Question: Cost AccountBeginning inventoryUnits producedUnits sold500020,00023,700Cost per unit:Direct materials$ 8.00Direct labor$4.00Variable overheadFixed overheadVariable selling exp.$ 1.50$4.15$ 3.00Fixed selling and admin. exp.$ 24,000Fixed overhead totals $83,000 per year.Assume the selling price is $27 per unit.1. Calculate operating income using absorption costing.2. Calculate operating income using variable costing.

Step 1: Key InformationProduction and Sales Data:Beginning inventory: 5,000 unitsUnits produced:…

Answered: Question: Cost Account Beginning…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of 3,000,000. The beginning finished goods inventory was 25,000 units at 310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Cost per equivalent unit this period Cost in beginning work-in-process inventory Equivalent units to complete beginning inventory Direct Materials $3.00 $24,000 0 Conversion $5.00 $29,400 2,400 Units started and completed this period 26,000 26,000 Equivalent units in completed ending inventory 12,000 4,800 Materials are added at the beginning of the production process. Conversion costs are added uniformly throughout the production process. Assuming a FIFO flow of costs, what is this company's computed total production cost transferred out during the period?
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Cost Information and FIFO Gunnison Company had the following equivalent units schedule and cost information for its Sewing Department for the month of December: Direct Materials Conversion Costs Units started and completed 43,000 43,000 Add: Units in beginning work in process x Percentage complete: 4,000 x 0% direct materials 4,000 x 50% conversion Costs 2,000 Add: Units in ending work in process x Percentage complete: 14,000 x 100% direct materials 14,000 14,000 x 35% conversion Costs Equivalent units of outpu 4,900 57,000 49,900 Costs: Work in process, December 1: Direct Material $20,000 Conversion Costs 12,000 Total work in process $32,000 Current costs: Direct Material $342,000
Sd Sub: accounting
Question Content Area Compute conversion costs given the following data: direct materials, $376,200; direct labor, $200,400; factory overhead, $179,400 and selling expenses, $48,400. a. $555,600 b. $131,000 c. $756,000 d. $379,800
Use the following information to compute the cost of direct materials used for the current year. Beginning of Year $ 12,000 24,000 17,000 Inventories Raw materials inventory Work in process inventory Finished goods inventory Activity during current year Raw materials purchased Direct labor Factory overhead Multiple Choice $259,000. $244,000. $ 247,000 188,000 78,000
Assume the following information: Milling Department Cost of beginning work in process inventory Costs added during the period Total cost Materials $ 10,000 295,000 $ 305,000 A Conversion $ 15,000 385,000 $ 400,000 If the equivalent units of production for materials is 6,000 units using the weighted-average method, then what is the cost per equivalent unit for materials? Total $ 25,00 680,00 $705,00
Problem solve with calculation
Per Unit Total\\nDirect materials $ 5.00 \\nDirect labor 2.00 \\nSupervision 1.90 $ 123,500\\nDepreciation 1.40 $ 91,000\\nVariable manufacturing overhead 0.60 \\nRent 0.60 $ 39,000\\nTotal product cost $ 11.50 \\n \\n\\nIf Futura decides to make the starters, a supervisor would have to be hired (at a salary of $123,500) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $81,000 per period. Depreciation is due to obsolescence rather than wear and tear.\\n\\n \\n\\nRequired:\\n\\nWhat is the financial advantage (disadvantage) of making the 65,000 starters instead of buying them from an outside supplier?

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