Accounting Principles 12E WileyPLUS with Loose-Leaf Print Companion with WileyPLUS Leanring Space Card Set
Accounting Principles 12E WileyPLUS with Loose-Leaf Print Companion with WileyPLUS Leanring Space Card Set
12th Edition
ISBN: 9781119036395
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: Wiley (WileyPLUS Products)
Question
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Chapter 22, Problem 22.15E
To determine

Variable Costing: The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

Absorption Costing: The absorption costing is the method of costing in which all the costs are included that are associated with the manufacturing process of the product.

To determine: (a) The manufacturing cost by variable costing approach.

(b) The total manufacturing costs by absorption costing approach.

(c) The difference in manufacturing costs between the two costing approaches.

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Financial accounting question
During FY 2005 T-REX Manufacturing had total manufacturing costs are $418,000. Their cost of goods manufactured for the year was $448,000. The January 1, 2006 balance of the Work-in-Process Inventory is $49,000. Use this information to determine the dollar amount of the FY 2005 beginning Work-in-Process Inventory. Answer
Cooper Audio Systems produces car sound systems. Estimated sales (in units) are 45,000 in April, 38,000 in May, and 36,500 in June. Each unit is priced at $75. Cooper wants to have 40% of the following month's sales in ending inventory. That requirement was met on April 1. Each sound system requires 4 speakers and 10 feet of wiring. Speakers cost $6 each, and wiring is $0.50 per foot. Cooper wants to have 25% of the following month's production needs in ending raw materials inventory. On April 1, Cooper had 30,000 speakers and 95,000 feet of wire in inventory. What is Cooper's expected sales revenue for May?

Chapter 22 Solutions

Accounting Principles 12E WileyPLUS with Loose-Leaf Print Companion with WileyPLUS Leanring Space Card Set

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