Required:1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at theend of last year?2. Prepare an income statement for last year using variable costing. cesIda Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelansare sold for $970. Selected data for the company's operations last year follow:Units in beginning inventoryUnits producedUnits soldUnits in ending inventoryVariable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrativeFixed costs:Fixed manufacturing overheadFixed selling and administrativeSalenCost of goods sold.Gross marginSelling and administrative expenseNet operating income020018020$ 63,000$ 25,000The absorption costing income statement prepared by the company's accountant for last year appears below:$ 174,600139,50035,10027,700$ 7,400$130$ 300$ 30$ 15

The net income is calculated as excess of revenues over the total expenses. The contribution margin…

Answered: Required: 1. Under absorption costing,…

FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Under absorption costing, each unit of the company's inventory would be carried at:
A, B , And E only please
7. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? 8. What is Sweeten Company’s cost of goods sold for the year? 9. What are the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?
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What is the ending balance in Finished Goods? (Show T-Account) Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year? What is the gross margin for the year? What is the net operating income for the year?
Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (19,500 units) $2,925,000 Production costs (25,000 units): Direct materials $1,387,500 Direct labor 665,000 Variable factory overhead 332,500 Fixed factory overhead 222,500 2,607,500 Selling and administrative expenses: Variable selling and administrative expenses $404,200 Fixed selling and administrative expenses 156,500 560,700 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept.
XYZ Company uses normal costing. Following are various cost and inventory data for the just completed year: Sales revenue OMRA70,000; Adjusted gross profit OMR175,000; Selling and admin expenses OMR145,000 ; Overapplied overhead OMR15,000 ; Prime costs OMR155,000; Work in process inventory has increased by OMR10,000; Finished goods inventory has decreased by OMR20,000. How much is the manufacturing overhead costs applied to work in process during the year? Select one: O a. OMR130,000 O b. OMR145,000 O C. None of the answers given O d. OMR135,000 e. OMR155,000
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense 154 2,560 2,230 330 51 24 $. 15 16 $92,160 $11,150 The tegross margin for the month under absorption costing is: Multiple Chotce $62.440 S15.610, K Prev 4: of 10 Next > ere to search
[The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ Units produced this year Units sold this year 300 per unit 115,000 units 118,250 units 3,250 units Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $135) Fixed (3,250 units x $80) $ 438,750 260,000 Total $ 698,750 Manufacturing costs this year Direct materials $ Direct labor $ Overhead costs this year Variable overhead $3,000,000 Fixed overhead $7,400,000 es Selling and administrative costs this year Variable $1,300,000 4,400,000 Fixed 1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement 3 4 of 5 H M 2 *********** → Check my w
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Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing.