### Educational Website Content: Thotho's Headscarf Manufacturing Financial Data**Thotho Manufactures Headscarves**The following financial information is recorded for Thotho's headscarf business as of December 31, 2012.#### Inventory and Production Data| Description | Amount (BWP) ||----------------------------------|--------------|| Opening inventory | 1,500 || Headscarves made during the year | 9,000 || Headscarves sold during the year | 9,500 || Closing inventory | 1,000 || Selling price per headscarf | 90 |#### Manufacturing Costs**Variable Costs:**- **Direct Material per Headscarf:** BWP 25- **Direct Labor per Headscarf:** BWP 9- **Variable Manufacturing Overhead:** BWP 5- **Total Variable Cost:** BWP 150,000**Fixed Costs:**- Fixed manufacturing overheads per year: BWP 150,000#### Selling and Administrative Costs**Variable Costs:**- Commission paid for selling one scarf: BWP 10**Fixed Costs:**- Fixed selling and administrative costs per year: BWP 100,000### TaskPrepare the income statement for the year ended December 31, 2012, utilizing the Absorption Cost method. ---This information will aid in understanding Thotho's cost structure and profitability for the year 2012. Use these figures to calculate total revenues, production costs, and to determine the overall financial performance through an income statement.

Its a technique in which all manufacturing costs, variable and fixed are considered as costs of…

Thotho manufactures headscarves. The following information is available in her books on December 31, 2012. Opening inventory Headscarves made during the year Headscarves sold during the year Closing inventory Selling price Manufacturing costs: Variable costs: - Direct material/headscarf - Direct labour hour cost used to make one scarf - Variable manufacturing overhead Fixed manufacturing overheads per year Selling and administrative costs: Commission paid for selling one scarf Fixed selling and administration costs per year BWP 1,500 9,000 9,500 1,000 90 25 9 5 150,000 10 100,000 Prepare the income statement for the year ended December 31, 2012 using Absorption cost

Thotho manufactures headscarves. The following information is available in her books on December 31, 2012. Opening inventory Headscarves made during the year Headscarves sold during the year Closing inventory Selling price Manufacturing costs: Variable costs: - Direct material/headscarf - Direct labour hour cost used to make one scarf - Variable manufacturing overhead Fixed manufacturing overheads per year Selling and administrative costs: Commission paid for selling one scarf Fixed selling and administration costs per year BWP 1,500 9,000 9,500 1,000 90 25 9 5 150,000 10 100,000 Prepare the income statement for the year ended December 31, 2012 using Absorption cost

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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tps://ezto.mheducation.com/ext/map/index.h Saved Required information [The following information applies to the questions displayed below.] Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time the company produced 60,000 units and sold 55,000 units at a sales price of $15 per unit. Cost information for this year is shown in the following table: Production costs $ 2.50 per unit Direct materials Direct labor $ 3.00 per unit $ Variable overhead Fixed overhead 0.75 per unit $240,000 in total Non-production costs Variable selling and administrative Fixed selling and administrative $ 10,000 in total $50,000 in total Given the Scavenger Company data, what is net income using absorption costing? Multiple Choice < Prev 5 of 7 #
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Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for 784. Selected data for the company's operations last year follow: Units in beginning inventory Units produced ces ✓ Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor f Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Mc Graw Hill 1. Absorption costing unit product cost 2. Variable costing unit product cost ? (@ 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. f2 2 f3 # M 3 4 $ 4 40 % 0 22,000 20,000 2,000 5 $ 180 $ 370 $63 $ 17 $ 680,000 $ 850,000 f6 Q Search 4- ^ 6 ¹74+ 4 & 7 90° *…
Ida Sidha Karya Company is a family owned company located on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $898. 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 $ $ $ 1 Absorption costing unit product cost 22,000 20,000 2,000 240 470 49 16 $ 640,000 $ 520,000 4 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.
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