Sailing Industries manufactures a single product. Variable production costs are P20 and fixed production costs are P150,000. Sailing uses a normal activity of 10,000 units to set its standard costs. Sailing began the year with no inventory, produced 11,000 units, and sold 10,500 units. Ending inventory under variable costing would be
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Sailing Industries manufactures a single product. Variable production costs are P20 and fixed production costs are P150,000. Sailing uses a normal activity of 10,000 units to set its
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- The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 33 Selling and administrative $ 16 Fixed costs per year: Production $ 130,830 Selling and administrative $ 107,280 Last year, 6,230 units were produced and 6,030 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:Freshmart, Inc., began operations this year. The company produced 1,000 units and sold 1,000 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 absorption costing, net income was:Pyne Company produces a single product. The company has 60,000 units in its ending inventory. Pyne's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $25 per unit ( which was the same as last year). The company's net operating income is $135,000 higher under variable costing than it is under absorption costing; and the company uses FIFO and closes any over- or under-applied overhead directly to cost of goods sold. Given these facts, what was the number of units of product in beginning inventory?
- Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $917. Selected data for the company's operations last year follow: 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 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 13,000 9,000 4,000 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 210 $ 440 $ 58 $18 $ 770,000 $ 550,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.Vacation Corporation produces a single product. Data concerning the company's first year of operations appear below: Units produced 10,000 Units sold 9,000 Selling price per unit Р60 DM P15 DL Р5 Variable OH P2 Variable selling and administrative P4 BED EXAS Fixed OH P200,000 Fixed selling and administrative P70,000 Compute for the difference in net operating income between absorption costing and variable costing for the year.Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price $ 57.50 per unit Direct materials $ 10.50 per unit Direct labor $ 8.00 per unit Variable overhead $ 12.50 per unit Fixed overhead $ 1,237,500 per year 1. Compute gross profit assuming (a) 75,000 units are produced and 75,000 units are sold and (b) 110,000 units are produced and 75,000 units are sold.2. By how much would the company’s gross profit increase or decrease from producing 35,000 more units than it sells?
- The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production Selling and administrative $ $ 35 14 Fixed costs per year: Production $216,300 $190,340 Selling and administrative Last year, 7,210 units were produced and 7,110 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:Variable and Absorption CostingChandler Company sells its product for $108 per unit. Variable manufacturing costs per unit are $49, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $17 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory for the year. During the year, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company be higher if calculated using variable costing or using absorption costing?Calculate reported income using each method.Do not use negative signs with any answers.Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $840. Selected data for the company's operations last year follow: 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 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative The absorption costing income statement prepa Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 0 300 275 25 $ 100 $310 $ 30 $ 35 $ 66,000 $ 31,000 by the company's accountant for last year appears below: $ 231,000 181,500 49,500 40,625 $ 8,875 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.
- During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On August 31, Olympic Inc. prepared the following income statement based on the variable costing concept: Olympic Inc.Variable Costing Income StatementFor Year Ended August 31, 20-- Sales $297,000 Variable cost of goods sold: Variable cost of goods manufactured $288,000 Less ending inventory 72,000 Variable cost of goods sold 216,000 Manufacturing margin $81,000 Variable selling and administrative expenses 40,500 Contribution margin $40,500 Fixed costs: Fixed manufacturing costs $12,000 Fixed selling and administrative expenses 10,800 22,800 Income from operations $17,700 a. Determine the unit cost of goods manufactured based on the variable costing concept.$ b. Determine the unit cost of goods manufactured based on the absorption costing concept. Round…During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $4 per unit, Direct labor, $3 per unit, Variable overhead, $3 per unit, and Fixed overhead, $342,000. The company produced 38,000 units, and sold 29,500 units, leaving 8,500 units in inventory at year-end. What is the value of ending inventory under variable costing? Multiple Choice $161,500 $85,000 $427,000 $76,500 $342,000Beech Company produces a single product. The company has 55,000 units in its beginning inventory. Beech's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $30 per unit (which was the same as last year). The company's net operating income is $114,000 lower under variable costing than it is under absorption costing; and the company uses FIFO and closes any over- or under-applied overhead directly to cost of goods sold. Given these facts, what was the number of units of product in ending inventory? _______ units
