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 prepare: The variable costing income statement for each year.

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Answer 1

Question

Chapter 22, Problem 22.6AP

(a)

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 prepare: The variable costing income statement for each year.

(b)

To determine

To prepare: The absorption costing income statement for each year.

(c)

To determine

The reconciliation of each year net income under the two costing approaches.

(d).

To determine

To explain: The effects of production and sales on net income under 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

Answer 2

Question

Chapter 22, Problem 22.6AP

(a)

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 prepare: The variable costing income statement for each year.

(b)

To determine

To prepare: The absorption costing income statement for each year.

(c)

To determine

The reconciliation of each year net income under the two costing approaches.

(d).

To determine

To explain: The effects of production and sales on net income under the two costing approaches.

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Answer 3

Question

Chapter 22, Problem 22.6AP

(a)

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 prepare: The variable costing income statement for each year.

(b)

To determine

To prepare: The absorption costing income statement for each year.

(c)

To determine

The reconciliation of each year net income under the two costing approaches.

(d).

To determine

To explain: The effects of production and sales on net income under the two costing approaches.

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Answer 4

Question

Chapter 22, Problem 22.6AP

(a)

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 prepare: The variable costing income statement for each year.

(b)

To determine

To prepare: The absorption costing income statement for each year.

(c)

To determine

The reconciliation of each year net income under the two costing approaches.

(d).

To determine

To explain: The effects of production and sales on net income under the two costing approaches.

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Answer 5

Chapter 22, Problem 22.6AP

(a)

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 prepare: The variable costing income statement for each year.

(b)

To determine

To prepare: The absorption costing income statement for each year.

(c)

To determine

The reconciliation of each year net income under the two costing approaches.

(d).

To determine

To explain: The effects of production and sales on net income under the two costing approaches.

Answer 6

Chapter 22, Problem 22.6AP

(a)

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 prepare: The variable costing income statement for each year.

Answer 7

Chapter 22, Problem 22.6AP

(a)

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 prepare: The variable costing income statement for each year.

Answer 8

(b)

To determine

To prepare: The absorption costing income statement for each year.

Answer 9

(b)

To determine

To prepare: The absorption costing income statement for each year.

Answer 10

(c)

To determine

The reconciliation of each year net income under the two costing approaches.

Answer 11

(c)

To determine

The reconciliation of each year net income under the two costing approaches.

Answer 12

(d).

To determine

To explain: The effects of production and sales on net income under the two costing approaches.

Answer 13

(d).

To determine

To explain: The effects of production and sales on net income under the two costing approaches.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 22 - Prob. 1Q Ch. 22 - Prob. 2Q Ch. 22 - Prob. 3Q Ch. 22 - Prob. 4Q Ch. 22 - Prob. 5Q Ch. 22 - Prob. 6Q Ch. 22 - Prob. 7Q Ch. 22 - Prob. 8Q Ch. 22 - 9. “Cost-volume-profit (CVP) analysis is based...Ch. 22 - Prob. 10Q

To prepare: The absorption costing income statement for each year.

The reconciliation of each year net income under the two costing approaches.

To explain: The effects of production and sales on net income under the two costing approaches.

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Chapter 22 Solutions