Selected data concerning the operations of NUBD Company for the year ended December 31, 2021 is available as follows: Units produced Units sold Direct materials used Direct labor incurred Fixed factory overhead 10,000 Variable factory overhead 9,000 Fixed selling & admin. exp P 40,000 Variable selling & admin. exp. P 20,000 Finished goods inventory, beg. P 25,000 P12,000 30,000 4,500 none There were no work in process inventory at the beginning and end of 2021.

Selected data concerning the operations of NUBD Company for the year ended December 31, 2021 is available as follows: Units produced Units sold Direct materials used Direct labor incurred Fixed factory overhead 10,000 Variable factory overhead 9,000 Fixed selling & admin. exp P 40,000 Variable selling & admin. exp. P 20,000 Finished goods inventory, beg. P 25,000 P12,000 30,000 4,500 none There were no work in process inventory at the beginning and end of 2021.

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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The objective of management, under absorption costing, is that each product recovers its full cost and leaves something towards profit as a return on investment. 1. provide the meaning of Absorption costing and Provide a numerical data and find the profit using the same method ?
Question A(iii) and B please
Under variable costing: a. Net operating income will always be higher than under absorption costing. b. Net operating income will tend to move up and down in response to changes in levels of production. O c.Inventory costs will be lower than under absorption costing. d. Net operating income will tend to vary inversely with production changes
True or false Give answer of all with explanation.
Which of the following is a correct statement? O A. the fixed manufacturing cost is based on a per unit cost, when using Variable Costing O B. the fixed manufacturing cost is based on a per unit cost, when using Absorption Costing and a total cost, when using Variable Costing Oc the variable manufacturing cost is shown as a total cost in both Variable Costing and Absorption Costing O D. the fixed manufacturing cost is always shown as a total cost, when using Absorption Costing
Within the relevant range, as volume of activity increases a. Total fixed costs remain the sameb. Fixed cost per unit decreasesc. Variable cost per unit remains the samed.Total variable costs increasese. all of the above
2- The ABC costing method * a) is based on the Pareto curve b) is absorption costing c) allows you to track the most important activities d) does not present cost apportionment
What is the difference between variable costing and absorption costing income statements? a. Provide a hypothetical income statement in both formats in which the number of units sold is different from the number of units manufactured. b. Explain the contrast between the two formats.
The inventory cost computed under absorption costing is ____ the inventory cost computed using variable costing. Group of answer choices half of thrice as much equal to greater than
Question One Describe the following costing systems: Marginal and Absorption costing Explains the effect on profit of using variable (marginal) and absorption costing. Explain TWO advantages and TWO disadvantages of both marginal and absorption costing systems.
Over extended periods of time, the net income figures reported under absorption costing will be: a. Equal to net income reported under variable costing b. Higher or lower because no generalization can be made c. Less than net income reported under variable costing d. Greater than net income reported under variable costing
How is operating income affected if the number of units sold exceeds the number of units produced? Select one: a. Operating income would be higher under a variable costing income statement. b. Operating income would be lower under a variable costing income statement. c. Operating income would be higher under an absorption costing income statement. d. Operating income would be the same under both a variable costing and absorption costing income PreviousSave AnswersNext