Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-ordercosting system. The capacity of the plant is determined by the capacity of its constraint, which is time on the automated bandsaw thatmakes finely beveled cuts in wood according to the preprogrammed specifications of each cabinet. The bandsaw can operate up to184 hours per month. The estimated total manufacturing overhead cost at capacity is $15,088 per month. The company bases itspredetermined overhead rate on capacity, so its predetermined overhead rate is $82 per hour of bandsaw use.The results of a recent month's operations appear below:SalesBeginning inventoriesEnding inventoriesDirect materialsDirect laborManufacturing overhead incurredSelling and administrative expenseActual hours of bandsaw useRequired:1-a. Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a periodexpense.1-b. What was the cost of unused capacity during the month?Required 1A Required 1B$ 43,800$0$0Complete this question by entering your answers in the table below.$5,310$8,840$ 14,260$ 8,220154SalesPrepare an income statement for the month. Your income statement should include the cost of unused capacity as a periodexpense.Wixis CabinetsIncome Statement Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-ordercosting system. The capacity of the plant is determined by the capacity of its constraint, which is time on the automated bandsaw thatmakes finely beveled cuts in wood according to the preprogrammed specifications of each cabinet. The bandsaw can operate up to184 hours per month. The estimated total manufacturing overhead cost at capacity is $15,088 per month. The company bases itspredetermined overhead rate on capacity, so its predetermined overhead rate is $82 per hour of bandsaw use.The results of a recent month's operations appear below:SalesBeginning inventories.Ending inventories.Direct materialsDirect laborManufacturing overhead incurredSelling and administrative expense.Actual hours of bandsaw useRequired:1-a. Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a periodexpense.1-b. What was the cost of unused capacity during the month?Required 1A Required 1B$ 43,800$0$0Complete this question by entering your answers in the table below.What was the cost of unused capacity during the month?Cost of unused capacity$5,310$8,840$ 14,260$ 8,220154< Required 1ARequired 1B >

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Description: Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-ordercosting system. The capacity of the plant is determined by the capacity of its constraint, which is time on the automated bands

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Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-order costing system. The capacity of the plant is determined by the capacity of its constraint, which is time on the automated bandsaw that makes finely beveled cuts in wood according to the preprogrammed specifications of each cabinet. The bandsaw can operate up to 184 hours per month. The estimated total manufacturing overhead cost at capacity is $15,088 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $82 per hour of bandsaw use. The results of a recent month's operations appear below: Sales Beginning inventories Ending inventories Direct materials Direct labor Manufacturing overhead incurred Selling and administrative expense Actual hours of bandsaw use Required: $ 43,800 $0 $0 $ 5,310 $ 8,840 $ 14,260 $ 8,220 154 1-a. Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. 1-b. What was the cost of unused capacity during the month?

Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-order costing system. The capacity of the plant is determined by the capacity of its constraint, which is time on the automated bandsaw that makes finely beveled cuts in wood according to the preprogrammed specifications of each cabinet. The bandsaw can operate up to 184 hours per month. The estimated total manufacturing overhead cost at capacity is $15,088 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $82 per hour of bandsaw use. The results of a recent month's operations appear below: Sales Beginning inventories Ending inventories Direct materials Direct labor Manufacturing overhead incurred Selling and administrative expense Actual hours of bandsaw use Required: $ 43,800 $0 $0 $ 5,310 $ 8,840 $ 14,260 $ 8,220 154 1-a. Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. 1-b. What was the cost of unused capacity during the month?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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