Managerial Accounting
15th Edition
ISBN: 9780078025631
Author: Ray H Garrison, Eric Noreen, Peter C. Brewer Professor
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 6, Problem 1AE
| A | B | C | D | E | |
| 1 | Chapter 6: Applying Excel | ||||
| 2 | |||||
| 3 | Data | ||||
| 4 | Selling price per unit | $50 | |||
| 5 | |||||
| 6 | Variable per unit produced | ||||
| 7 | Direct materials | $11 | |||
| 8 | Direct labour | ||||
| 9 | Variable manufacturing |
$6 | |||
| 10 | Fixed manufacturing overhead per year | $120,000 | |||
| 11 | Selling and administrative expenses | ||||
| 12 | Variable per unit sold | $4 | |||
| 13 | Fixed per year | $70 000 | |||
| 14 | |||||
| 15 | Year 1 | Year 2 | |||
| 16 | Units in beginning inventory | 0 | ? | ||
| 17 | Units produced doing the year | 10 000 | 6 000 | ||
| 18 | Units sold doing the year | 8 000 | 8 000 | ||
| 19 | |||||
| 20 | Enter a formula into each of the cells marked with a ? below |
||||
| 21 | Review Problem 1: Contrasting Variable and Absorption Costing | ||||
| 22 | |||||
| 23 | Compute the Ending Inventory | ||||
| 24 | Year 1 | Year 2 | |||
| 25 | Units in beginning inventory | 0 | ? | ||
| 26 | Units produced doing the year | ? | ? | ||
| 27 | Units sold doing the year | ? | ? | ||
| 28 | Units in ending inventory | ? | ? | ||
| 29 | |||||
| 30 | Compute the Absorption Costing Unit Product Cost | ||||
| 31 | Year 1 | Year 2 | |||
| 32 | Direct materials | ? | ? | ||
| 33 | Direct labour | ? | ? | ||
| 34 | Variable manufacturing overhead | ? | ? | ||
| 35 | Fixed manufacturing overhead | ? | ? | ||
| 36 | Absorption costing unit product cost | ? | ? | ||
| 37 | |||||
| 38 | Construct the Absorption Costing Income Statement | ||||
| 39 | Year 1 | Year 2 | |||
| 40 | Sales | ? | ? | ||
| 41 | Cost of goods sold | ? | ? | ||
| 42 | Gross margin | ? | ? | ||
| 43 | Selling and administrative expenses | ? | ? | ||
| 44 | Net operating income | ? | ? | ||
| 45 | |||||
| 46 | Compute the Variable Costing Unit Product Cost | ||||
| 47 | Year 1 | Year 2 | |||
| 48 | Direct materials | ? | ? | ||
| 49 | Direct labour | ? | ? | ||
| 50 | Variable manufacturing overhead | ? | ? | ||
| 51 | Variable costing unit product cost | ? | ? | ||
| 52 | |||||
| 53 | Construct the Variable Costing Income Statement | ||||
| 54 | Year 1 | Year 2 | |||
| 55 | Sales | ? | ? | ||
| 56 | Variable expenses | ||||
| 57 | Variable cost of goods sold | ? | ? | ||
| 58 | Variable selling and administrative expenses | ? | ? | ? | ? |
| 59 | Contribution margin | ? | ? | ||
| 60 | Fixed expenses | ||||
| 61 | Fixed manufacturing overhead | ? | ? | ||
| 62 | Fixed selling and administrative expenses | ? | ? | ? | ? |
| 63 | Net operating income | ? | ? | ||
You should proceed to the requirements below only after completing your worksheet. The LIFO inventory flow assumption is used throughout this problem.
Required:
1. Check your worksheet by changing the units sold in the Data to 6,000 for Year 2. The cost of goods sold under absorption costing for Year 2 should now be $24-0.000. If it isn't check cell C41. The formula in this cell should be =IF(C26
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A
1 Chapter 7: Applying Excel
2
3 Data
4 Selling price per unit
5 Manufacturing costs:
6
7
8
Variable per unit produced:
Direct materials
Direct labor
Variable manufacturing overhead
9
10 Fixed manufacturing overhead per year
11 Selling and administrative expenses:
12 Variable per unit sold
13
Fixed per year
14
15
16 Units in beginning inventory
17 Units produced during the year
18 Units sold during the year
25 Units in beginning inventory
26 Units produced during the year
27 Units sold during the year
28 Units in ending inventory
29
30 Compute the Absorption Costing Unit Product Cost
31
32 Direct materials
33 Direct labor
34 Variable manufacturing overhead
35 Fixed manufacturing overhead
36 Absorption costing unit product cost
37
19
20 Enter a formula into each of the cells marked with a ? below
21 Review Problem 1: Contrasting Variable and Absorption Costing
22
23 Compute the Ending Inventory
24
46 Compute the Variable Costing Unit Product Cost
47
48 Direct materials
49 Direct labor…
Subject- account
A
1 Original Data:
2
3
4
5
6
7
8
9
10
11
12 Part 1
13
14
15
16
Estimated MOH
Estimated DLHS
28
29
B
Selling price per unit
Direct materials per unit
Direct labour per unit
Direct labour-hours per unit
Estimated annual productio
POR:
17
18 Sales
19 Less product costs
20
21
22
23 Total product costs
24 Product margin
Direct materials
Direct labour
Manufacturing overhead
25 Units produced and sold:
26 Product margin per unit
27
$1,350,000
112,500
High Grade
$212.50
$83.50
$30.00
1.00
75,000
High Grade
D
Professional
$387.00
$212.00
$45.00
1.50
25,000
per DLHs
Professional
Total
Chapter 6 Solutions
Managerial Accounting
Ch. 6.A - Prob. 1ECh. 6.A - EXERCISE 6A-2 Super-Variable Costing and Variable...Ch. 6.A - Prob. 3ECh. 6.A - PROBLEM 6A-4 Super-Variable Costing and Variable...Ch. 6.A - Prob. 5PCh. 6 - Prob. 1QCh. 6 - Are selling and administrative expenses treated as...Ch. 6 - Explain how fixed manufacturing overhead costs are...Ch. 6 - What are the arguments in favor of treating fixed...Ch. 6 - What are the arguments in favor of treating fixed...
Ch. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Under absorption costing, how is it possible to...Ch. 6 - Prob. 10QCh. 6 - Prob. 11QCh. 6 - What costs are assigned to a segment under the...Ch. 6 - Distinguish between a trace able fixed cost and a...Ch. 6 - Explain how the contribution margin differs from...Ch. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Should a company allocate its common feed costs to...Ch. 6 - A B C D E 1 Chapter 6: Applying Excel 2 3 Data 4...Ch. 6 - A B C D E 1 Chapter 6: Applying Excel 2 3 Data 4...Ch. 6 - A B C D E
1 Chapter 6: Applying...Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 2F15Ch. 6 - Prob. 3F15Ch. 6 - Prob. 4F15Ch. 6 - Prob. 5F15Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 7F15Ch. 6 - Prob. 8F15Ch. 6 - Prob. 9F15Ch. 6 - Prob. 10F15Ch. 6 - Prob. 11F15Ch. 6 - Prob. 12F15Ch. 6 - Prob. 13F15Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 15F15Ch. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - EXERCISE 6-6 Variable and Absorption Costing Unit...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - EXERCISE 6-9 Variable and Absorption Costing Unit...Ch. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - EXERCISE 6—15 Absorption Costing Unit Product Cost...Ch. 6 - EXERCISE 6-16 Working with a Segmented Income...Ch. 6 - Prob. 17ECh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - PROBLEM 6—21 Segment Reporting and Decision-Making...Ch. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - PROBLEM 6-24 Companywide and Segment Break-Even...Ch. 6 - Prob. 25PCh. 6 - Prob. 26PCh. 6 - PROBLEM 6-27 Incentives Created by Absorption...Ch. 6 - Prob. 28PCh. 6 - Prob. 29CCh. 6 - Prob. 30C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 8: Applying Excel 2 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 Variable per unit produced: 7 8 9 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold Fixed per year 13 14 15 16 17 18 Units in beginning inventory Units produced during the year Units sold during the year Net operating income $ $ $ $ $ B Yes O No 399 142 74 39 170,000 Year 1 Net operating income 3 $ 98,000 O Yes No 0 3,400 2,900 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? ✔Units were left over from the previous year. C Year 2 2,500 2,900 3. Make a note of the absorption costing net operating income (loss) in Year 2. (b) What is the net operating income (loss) in…arrow_forward2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 6: Applying Excel 2 ook 3 Data rint 456 Selling price per unit Manufacturing costs: Variable per unit produced: B C $ 296 7 Direct materials $ 104 rences 8 9 10 11 B12345 Direct labor $ 76 Variable manufacturing overhead $ 26 Fixed manufacturing overhead per year $ 184,800 Selling and administrative expenses: Variable per unit sold $ 9 Fixed per year $ 77,000 Units in beginning inventory 16 Units produced during the year 17 Units sold during the year 18 Year 1 Year 2 0 3,300 2,800 3,000 3,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? Net operating lossarrow_forwardBody Time, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows: (Click the icon to view the data.) The weight-lifting craze suggests that Body Time can sell enough of either Model 9 or Model 14 to keep the plant operating at full capacity. Both products are processed through the same production departments. Read the requirements. Before determining which products to produce, let's calculate the contribution margin per unit and the contribution margin per machine hour for each machine. (Reduce the fixed manufacturing overhead to the lowest possible ratio of machine hours in order to calculate the contribution margin per machine hour. Example: 8:4 would be 2:1. Enter the amounts to the nearest cent.) = Contribution margin per unit = Contribution margin per machine hour Model 9 Model 14arrow_forward
- 1- Chapter 1 Assignment i 1 of 15 € a 19 2 Total manufacturing overhead cost Manufacturing overhead per unit 4# Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Okay 3 4 Y A Saved 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) & LO 5 * Help 6 Save & Exit 7 Average Cost per Unit $7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 You Check my work 8 Submit 9 } 11 0 darrow_forwardAverage Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. For financial accounting purposes, what is the total amount of perlod costs incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units? 1. Total amount of product costs 2. Total amount of period costs incurred 3. Total amount of product costs 4. Total amount of period costsarrow_forwardA-6arrow_forward
- Indicator ' A 16 17 18 19 20 (1) $126,000 105,000 84,000 $200,000 D (2) $150,000 128,000 22,000 $138,000 E 1 2 Required: 3 Determine the missing amount for each separate situation involving work in process cost flows. 4 5 6 Total manufacturing costs 7 Work in process inventory, beginning 8 Work in process inventory, ending 9 Cost of goods manufactured 10 11 12 13 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 14 Nothing in this area will be graded, but it will be submitted with your assignment. 15 (3) $217,000 32,000 185,000 $237,000 F G H 1 Jarrow_forwardA1 fx Chapter 10: Applying Excel A В C E F 1 Chapter 10: Applying Excel 2 3 Data 4 Exhibit 10-1: Standard Cost Card Iпрuts Standard Quantity 2.9 pounds Standard Price 6 Direct materials 7 Direct labor 8 Variable manufacturing overhead $4.00 per pound $22.00 per hour $6.00 per hour 0.60 hours 0.60 hours 9. 10 Actual results: Actual output 11 2,000 units $7,140 Actual Quantity 6,500 pounds 12 Actual variable manufacturing overhead cost Actual price $3.80 per pound $21.60 per hour 13 14 Actual direct materials cost 15 Actual direct labor cost 1,050 hours 16 17 Enter a formula into each of the cells marked with a ? below 18 Main Example: Chapter 10 19 20 Exhibit 10-4: Standard Cost Variance Analysis- Direct Materials 21 Standard Quantity Allowed for the Actual Output, at Standard Price 22 Actual Quantity of Input, at Standard Price 23 Actual Quantity of Input, at Actual Price 5,800 pounds x 6,500 pounds x 6,500 pounds x $4.00 per pound = $4.00 per pound = $3.80 per pound = $23,200 $26,000…arrow_forwardPlease do not give solution in image format thankuarrow_forward
- Hansha benarrow_forward云 00 y 2 M c P E. y!m ME A N N C. A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignme... YouTube Maps 9 Review HW 3.2 M Gmail Chapter 20 Homework Equivalent Units of Production: Average Cost Method the ren Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: d ui anc Drawing Department Winding Department Work in process, July 1 1,950 units, 65% completed 600 units, 35% completed 950 Completed and transferred to next 31,200 units 30,400 units processing department during July Work in process, July 31 1,500 units, 65% completed 1,000 units, 35% completed Each department uses the average cost method. its of a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. fwho. its of p of proc Whole units 32,700 V units Equivalent units of production 31,410 X units b. Determine the number of…arrow_forwardLarner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Rates Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory ME $ 5.00 per direct labor-hour $ 4.00 per machine-hour $ 60.00 per setup $ 100.00 per order $ 120.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: 378 852 Direct materials cost per unit Direct labor cost per unit $ 3.50 $ 20.00 $ 3.75 Number of units produced per year $9.00 400 2,000 Direct labor-hours Machine-hours Machine setups Production orders Chinmante Total Expected Activity 378 852 1,200 40 2,800 20 4 4 A 7 7 4arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License