Test II. Costs ComputationGiven the following facts, complete the table and compute requirements below:10,000unitsPer20,000units30,000unitsUnitSalesP1,000,000Direct MaterialsP 30Direct Labor500,000Variable Factory Overhead300,000Variable Marketing & Selling Expenses (5% based on sales)Variable General & Administrative Expenses50,000Fixed Factory Overhead200,000Fixed Marketing & Selling Expenses150,000Fixed General & Administrative Expenses50,000Profit (Loss)

The income statement is prepared to find the net income or loss incurred during the period.

Answered: Sales P1,000,000 Direct Materials P 30…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Martin Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $16,300 $189,000 $124,000 $72,000 $65,000 $12,000 Decrease by $77,150 Increase by $82,650 Increase by $135,000 Increase by $77,150 23,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $5500 is incurred? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.)
Garfield Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory Fixed manufacturing overhead in production Ending fixed manufacturing overhead in inventory $210,000 800,000 70,000 Beginning variable manufacturing overhead in inventory Variable manufacturing overhead in production Ending variable manufacturing overhead in inventory What is the difference between operating incomes under absorption costing and variable costing? OA. $10,000 OB. $80,000 O C. $100,000 O D. $140,000 $30,000 100,000 30,000
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Projected Income Statement Sales $844,000 Less variable costs: Variable manufacturing costs $286,000 Variable Selling costs $117,000 _________ Total variable costs 403,000 Contribution Margin $441,000 Less fixed costs: Fixed manufacturing costs $146,000 Fixed Selling and admin costs 82,200 Total fixed costs 228,200 Operating Income $212,800 The projected income statement was based on sales of 92,900 units. Company has the capacity to produce 125,500 units during the year. A. Determine the break-even point in units. Round up to the next whole unit B. The sales manager believes that the company could increase sales by 7,700 units if the advertising expenditures were increased…
Product Data Model A Model B Units produced per year 10,000 100,000 Prime costs $153,000 $1,530,000 Direct labor hours 143,000 310,000 Machine hours 21,000 196,000 Production runs 40 60 Inspection hours 900 1,300 Maintenance hours 8,000 92,000 Overhead costs: Setup costs $300,000 Inspection costs 209,000 Machining 318,200 Maintenance 260,000 Total $1,087,200 2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.) Model A: overhead cost per unit Model B: overhead cost per unit Note: Be sure to complete both tables below. Activity Driver Activity Rate Setups Production runs per run Inspections Inspection hours per hour Machining Machine hours per hour Maintenance Maintenance hours per hour Overhead assignment Model A Model B Setups Inspections Machining…
Total Manufacturing Costs ₱325,000 Applied Overhead Costs, 75% of direct labor cost ₱075,000 Selling expenses ₱316,000 Administrative expenses ₱314,000 What is the cost of direct materials? Show solution Group of answer choices ₱175,000 ₱193,750 ₱220,000 ₱150,000
Sales (30,000units) P 150,000 Variable costs 100,800 Contribution margin P 49, 200 Fixed manufacturing costs 24,000 Operating income P 25,200 Interest 18,000 Earnings before taxes P 7,200 Taxes (at 31%) 2,160 Net income P 5,040 Shares outstanding 600 The firms break-even point is a.…
Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 52,000 to 92,000 units is given below: Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 82,000 units during the year at a selling price of $9.56 per unit. Prepåre a contribution format income statement for the year.
Deliveries to the retailers Sh.so 2,400,000 Set-up costs 6,000,000 Purchase order costs 3,600,000 Total overheads 12,000,000 All director labor is paid at $ 5 per hour. The company holds no inventories. Required: a. Calculate the total profit on each of General Motor's three types of products using each of the following methods: 1. The existing method based upon labor hours 2. Activity based costing
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PROBLEM I, During the year 200A, Wouie Corporation's production was equal to its normal capacity of 1,000 units, It sold 900 units at a price of P50 per unit, The following costs were incurred during the year: Total Cost P 12,000 10,000 8,000 6,000 4,500 Cost per Unit P 12 Direct Materials Direct Labor 10 Variable Factory Overhead Fixed Factory Overhead & 8 Variable Selling Administrative Expenses Fixed Selling & Administrative Expenses 3,000 3 Variable selling and administrative cost per unit = Total / Units Sold = P 4,500 / 900 = P 5 Required: 1. Product cost per unit under absorption and variable costing 2. Income under absorption and variable costing 3. Computation of and accounting for the difference in income
Sales (17,500 units) $1,750,000 Production costs (23,000 units): Direct materials $851,000 Direct labor 409,400 Variable factory overhead 204,700 Fixed factory overhead 135,700 1,600,800 Selling and administrative expenses: Variable selling and administrative expenses $248,100 Fixed selling and administrative expenses 96,000 344,100 If required, round interim per-unit calculations to the nearest cent. *** I only need assistance with the ones that are blank. Could you also leave the steps on how to solve it, please? a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales $1750000 Cost of goods sold Gross profit $ Selling and administrative expenses 344100 Income from operations $ b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc.…

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