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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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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Check out a sample textbook solution

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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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Check out a sample textbook solution

See solution

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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Check out a sample textbook solution

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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

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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