William needs to show his supervisor how COGS, as reported on the company's income statement, might differ depending on the costing system used. Regardless of which inventory costing system the company uses, standard costs are incorporated into the analysis. The variable manufacturing and variable operating costs were $16 per unit and $4 per unit, respectively. Budgeted and actual fixed-MOH cost was $24,200, while fixed operating costs were $14,000. The company budgeted for 2.200 units but produced and sold 2.300 units this year. Any fixed-MOH volume variance is to be written off directly to COGS. William knew there were no variable cost variances. Show the COGS that would be presented on the company's income statement under (a) variable costing and (b) absorption costing. COGS $ Variable Costing Absorption Costing

William needs to show his supervisor how COGS, as reported on the company's income statement, might differ depending on the costing system used. Regardless of which inventory costing system the company uses, standard costs are incorporated into the analysis. The variable manufacturing and variable operating costs were $16 per unit and $4 per unit, respectively. Budgeted and actual fixed-MOH cost was $24,200, while fixed operating costs were $14,000. The company budgeted for 2.200 units but produced and sold 2.300 units this year. Any fixed-MOH volume variance is to be written off directly to COGS. William knew there were no variable cost variances. Show the COGS that would be presented on the company's income statement under (a) variable costing and (b) absorption costing. COGS $ Variable Costing Absorption Costing

Name: William needs to show his supervisor how COGS, as reported on the com
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Description: William needs to show his supervisor how COGS, as reported on the company's income statement, might differ depending on thecosting system used. Regardless of which inventory costing system the company uses, standard costs are incorporated into thean

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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Gary needs to show his supervisor how COGS, as reported on the company's income statement, might differ depending on the costing system used. Regardless of which inventory costing system the company uses, standard costs are incorporated into the analysis. The variable manufacturing and variable operating costs were $18 per unit and $3 per unit, respectively. Budgeted and actual fixed-MOH cost was $18,000, while fixed operating costs were $12,200. The company budgeted for 1.800 units but produced and sold 1,900 units this year. Any fixed-MOH volume variance is to be written off directly to COGS. Gary knew there were no variable cost variances. Show the COGS that would be presented on the company's income statement under (a) variable costing and (b) absorption costing. Variable Costing COGS $ $ Absorption Costing
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The cost accountant of L. Rosales, Inc. is considering to use the ABC system in determining the cost of its products. At present, the company uses the traditional costing systems wherein factory overhead costs are allocated based on direct labor hours. This cost accountant believes that the present system may be providing misleading cost information, hence, the plan to change to ABC system. For the coming period, the company is planning to use 5,000 direct labor hours, and its total budgeted factory overhead amounts to P 90,000, broken down as follows: Activity Cost Driver Budgeted Activity Budgeted Cost Sets up cost Number of set ups 40 P 20,000 Production monitoring Number of batches 20 40,000 Quality control Number of inspections 1,000 30,000 Total overhead…
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