X Company's Job AAA manufactured 12,000 units that were completed in April at unit costs presented as follows: Direct materials P300 Direct labor 270 Factory overhead (excluding allowance of P15 For spoiled work) 225 Final inspection of Job AAA disclosed 1,200 spoiled units, which were sold for P300,000.

X Company's Job AAA manufactured 12,000 units that were completed in April at unit costs presented as follows: Direct materials P300 Direct labor 270 Factory overhead (excluding allowance of P15 For spoiled work) 225 Final inspection of Job AAA disclosed 1,200 spoiled units, which were sold for P300,000.

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

A company with fixed costs of P40,000 is now breaking even on sales of P160,000. How much income can be expected on sales of P200,000?
What is the answer for number 20?
Which of the following would produce no change in the contribution margin per unit? Select one: a. A 14% increase in variable cost. b.A 7% increase in selling price. CA 15% decrease in selling price. d. None of the given of answers. A 23% increase in the number of units sold.
If a company decides to increase its selling price by $4 per unit because of an increase in its variable labor cost of $4 per unit, what impact will these two changes have on the break-even volume in units?
XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000 to $500,000, but variable costs will increase from $12 per unit to $14 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price), profit would not change. What would happen to the company's profit if the changes were implemented, and production decreased to 45,000 units? O a. It will stay the same. O b. It will decrease. O c. none of the given answers O d. It will increase.
The cost accountant of Sacramento Company provided you the 2019 and 2020 selling price per unit, variable cost per unit and total fixed costs as follows: (2019: P20; P12; P50,000) and (2020: P22; P13.20; P50,000). What is the effect in changes in selling prices and variable costs to break-even volume from 2019 to 2020? * Insufficient data to determine the effect in break-even volume. Decrease in break-even volume. Increase in break-even volume. No change in break-even volume.
Time left 0:25 Each of a company's two product lines has a different contribution margin ratio. If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the lower contribution ratio, which of the following is false? a. the breakeven point will increase. b. operating income will increase. С. Fixed cost will be constant. d. all of the answers are true. e. the average contribution margin ratio will decrease. On the cost-volume-profit graph, the area between the total cost line and the sales line before the break even point represents: a. The variable cost amount b. The contribution margin per unit
Please solve accurately. Thank you
MARGINAL COSTING- Il: APPLICATION OF MARGINAL COSTING TECHNIQUES (b) the selling price is reduced by 20 % ? cycles will have to be made to get the same amount of profits, if : Snow' per month at 1.25 per jar. The company's normal production capacity is 20,000 jars of to keep the total profits intact. What level of production will have to be reached, ie., how many The company expects that due to competition they will have to reduce selling price, but they want ion is possibl of buying 20 (a) the selling price is reduced by 10 % e offer should 143 CHNIO ed as it is only when ion is possibe [Ans. (a) 1,25,000 cycles: (b)l.66,667 cycles) F+ DesiredP () the selling price is reduced by 20 % ? %3D Hint : Cycles to be sold C per unit Saow' per month at ? 1.25 per jar. The company's normal production capacity is 20,000 jars of enow per month. An analysis of cost for 10,000 jars shows: Everest Snow Company manufactures and sells direct to consumers 10,000 jars of Everest 22. 1,000 2,475 Direct…
28. If a company follows target costing approach, and normally expects a markup on cost of 20% and estimates that a new product will sell successfully at a price of OMR 60, then the maximum cost of production should be _______ a. OMR 50 b. OMR 120 c. OMR 20 d. OMR 10
Eaton Tool Company has fixed costs of $435,600, sells its units for $94, and has variable costs of $50 per unit. a. Compute the break-even point. Break-even point b. Ms. Eaton comes up with a new plan to cut fixed costs to $340,000. However, more labor will now be required, which will increas variable costs per unit to $53. The sales price will remain at $94. What is the new break-even point? Note: Round your answer to the nearest whole number. New break-even point units Profitability will be less Profitability will be more units c. Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)?
Can you please explain the statement with an example? Also, check whether my understanding of the example is correct. "If using the same unit fixed costs at different output levels, managers may reach erroneous conclusions. Total fixed costs should be used." My Understanding: For example, if the capacity is 1000 and currently we produce 1000 units and sell it for $20 per unit, variable cost $5 and the fixed cost $10 per unit (within the relevant range); and we have a special order to produce 1200 units for $8 per unit. Should we include additional the Total Fixed Cost of $10000, which is (10*1000) for the range (1001-2000) plus $10000 for the range (0-1000), which means, we will have a total fixed cost of $20000.