ReVitalAde produced 13,000 cases of powdered drink mix and sold 12.000 cases in April. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable costing: (Click the icon to view the data using variable costing.) Read the requirements. Requirement 1. Prepare the April income statement using absorption costing. Operating Income ReVitalAde Income Statement (Absorption Costing) Month Ended April 30 Requirements Reference Total product cost per unit Cost of Finished Goods Inventory as of April 30 Print 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. - X Done $ $ Variable Costing - X 9.00 9,000

ReVitalAde produced 13,000 cases of powdered drink mix and sold 12.000 cases in April. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable costing: (Click the icon to view the data using variable costing.) Read the requirements. Requirement 1. Prepare the April income statement using absorption costing. Operating Income ReVitalAde Income Statement (Absorption Costing) Month Ended April 30 Requirements Reference Total product cost per unit Cost of Finished Goods Inventory as of April 30 Print 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. - X Done $ $ Variable Costing - X 9.00 9,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900
Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Solomon Manufacturing Company makes a product that sells for $75.30 per unit. Manufacturing costs for the product amount to $26.90 per unit variable, and $66,000 fixed. During the current accounting period, Solomon made 3,300 units of the product and sold 2,500 units. Selling and administrative expenses were zero. Required a. Prepare an absorption costing Income statement. b. Prepare a variable costing Income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an absorption costing income statement. Note: Do not round intermediate calculations. SOLOMON MANUFACTURING COMPANY Absorption Costing Income Statement
Gibson Manufacturing Company makes a product that sells for $74.60 per unit. Manufacturing costs for the product amount to $25.10 per unit variable, and $65,100 fixed. During the current accounting period, Gibson made 3,100 units of the product and sold 2,600 units. Selling and administrative expenses were zero. Required a. Prepare an absorption costing income statement. b. Prepare a variable costing income statement.
Elbrege Corporation manufactures a single product. The company has supplied the following data: Selling price per unit $ 30 Variable costs per unit: Production $ 7 Selling and administrative $ 4 Fixed costs per year: Production $ 75,000 Selling and administrative $ 50,000 There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold. Under absorption costing, the unit product cost would be:
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 35 Selling and administrative $ 13 Fixed costs per year: Production $96,320 Selling and administrative $84,760 Last year, 6,020 units were produced and 5,920 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:.
Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. Required: Calculate the unit product cost. (Note: Round to the nearest cent.) Calculate the cost of budgeted ending inventory (Note: Round to the nearest dollar.)
Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable costing, ________. A. its operating income will be the same as under absorption costing B. its operating income for the period will be lower than under absorption costing C. its operating income for the period will be higher than under absorption costing D. its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 42 Selling and administrative $ 16 Fixed costs per year: Production $ 114,240 Selling and administrative $ 98,250 Last year, 7,140 units were produced and 6,940 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be: *MULTIPLE CHOICE: See attached image
Freshmart Inc. began operations last year when it produced and sold the same nuber of units. This year, the company produced 1,000 units and sold 750 units at a selling price of $100 per unit. Fixed overhead costs totaled $30,000 and fixed selling and administrative expenses were $15,000. Variable production costs were $25.00 per unit while variable selling and administrative expenses were $10.00 per unit. Using absorbtion costing, net income was: A. $3,750 B. $11,250 C. $20,000 D. $48,750