Variable Costing Income StatementOn April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept:Joplin CompanyAbsorption Costing Income StatementFor the Month Ended April 30Sales (5,600 units)Cost of goods sold:Cost of goods manufactured (6,600 units)Inventory, April 30 (900 units)Total cost of goods soldGross profitSelling and administrative expensesOperating incomeVariable cost of goods sold:$138,600(18,900)Fixed costs:$162,400If the fixed manufacturing costs were $30,492 and the fixed selling and administrative expenses were $12,600, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.Joplin CompanyVariable Costing Income StatementFor the Month Ended April 30(119,700)$42,700(25,720)$16,980

The absorption costing income statement assumes that fixed manufacturing costs are included in the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 4,800 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $27.00 Direct labor Fixed factory overhead Variable factory overhead This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. X HAAL Open spreadsheet 18.90 Absorption costing $ Variable costing $ 5.20 4.60 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, the number of units and the unit manufacturing costs were as follows: DATA Units in the finished goods inventory Direct materials Direct labor Fixed factory overhead Variable factory overhead REQUIRED: 5,000 $26.70 13.20 5.30 4.70 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells show in the orange cells. Transfer amounts to CNOWv2 for grading Absorption costing Variable costing Cost of Finished Goods Formulas
The ABC Company acquired 90% of the outstanding shares of XYZ Company, a foreign subsidiary, on September 10, 2022. The fair value of the assets of XYZ was the same as their carrying amount except for land whose the fair value was $50,000 greater than its carrying amount of $600,000. Consolidated financial statements are prepared at year-end December 31, 2022. The following rates of exchange have been identified: September 10, 2022 $1.62:P1 December 31, 2022 $1.56:P1 Average rate for the year ended December 31, 2022 $1.60:P1 Average rate for the year ended September 10 to December 31, 2022 $1.58:P1 Round off final answers to the nearest peso. How much is the land to be presented in the consolidated financial statements? Group of answer choices P411,392 P401,235 P406,250 P416,667
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Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 1,800 units and sold 1,500 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1 Sales $390,000 Variable cost of goods sold: Variable cost of goods manufactured $225,000 Inventory, March 31 (37,500) Total variable cost of goods sold (187,500) Manufacturing margin $202,500 Total variable selling and administrative expenses (46,500) Contribution margin $156,000 Fixed costs: Fixed manufacturing costs $102,600 Fixed selling and administrative expenses 31,500 Total fixed costs (134,100) Operating income $21,900 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing…
Absorption Costing Income Statement On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept: Sales (90,000 units) $1,530,000 Variable cost of goods sold: Variable cost of goods manufactured (110,000 units x $12 per unit) $1,320,000 Less ending inventory (20,000 units x $12 per unit) 240,000 Variable cost of goods sold 1,080,000 Manufacturing margin $450,000 Variable selling and administrative expenses 15,000 Contribution margin $435,000 Fixed costs: Fixed manufacturing costs $49,500 Fixed selling and administrative expenses 28,000 77,500 Income from operations $357,500 a. Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Tudor Manufacturing Co. Income Statement-Absorption Costing For the Month Ended June 30 Sales Cost of goods sold: Cost of goods manufactured Less ending inventory…
On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,200 units and sold 2,800 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1 Sales $560,000 Variable cost of goods sold: Variable cost of goods manufactured $307,200 Inventory, March 31 (38,400) Total variable cost of goods sold (268,800) Manufacturing margin $291,200 Total variable selling and administrative expenses (67,200) Contribution margin $224,000 Fixed costs: Fixed manufacturing costs $140,800 Fixed selling and administrative expenses 44,800 Total fixed costs (185,600) Operating income $38,400 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing $ Absorption costing $
Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 5,300 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials Direct labor Fixed factory overhead $35.00 13.80 6.30 Variable factory overhead 5.50 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing Variable costing
Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc.Absorption Costing Income StatementFor the Year Ended December 31 Sales $1,200,000 Cost of goods sold: Cost of goods manufactured $800,000 Ending inventory (200,000) Total cost of goods sold (600,000) Gross profit $600,000 Selling and administrative expenses (260,000) Operating income $340,000 Variable Statement Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. This type of income statement includes a computation of manufacturing margin. Saxon, Inc.Variable Costing Income StatementFor the Year Ended December 31 Sales $1,200,000 Variable cost of goods sold: Variable cost of goods manufactured $560,000 Ending inventory (140,000) Total variable cost of goods sold (420,000) Manufacturing…
Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $30 Direct labor 18 Fixed factory overhead Variable factory overhead Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept Absorption costing Variable costing neck My Work 22 14
On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept: Line Item Description Amount Amount Sales (13,400 units) $750,400 Variable cost of goods sold: Variable cost of goods manufactured $343,200 Inventory, October 31 (2,200 units) (48,400) Total variable cost of goods sold (294,800) Manufacturing margin $455,600 Variable selling and administrative expenses (201,000) Contribution margin $254,600 Fixed costs: Fixed manufacturing costs $62,400 Fixed selling and administrative expenses 53,600 Total fixed costs (116,000) Operating income $138,600 Prepare an income statement under absorption costing. Round all final answers to whole dollars. Maryville Equipment CompanyAbsorption Costing Income StatementFor the Month Ended October 31 Line Item Description Amount Amount $Sales Cost of goods sold:…
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,300 units and sold 2,800 units. The following income statement was prepared, based on the variable costing concept: Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, March 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Variable costing Absorption costing $508,200 (77,000) $231,000 72,800 $896,000 (431,200) $464,800 (106,400) $358,400 (303,800) $54,600 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

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