Question
In: Accounting
2. Below is operating information of Weber Light Aircraft, a company that produces light recreational aircraft....
2. Below is operating information of Weber Light Aircraft, a company that produces light recreational aircraft.
|
Per Aircraft |
Per Month |
|
|
Selling price |
$100,000 |
|
|
Direct materials |
$19,000 |
|
|
Direct labor |
$5,000 |
|
|
Variable manufacturing overhead |
$1,000 |
|
|
Fixed manufacturing overhead |
$70,000 |
|
|
Variable selling and administrative expense |
$10,000 |
|
|
Fixed selling and administrative expense |
$20,000 |
|
January |
February |
March |
|
|
Beginning inventory |
0 |
1 |
0 |
|
Units produced |
2 |
2 |
5 |
|
Units sold |
1 |
3 |
5 |
|
Ending inventory |
1 |
0 |
0 |
a. Compute the unit product cost using variable costing method.
b. Prepare an income statement for January, February and March using variable costing method.
c. Compute the unit product cost using absorption costing method.
d. Prepare an income statement for January, February and March using absorption costing method
e. Explain why both variable and absorption costing generate same income in a particular month, whereas in another month they generate different incomes.
Solutions
ekkarill92 answered 6 months agoRelated Solutions
Below is operating information of Weber Light Aircraft, a company that produces light recreational aircraft. Per...
Below is operating information of Weber Light Aircraft, a
company that produces light recreational aircraft.
Per Aircraft
Per Month
Selling price
$900,000
Direct materials
$250,000
Direct labor
$175,000
Variable manufacturing overhead
$15,000
Fixed manufacturing overhead
$200,000
Variable selling and administrative expense
$50,000
Fixed selling and administrative expense
$70,000
January
February
March
Beginning inventory
0
0
2
Units produced
2
4
3
Units sold
2
2
5
Ending inventory
0
2
0
1. Assume that the company uses variable
costing:
a....
Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft...
Operating Budget, Comprehensive Analysis
Allison Manufacturing produces a subassembly used in the
production of jet aircraft engines. The assembly is sold to engine
manufacturers and aircraft maintenance facilities. Projected sales
in units for the coming 5 months follow:
January
40,000
February
50,000
March
60,000
April
60,000
May
62,000
The following data pertain to production policies and
manufacturing specifications followed by Allison Manufacturing:
Finished goods inventory on January 1 is 32,000 units, each
costing $166.06. The desired ending inventory for each...
Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft...
Operating Budget, Comprehensive Analysis
Allison Manufacturing produces a subassembly used in the
production of jet aircraft engines. The assembly is sold to engine
manufacturers and aircraft maintenance facilities. Projected sales
in units for the coming 5 months follow:
January
40,000
February
50,000
March
60,000
April
60,000
May
62,000
The following data pertain to production policies and
manufacturing specifications followed by Allison Manufacturing:
Finished goods inventory on January 1 is 32,000 units, each
costing $166.06. The desired ending inventory for each...
Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft...
Operating Budget, Comprehensive Analysis
Allison Manufacturing produces a subassembly used in the
production of jet aircraft engines. The assembly is sold to engine
manufacturers and aircraft maintenance facilities. Projected sales
in units for the coming 5 months follow:
January
40,000
February
50,000
March
60,000
April
60,000
May
62,000
The following data pertain to production policies and
manufacturing specifications followed by Allison Manufacturing:
Finished goods inventory on January 1 is 32,000 units, each
costing $166.06. The desired ending inventory for each...
The following information is from the 2017 annual report of Weber Corporation, a company that supplies...
The following information is from the 2017 annual report of
Weber Corporation, a company that supplies manufactured parts to
the household appliance industry. Average total assets $ 24,500,000
Average interest-bearing debt 10,000,000 Average other liabilities
2,250,000 Average shareholders' equity 12,250,000 Sales 49,000,000
Interest expense 800,000 Net income 2,450,000 Required: Compute
Weber Corporation’s return on assets (ROA) for 2017 using a
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Compute the profit margin and asset turnover components of...
Chapter 7 Question 2: High Country, Inc., produces and sells many recreational products. The company has...
Chapter 7 Question 2:
High Country, Inc., produces and sells many recreational
products. The company has just opened a new plant to produce a
folding camp cot that will be marketed throughout the United
States. The following cost and revenue data relate to May, the
first month of the plant’s operation:
Beginning inventory
0
Units produced
44,000
Units sold
39,000
Selling price per unit
$
75
Selling and administrative expenses:
Variable per unit
$
3
Fixed (per month)
$
561,000...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
Required information
[The following information applies to the questions
displayed below.]
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2016
2017
Sales ($46 per unit)
$
1,104,000
$
2,024,000
Cost of goods sold ($31 per unit)
744,000
1,364,000
Gross margin
360,000
660,000
Selling and administrative expenses
287,000
322,000
Net income
$
73,000
$
338,000
Additional Information
Sales and production data for these first two years
follow.
2016
2017...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
Required information
[The following information applies to the questions
displayed below.]
Dowell Company produces a single product. Its income statements
under absorption costing for its first two years of operation
follow.
2018
2019
Sales ($44 per unit)
$
1,012,000
$
1,892,000
Cost of goods sold ($29 per unit)
667,000
1,247,000
Gross margin
345,000
645,000
Selling and administrative expenses
291,750
336,750
Net income
$
53,250
$
308,250
Additional Information
Sales and production data for these first two years
follow.
2018
2019...
2.) A process produces cable for the local telephone company. When the process is operating correctly,...
2.) A process produces cable for the local telephone company.
When the process is operating correctly, cable diameter follows a
normal distribution with mean 4 inches. A random sample of 5pieces
of cable found diameters with a sample mean of 3 inches and a
sample standard deviation of 5÷9 inches.
a) State your hypothesis H0 and H1 claiming that the process is
operating correctly.
b) State the decision rule, sample statistics, table value and test
statistic in the same order...
Required information [The following information applies to the questions displayed below.] Marin Company produces two software...
Required information [The following information applies to the
questions displayed below.] Marin Company produces two software
products (Cloud-X and Cloud-Y) in two separate departments (A and
B). These products are highly regarded network maintenance
programs. Cloud-X is used for small networks and Cloud-Y is used
for large networks. Marin is known for the quality of its products
and its ability to meet dates promised for software upgrades.
Department A produces Cloud-X, and department B produces Cloud-Y.
The production departments are...
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