Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income. Requirement-1: To Prepare: The Income Statement using the Absorption Costing

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Answer 1

Question

Chapter 21, Problem E21.45E

To determine

Concept Introduction:

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Prepare: The Income Statement using the Absorption Costing

To determine

Requirement-2:

To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

To determine

Requirement-3:

To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.

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Brun Company produces its product through two processing departments: Mixing and Baking. Information for the Mixing department follows. Direct Materials Conversion Unit Percent Complete Percent Complete Beginning work in process inventory 7.500 Units started this period 104,500 Units completed and transferred out 100.000 Ending work in process inventory 12.000 100% 25% Beginning work in process inventory Direct materials Conversion $6.800 14.500 $21.300 Costs added this period Drect materials 116,400 Conversion Total costs to account for 1.067,000 1.183.400 $1.204.700 Required 1. Prepare the Mixing department's production cost report for November using the weighted average method Check (1) C$1.000 2. Prepare the November 30 journal entry to transfer the cost of completed units from Mixing to Baking

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Answer 2

Question

Chapter 21, Problem E21.45E

To determine

Concept Introduction:

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Prepare: The Income Statement using the Absorption Costing

To determine

Requirement-2:

To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

To determine

Requirement-3:

To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 21, Problem E21.45E

To determine

Concept Introduction:

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Prepare: The Income Statement using the Absorption Costing

To determine

Requirement-2:

To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

To determine

Requirement-3:

To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem E21.45E

To determine

Concept Introduction:

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Prepare: The Income Statement using the Absorption Costing

To determine

Requirement-2:

To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

To determine

Requirement-3:

To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 21, Problem E21.45E

To determine

Concept Introduction:

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Prepare: The Income Statement using the Absorption Costing

To determine

Requirement-2:

To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

To determine

Requirement-3:

To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.

Answer 6

Chapter 21, Problem E21.45E

To determine

Concept Introduction:

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Prepare: The Income Statement using the Absorption Costing

Answer 7

Chapter 21, Problem E21.45E

To determine

Concept Introduction:

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Prepare: The Income Statement using the Absorption Costing

Answer 8

To determine

Requirement-2:

To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

Answer 9

To determine

Requirement-2:

To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

Answer 10

To determine

Requirement-3:

To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.

Answer 11

To determine

Requirement-3:

To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 21 - For Frank’s Funky Sounds, straight-line...Ch. 21 - Prob. 2QC Ch. 21 - Prob. 3QC Ch. 21 - Prob. 4QC Ch. 21 - Prob. 5QC Ch. 21 - On a CVP graph, the total cost line intersects the...Ch. 21 - If a company increases its sales price per unit...Ch. 21 - Prob. 8QC Ch. 21 - Prob. 9QC Ch. 21 - Prob. 10QC

Requirement-2: To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

Requirement-3: To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.

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Chapter 21 Solutions

Requirement-2:

To Calculate: The Unit Product Cost and the Cost of inventory using the Absorption costing

Requirement-3:

To Show: The Comparison between the cost of ending inventory using the Absorption costing and Variable costing.