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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Granada Company uses the weighted-average method in its process costing system. The first processing department, the Mixing Department, started the month with 20,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $32,000. An additional 100,000 units were started into production during the month and 95,000 units were completed in the Mixing Department and transferred to the next processing department. There were 25,000 units in the ending work-in-process inventory of the Mixing Department that were 30% complete with respect to conversion costs. A total of $518,000 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? A. $4.89 B. $5.37 C. $4.75 D. $6.21

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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