The following data were taken from the records of C5 Drinks Company for the yearsending Year I and Year 2Year 1Year 2In units00Inventory, beginningProductionAvailable for sale20,00020,00013,0007,000P260,0007,00018,00025,00023,0002,000P460,000Units soldInventory endingSales (P20 per unit)egtarb won sEVariable Manufacturing cost (P7.50 per unit)Fixed Manufacturing costsSelling and administrative (60% fixed, 40% variable) 45,000150,00050,000135,00054,00075,000aninelInstructions:1. Determine the net income under absorption costing for Year I and Year 2.2. Determine the net income under variable costing for Year1 and Year 2.3. Determine the cause of the difference in the two net incomes in Year 1 and Year 2.sV

Name: The following data were taken from the records of C5 Drinks Company f
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: The following data were taken from the records of C5 Drinks Company for the yearsending Year I and Year 2Year 1Year 2In units00Inventory, beginningProductionAvailable for sale20,00020,00013,0007,000P260,0007,00018,00025,00023,0002,000P460,000Units s

The income statement can be prepared using various methods as absorption costing and variable…

Business

Accounting

The following data were taken from the records of C5 Drinks Company for the years ending Year I and Year 2 In units Year 1 Year 2 Inventory, beginning Production Available for sale Units sold 20,000 20,000 13,000 7,000 P260,000 7,000 18,000 25,000 23,000 2,000 P460,000 Inventory ending Sales (P20 per unit) Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing costs 150,000 50,000 135,000 54.000

The following data were taken from the records of C5 Drinks Company for the years ending Year I and Year 2 In units Year 1 Year 2 Inventory, beginning Production Available for sale Units sold 20,000 20,000 13,000 7,000 P260,000 7,000 18,000 25,000 23,000 2,000 P460,000 Inventory ending Sales (P20 per unit) Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing costs 150,000 50,000 135,000 54.000

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

At the end of January, Mineral Labs had an inventory of 855 units, which cost $8 per unit to produce. During February the company produced 1,300 units at a cost of $12 per unit. a. If the firm sold 1,650 units in February, what was the cost of goods sold? (Assume LIFO inventory accounting.) Cost of goods sold b. If the firm sold 1,650 units in February, what was the cost of goods sold? (Assume FIFO inventory accounting.) Cost of goods sold
Please dont provide solution in image format thanku
The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units Units produced Units sold Sales 0 8,600 5,900 $ 767,000 $ 172,000 $ 86,000 Materials cost Variable conversion cost used Fixed manufacturing cost Indirect operating costs (fixed) $ 946,000 $ 118,000 The difference between the variable costing ending inventory and the absorption costing ending inventory is: Multiple Choice O 2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost 4 2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost plus $111.67 per unit indirect operating c 2,700 units times $105 per unit materials cost
The following data relates to Alpha Company. Units in beginning inventory Units produced Units sold ($350 per unit) Variable costs per unit: Direct materials Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced Fixed selling and administrative expenses - 26,000 19,000 $40 60 25 $50 150,000 Determine the value of ending inventory under variable costing. a. $700,000 O b. $1,225,000 C. $805,000 O d. $875,000
Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 105,000 units Units sold this year 63,000 units Direct materials $ 29 per unit Direct labor $ 31 per unit Variable overhead $ 3 per unit Fixed overhead $ 918,750 in total Belle Company's product is sold for $89 per unit a Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $370,000 per year. Compute the net income under variable costing.
The annual data that follows pertain to See It, a manufacturer of swimming goggles (the company had no beginning inventory): Sales price. . . . . . . . . . . . . . . . . . . . . . . . . $49 Variable manufacturing expense per unit. . $17 Sales commission expense per unit. . . . . . $9 Fixed manufacturing overhead. . . . . . . . . . $1,980,000 Fixed operating expenses. . . . . . . . . . . . . . $245,000 Number of goggles produced. . . . . . . . . . . 220,000 Number of goggles sold. . . . . . . . . . . . . . . 200,000 Requirements: 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for See It for the year. 2. Which statement shows the higher operating income? Why? 3. The company marketing vice president believes a new sales promotion that costs $150,000 would increase sales to 220,000 goggles. Should the company…
Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations: Prior Year Current Year Sales (000s) 2,300 units 3, 700 units Production (000s) 3,000 units 3,000 units Production cost Factory-variable (per unit) $ 0.60 $ 0.60 —fixed (000s ) $ 1,500 $1,500 Marketing-variable (per unit) $ 0.40 $ 0.40 Administrative-fixed (000s) $ 500 $ 500 Required: 1. Prepare an income statement for each year based on full costing. 2. Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.Complete this question by entering your answers in the tabs below. Required 1 Prepare an income statement for each year based on full costing. (Enter your answers in thousands of dollars.)
Evans Company reported the following: Manufacturing costs Units manufactured Units sold Beginning inventory $2,385,000 53,000 40,000 units sold for $100 per unit O units What is the amount of gross profit margin? $2,915,000 $4,000,000 $1,615,000 $2,200,000
The following is the year ended data for Tiger Company: Sales Revenue $58,000 Cost of Goods Manufactured 21,000 Beginning Finished Goods Inventory 1,100 Ending Finished Goods Inventory 2,200 Selling Expenses 15,000 Administrative Expenses 3,900 What is the gross profit? A. $22,100 B. $38,100 C. $19,200 D.
Please do not give solution in image format thanku