The Foundational 15 (Algo) [LO4-1, LO4-2, LO4-3, LO4-4, LO4-5][The following information applies to the questions displayed below.]Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-East and West. Thefollowing information pertains to the company's first year of operations in which it produced 57,000 units and sold 52,000units.Variable costs per unit:Manufacturing:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrativeFixed costs per year:Fixed manufacturing overheadFixed selling and administrative expense$ 25$ 18$ 3$ 5$ 627,000$ 645,000The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of itsfixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and theremaining $75,000 is a common fixed expense. The company will continue to incur the total amount of its fixedmanufacturing overhead costs as long as it continues to produce any amount of its only product.Foundational 4-8 (Algo)a. What is the company's break-even point in unit sales?

Step 1: Break even point is the optimum point of no profit no loss as at this point the firm is…

Answered: The Foundational 15 (Algo) [LO4-1,…

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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A merchandising company sells a particular product that is estimated to have approximately 1,500 sales this year. The purchasing department estimates that it will cost approximately $200 to place an order for this product: $180 fixed and $20 variable. The total annual carrying cost for this product is $1,500. What is the product’s EOQ? A. 775 B. 19 C. 735 D. 20
O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: During its first year of operations, O’Brien produced 100,000 units and sold 80,000 units. During its second year of operations, it produced 75,000 units and sold 90,000 units. In its third year, O’Brien produced 80,000 units and sold 75,000 units. The selling price of the company’s product is $75 per unit. Required: Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first): Compute the unit product cost for Year 1, Year 2, and Year 3. Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in, first-out. In other words, it assumes that the newest units in inventory are sold first): Compute the unit…
! Required information The Foundational 15 (Algo) [LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per unit: Manufacturing: Direct materials. $ 21 Direct labor $ 10 $2 Variable manufacturing overhead Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 1,060,000 $ 557,000 Fixed selling and administrative expense The company sold 36,000 units in the East region and 12,000 units in the West region. It determined that $270,000 of its fixed selling and administrative expense is traceable to the West region, $220,000 is traceable to the East region, and the remaining $67,000 is a common fixed expense. The company will continue to…
Cc. 188.
The following information concerns the company Plastic Products S.A. which produces a single product which is sold for 24 euros per unit. Of the 200,000 units produced in 20X3, 160,000 were sold during the year. It is noted that the company had no initial stocks of finished and semi-finished products on 1/1/20X3 and no final stocks of semi-finished products on 31/12/20X3. Then some additional information is given regarding the cost of the business during the 20X3 fiscal year. Cost element Direct materials Direct labor Variable general industrial overhead Fixed general industrial overhead Variable sales expenses Fixed sales expenses Value 480,000 euros 320,000 euros 160,000 euros 480,000 euros 160,000 euros 256,000 euros Calculate the operating result of the use 20X3 according to marginal and absorption costing.
Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income 3. Assume that the company expects sales of each product to increase to 67,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Sales Variable cost Contribution margin Fixed costs Income (loss) Mementos $ 863,900 Carvings $ 863,900 604,730 259, 170 116,170 86,390 777,510 634,510 $ 143,000 $ 143,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units 67,000…
Miller Company produces a single product. The company had the following results for its first two years of operation: year 1 year 2 sales 1,200,000 1,200,000 cogs 800,000 680,000 gross margin 400,000 520,000 selling and admin expenses 300,000 300,000 Net Operating Income 100,000 220,000 n Year 1, the company produced and sold 40,000 units of its only product; in Year 2, the company again sold 40,000 units, but increased production to 50,000 units. The company's variable production cost is P5 per unit and its fixed manufacturing overhead cost is P600,000 a year. Fixed manufacturing overhead costs are applied to the product on the basis of each year's unit production (i.e., a new fixed overhead rate is computed each year). Variable selling and administrative expenses are P2 per unit sold. d.What is the fixed overhead deferred under absorption costing in year 2?e.How do you reconcile the variable costing and absorption costing income figures for year 2?
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Smith & Chief Ltd. of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the four most recent quarters follow. SMITH & CHIEF LTD. Income Statements For the Four Quarters Ending December 31 Quarter 1 Quarter 2 6,100 5.600 A$610,000 A$560,080 A$692,000 366,000 336,000 415,280 244,800 224,800 276,800 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Advertising expense Shipping expense Salaries and commissions expense (Note: Smith & Chief Ltd.'s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.) S Advertising expense 22,600 22,600 22,600 40,408 42.400 42,080 87,600 81,200 97,840 94,288 7,500 7,600 7,600…
vaibhav subject-Accounting
E55.

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