Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 18, Problem 3CE
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs:
*Fixed
Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at a price of $24, and fixed marketing and administrative expenses were $130,500.
Required:
- 1. Calculate the cost of each unit using absorption costing.
- 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing?
- 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October.
- 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
7)14% - XYZ Corporation is preparing a master budget for 2024. Sales for the year are
expected to total 200,000 units. Quarterly sales in units are 20%, 25%, 30%, and 25%
respectively. The sales price is expected to be $50 per unit for the first 3 quarters and $55
per unit beginning in the fourth quarter. Sales in the first quarter of 2024 are expected to be
10% higher than the budgeted sales volume for the first quarter of 2023.
For production purposes, management desires to maintain ending finished goods
inventories at 25% of the next quarter's budgeted sales volume. Beginning finished goods
on Jan. 1, 2024, are 30,000 units. For production purposes, two pounds of raw material are
required for each finished product. Management's target for desired ending inventory of
Materials in pounds is 20% of desired ending inventory of finished goods for the quarter.
Beginning inventory on January 1,2024 is4000 pounds.
Question:Financial Account - 03-69
Top Disc manufactures frisbees. The following information is available
for 2013, the company's first year in business when it produced
325,000 units. Revenue of $450,000 was generated by the sale of
180,000 frisbees.
Particulars
Variable cost
Fixed cost
Production
Direct material
$ 1,50,000
Direct labor
$ 1,00,000
Overhead
Selling and administrative
a. What is the variable production cost per unit?
b. What is the total contribution margin per unit?
c. Prepare a variable costing income statement.
$75,000
$ 1,12,500
$ 90,000
$ 1,00,000
6) 16% -Given the following data for operation departments A and B, prepare a schedule
using the direct and step method of allocation to allocate service department costs to the
operating departments and show total cost for department A and B.
Department
Costs
# of Employees
Square Feet
Operating Dept A
$1600
80
200
Operating Dept B
$1300
120
300
Maintenance
$3,000
100
100
Payroll
$4,000
100
100
For the step method, begin with the maintenance department.
Chapter 18 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 18 - Define price elasticity of demand. Give an example...Ch. 18 - What are the features of a perfectly competitive...Ch. 18 - How do you calculate the markup on cost of goods...Ch. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - What is price discrimination? Is it legal?Ch. 18 - Prob. 8DQCh. 18 - Prob. 9DQCh. 18 - Suppose that Alpha Company has four product lines,...
Ch. 18 - How does absorption costing differ from variable...Ch. 18 - What are some advantages and disadvantages of...Ch. 18 - Prob. 13DQCh. 18 - Prob. 14DQCh. 18 - Describe the product life cycle. How do unit-level...Ch. 18 - Ventana Window and Wall Treatments Company...Ch. 18 - Kaune Food Products Company manufactures canned...Ch. 18 - Pattison Products, Inc., began operations in...Ch. 18 - Refer to Cornerstone Exercise 18.3. Required: 1....Ch. 18 - Saginaw Company is a garden products wholesale...Ch. 18 - Iliff, Inc., produces and sells two types of...Ch. 18 - Iliff, Inc., produces and sells two types of...Ch. 18 - Refer to Cornerstone Exercise 18.6. Required: 1....Ch. 18 - Budgeted unit sales for the entire countertop oven...Ch. 18 - Prob. 10ECh. 18 - Prob. 11ECh. 18 - Prob. 12ECh. 18 - Prob. 13ECh. 18 - Many different businesses employ markup on cost to...Ch. 18 - Flaherty, Inc., has just completed its first year...Ch. 18 - During its first year of operations, Snobegon,...Ch. 18 - Prob. 17ECh. 18 - Otero Fibers, Inc., specializes in the manufacture...Ch. 18 - Data for Torleson Company are as follows:...Ch. 18 - Eastman, Inc., manufactures and sells three...Ch. 18 - Prob. 21ECh. 18 - The following information pertains to three...Ch. 18 - Thebes Company had the following information: What...Ch. 18 - Banwood Company has the following information for...Ch. 18 - Jasmine Companys expected sales were 2,000 units...Ch. 18 - Prob. 26PCh. 18 - Snyder Company produced 90,000 units during its...Ch. 18 - The following information pertains to Vladamir,...Ch. 18 - Jellison Company had the following operating data...Ch. 18 - San Mateo Optics, Inc., specializes in...Ch. 18 - Haysbert Company provides management services for...Ch. 18 - Sulert, Inc., produces and sells gel-filled ice...Ch. 18 - Prob. 33PCh. 18 - Dana Baird was manager of a new Medical Supplies...Ch. 18 - Bill Fremont, division controller and CMA, was...Ch. 18 - Dantrell Palmer has just been appointed manager of...Ch. 18 - Prob. 37PCh. 18 - Porter Insurance Company has three lines of...Ch. 18 - Porter Insurance Company has three lines of...Ch. 18 - Olin Company manufactures and distributes...Ch. 18 - Shannon, Inc., has two divisions. One produces and...Ch. 18 - Prob. 42P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Don't use ai please give me answer general accounting questionarrow_forwardFind True options. Sub. is Financial Account Questionsarrow_forward1)18-% - Cost Volume Profit-Show your calculations, how you arrived at your answer. A company has a selling price of $30 per unit, variable costs of $10 per unit and fixed costs of $50,000. a. 4% - What quantity must be sold to earn a profit of $80,000? b. 2% - What is the firm's total contribution margin at breakeven? c. 4% - How much revenue is needed to make an after-tax profit of $140,000? Assume a tax rate of 10%. d. 4% - Assume we have been selling 14,000 units. What is the net income if there is a 10% increase in units sold? e. 4% - By how much can fixed cost increase, if the firm increases its sales price by $5 and wants to make a profit of $50,000 by selling 10,000 units?arrow_forward
- Best options please with explanationarrow_forwardThe Talley Corporation had a taxable income of $365,000 from operations after all operating costs but before: (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes. a. What is the firm's taxable income? b. What is it marginal tax rate? c. What is its tax expense? d. What is its after-tax income?arrow_forwardHi can you please solve this? if yes then please with explanation. subject is general accountarrow_forward
- 4) 10% - A) 5% -For the year 2024, the marketing managers project semi-annual sales of 90,000 for product A, 50,000 for product B, and 60,000 for product C. Average selling prices are estimated at $4 per product A, $6 per product B and $5 for product C. Prepare a revenue budget for the year ending December 31, 2024. B) 5% - The company begins 2024 with 100,000 finished units of A in inventory. The vice president of operations requests that ending inventory on December 31 of product A, be not less that 70,000 units. Based on sales projections of 100,000 units, prepare a production budget for product A for 2024.arrow_forwardCost Account Tutor helparrow_forwardQuestion:Cost Account Freeze Frame Camera Shop uses the lower-of-cost-or-net realizable value for its inventory. The following data are available at December 31. Item Units Unit Cost Market Value Cameras: Minolta 7 $ 174 $ 153 Cano 10 141 180 Light meters: Vivitar 15 132 108 Kodak 19 118 135 Determine the amount of the ending inventory by applying the lower-of- cost-o-net realizable value basis.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY