Variable Costing Managers frequently use variable costing for internal purposes for taking decision making. The cost of goods manufactured includes direct materials, direct labor, and variable factory overhead. Fixed factory overhead considered as period (fixed) expense. To Determine: The manufacturing margin for the month of January of Company L.

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Answer 1

Question

Chapter 20, Problem 20.1APE

(a)

To determine

Variable Costing

Managers frequently use variable costing for internal purposes for taking decision making. The cost of goods manufactured includes direct materials, direct labor, and variable factory overhead. Fixed factory overhead considered as period (fixed) expense.

To Determine: The manufacturing margin for the month of January of Company L.

(b)

To determine

The contribution margin for the month of January of Company L.

(c)

To determine

The Income from operations for the month of January for Company L.

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INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. 1. A business donated rent-free office space to the organization that would normally rent for $35,600 a year. 2. A fund drive raised $188,000 in cash and $106,000 in pledges that will be paid next year. A state government grant of $156,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $209,160. At year-end, an additional $16,600 of salaries and fringe benefits were accrued. 4. A donor pledged $106,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,860. 5. Office equipment was purchased for $12,600. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $10,200 was donated by a local office…

Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor unges Description 920 hours $27 per hour 190 hours for Job 101 340 hours for Job 102 Factory supervision Production engineer Factory Janitorial work Selling, general, and administrative salaries Total payroll costs Required: 390 hours for Job 103 Total Cost $ 5,130 9,180 10,530 $ 24,840 4,350 7,100 1,200 8,800 $ 46,298 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet A B Record Fairfield Company's payroll costs to be paid at a later date. Note Enter debits before credits. S.No Date 1 Account Title Debit Credit

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Answer 2

Question

Chapter 20, Problem 20.1APE

(a)

To determine

Variable Costing

Managers frequently use variable costing for internal purposes for taking decision making. The cost of goods manufactured includes direct materials, direct labor, and variable factory overhead. Fixed factory overhead considered as period (fixed) expense.

To Determine: The manufacturing margin for the month of January of Company L.

(b)

To determine

The contribution margin for the month of January of Company L.

(c)

To determine

The Income from operations for the month of January for Company L.

Expert Solution & Answer

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Answer 3

Question

Chapter 20, Problem 20.1APE

(a)

To determine

Variable Costing

Managers frequently use variable costing for internal purposes for taking decision making. The cost of goods manufactured includes direct materials, direct labor, and variable factory overhead. Fixed factory overhead considered as period (fixed) expense.

To Determine: The manufacturing margin for the month of January of Company L.

(b)

To determine

The contribution margin for the month of January of Company L.

(c)

To determine

The Income from operations for the month of January for Company L.

Expert Solution & Answer

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Answer 4

Question

Chapter 20, Problem 20.1APE

(a)

To determine

Variable Costing

Managers frequently use variable costing for internal purposes for taking decision making. The cost of goods manufactured includes direct materials, direct labor, and variable factory overhead. Fixed factory overhead considered as period (fixed) expense.

To Determine: The manufacturing margin for the month of January of Company L.

(b)

To determine

The contribution margin for the month of January of Company L.

(c)

To determine

The Income from operations for the month of January for Company L.

Expert Solution & Answer

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Answer 5

Chapter 20, Problem 20.1APE

(a)

To determine

Variable Costing

Managers frequently use variable costing for internal purposes for taking decision making. The cost of goods manufactured includes direct materials, direct labor, and variable factory overhead. Fixed factory overhead considered as period (fixed) expense.

To Determine: The manufacturing margin for the month of January of Company L.

(b)

To determine

The contribution margin for the month of January of Company L.

(c)

To determine

The Income from operations for the month of January for Company L.

Answer 6

Chapter 20, Problem 20.1APE

(a)

To determine

Variable Costing

Managers frequently use variable costing for internal purposes for taking decision making. The cost of goods manufactured includes direct materials, direct labor, and variable factory overhead. Fixed factory overhead considered as period (fixed) expense.

To Determine: The manufacturing margin for the month of January of Company L.

Answer 7

Chapter 20, Problem 20.1APE

(a)

To determine

Variable Costing

Managers frequently use variable costing for internal purposes for taking decision making. The cost of goods manufactured includes direct materials, direct labor, and variable factory overhead. Fixed factory overhead considered as period (fixed) expense.

To Determine: The manufacturing margin for the month of January of Company L.

Answer 8

(b)

To determine

The contribution margin for the month of January of Company L.

Answer 9

(b)

To determine

The contribution margin for the month of January of Company L.

Answer 10

(c)

To determine

The Income from operations for the month of January for Company L.

Answer 11

(c)

To determine

The Income from operations for the month of January for Company L.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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The contribution margin for the month of January of Company L.

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