Absorption Costing method: Under absorption costing all variable productions costs and fixed manufacturing overhead cost are considered as product costs and all other fixed costs are considered as period costs. The formula for calculation gross profit under Absorption Costing method is as follows: Gross Profit = ( Sales price – Units product cost ) × Units sold a. Produces and sells 2,000 Units: To determine: The Gross profit using the Absorption Costing method, when the production is 2.000 units and sales is 2,000 units

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Answer 1

Question

Chapter 21, Problem S21A.24SE

To determine

Absorption Costing method:

Under absorption costing all variable productions costs and fixed manufacturing overhead cost are considered as product costs and all other fixed costs are considered as period costs. The formula for calculation gross profit under Absorption Costing method is as follows:

$Gross Profit = (Sales price – Units product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

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Answer 2

Question

Chapter 21, Problem S21A.24SE

To determine

Absorption Costing method:

Under absorption costing all variable productions costs and fixed manufacturing overhead cost are considered as product costs and all other fixed costs are considered as period costs. The formula for calculation gross profit under Absorption Costing method is as follows:

$Gross Profit = (Sales price – Units product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

Expert Solution & Answer

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Answer 3

Question

Chapter 21, Problem S21A.24SE

To determine

Absorption Costing method:

Under absorption costing all variable productions costs and fixed manufacturing overhead cost are considered as product costs and all other fixed costs are considered as period costs. The formula for calculation gross profit under Absorption Costing method is as follows:

$Gross Profit = (Sales price – Units product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem S21A.24SE

To determine

Absorption Costing method:

Under absorption costing all variable productions costs and fixed manufacturing overhead cost are considered as product costs and all other fixed costs are considered as period costs. The formula for calculation gross profit under Absorption Costing method is as follows:

$Gross Profit = (Sales price – Units product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

Expert Solution & Answer

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Answer 5

Chapter 21, Problem S21A.24SE

To determine

Absorption Costing method:

Under absorption costing all variable productions costs and fixed manufacturing overhead cost are considered as product costs and all other fixed costs are considered as period costs. The formula for calculation gross profit under Absorption Costing method is as follows:

$Gross Profit = (Sales price – Units product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

Answer 6

Chapter 21, Problem S21A.24SE

To determine

Absorption Costing method:

Under absorption costing all variable productions costs and fixed manufacturing overhead cost are considered as product costs and all other fixed costs are considered as period costs. The formula for calculation gross profit under Absorption Costing method is as follows:

$Gross Profit = (Sales price – Units product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2.000 units and sales is 2,000 units

Answer 7

Chapter 21, Problem S21A.24SE

To determine

Absorption Costing method:

Under absorption costing all variable productions costs and fixed manufacturing overhead cost are considered as product costs and all other fixed costs are considered as period costs. The formula for calculation gross profit under Absorption Costing method is as follows:

$Gross Profit = (Sales price – Units product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2.000 units and sales is 2,000 units

Answer 8

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

Answer 9

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

Answer 10

To determine

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

Answer 11

To determine

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

Answer 12

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Answer 13

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Answer 14

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Answer 15

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b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

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Chapter 21 Solutions

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b. Produces 2,500 units and sells 2,000 units: To determine: The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

b. Produces 5,000 units and sells 2,000 units: To determine: The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units

Want to see the full answer?

Chapter 21 Solutions

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 2,500 units and sales is 2,000 units

b. Produces 5,000 units and sells 2,000 units:

To determine:

The Gross profit using the Absorption Costing method, when the production is 5,000 units and sales is 2,000 units