! Required Information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for Internal management reports and absorption costing for external reports to shareholders, creditors. and the government. The company has provided the following data: Inventories Year 1 O Increase O Decrease Beginning (units) Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 210 160 $ 300,000 Fixed manufacturing overhead cost Year 2 Year 3 160 190 $ 279,000 2. Assume In Year 4 that the company's variable costing net operating Income was $250,000 and its absorption costing net operati Income was $300,000. a. Did Inventories Increase or decrease during Year 4? inventory during Year 4 190 240 $ 250.000 b. How much fixed manufacturing overhead cost was deferred or released from Inventory during Yes4?

! Required Information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for Internal management reports and absorption costing for external reports to shareholders, creditors. and the government. The company has provided the following data: Inventories Year 1 O Increase O Decrease Beginning (units) Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 210 160 $ 300,000 Fixed manufacturing overhead cost Year 2 Year 3 160 190 $ 279,000 2. Assume In Year 4 that the company's variable costing net operating Income was $250,000 and its absorption costing net operati Income was $300,000. a. Did Inventories Increase or decrease during Year 4? inventory during Year 4 190 240 $ 250.000 b. How much fixed manufacturing overhead cost was deferred or released from Inventory during Yes4?

Name: !Required Information[The following information applies to the questi
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: !Required Information[The following information applies to the questions displayed below.]Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company usesvariable costing for Internal management

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Per Unit $ 200 $ 72 $ 50 $ 10 $8 Multiple Choice $ 287,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $28,700. The absorption costing net operating income will be lower than the variable costing net operating income by $100,700. Per Year The absorption costing net operating income will be higher than the variable costing net operating income by $28,700.
! Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 58,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 23 $ 15 $3 $ 3 $ 1,160,000 $ 640,000 The company sold 40,000 units in the East region and 14,000 units in the West region. It determined that $320,000 of its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead…
What is the proper solution for this problem?
Cop
Jorgansen Lighting. Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for Internal management reports and absorption costing for external reports. The company provided the following data: Inventories: Beginning (units) Ending (units) Variable costing net operating income Year 1 Year 2 Year 3 200 178 180 170 180 220 $ 1,080,400 $ 1,032,400 $ 996,400 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Exercise 7-3 (Static) Part 1 Required: 1. Calculate each year's absorption costing net operating Income. Note: Enter any losses or deductions as a negative value. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Year 1 Year 2 Year 3
Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 22 $ 12 $3 $5 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce…
Munabhai
I NEED ONLY THE ANSWERS FOR 9.3 AND 9.4 QUESTION
12. A company had the following total usage of direct labor and direct materials Pounds Hours 400 Direct labor (P8 per hour) Direct materials (P10 per pound) Incomplete Job 101 has used 20 hours of direct labor and 8 pounds of direct materials. Factory overhead is applied at the rate of 200% per direct labor peso. What is the balance of work-in-process relating to Job 101? a. P560 debit 300 b. P560 credit C. P12,600 debit d. P12,600 credit
Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Income $ 3,240,000 396,000 105,000 5,040,000 3,636,000 1,404,000 $ 60 per unit $ 22 per unit $ 8 per unit $ 528,000 per year $ 11 per unit $ 105,000 per year 105,000