Question

In: Accounting

Question 2 Superman Company, which has only one product, has provided the following data concerning its...

Question 2

Superman Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

RM140

Units in beginning inventory

500

Units produced

12,000

Units sold

11,800

Variable costs per unit:

Direct materials

RM35

Direct labor

RM22

Variable manufacturing overhead

RM18

Variable selling and administrative

RM15

Fixed costs:

Fixed manufacturing overhead

RM80,000

Fixed selling and administrative

RM175,000

The company produces the same number of units every month, although the sales in units vary from month to month. The company’s variable costs per unit and total fixed costs have been constant from month to month.

Required:

(a) Calculate the cost of one unit of product under absorption costing.

(b) Calculate the cost of one unit of product under variable costing.

(c) Calculate Superman’s next year operating income under absorption costing.

(d) Calculate Superman’s next year operating income under variable costing.

Solutions

Expert Solution


Related Solutions

Question 2 Superman Company, which has only one product, has provided the following data concerning its...
Question 2 Superman Company, which has only one product, has provided the following data concerning its most recent month of operations:                                                                                                                                                          Selling price RM140 Units in beginning inventory 500 Units produced 12,000 Units sold 11,800 Variable costs per unit: Direct materials RM35 Direct labor RM22 Variable manufacturing overhead RM18 Variable selling and administrative RM15 Fixed costs: Fixed manufacturing overhead RM80,000 Fixed selling and administrative RM175,000 The company produces the same number of units every month, although the sales in...
Question 3 Beastboy Company, which has only one product, has provided the following data concerning its...
Question 3 Beastboy Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price RM120 Units in beginning inventory 500 Units produced 13,000 Units sold 12,800 Variable costs per unit: Direct materials RM35 Direct labor RM15 Variable manufacturing overhead RM12 Variable selling and administrative RM6 Fixed costs: Fixed manufacturing overhead RM70,000 Fixed selling and administrative RM140,000 The company produces the same number of units every month, although the sales in units...
Question 3 Beastboy Company, which has only one product, has provided the following data concerning its...
Question 3 Beastboy Company, which has only one product, has provided the following data concerning its most recent month of operations:                                                                                                                                                          Selling price RM120 Units in beginning inventory 500 Units produced 13,000 Units sold 12,800 Variable costs per unit: Direct materials RM35 Direct labor RM15 Variable manufacturing overhead RM12 Variable selling and administrative RM6 Fixed costs: Fixed manufacturing overhead RM70,000 Fixed selling and administrative RM140,000 The company produces the same number of units every month, although the sales in...
Packer Company, which has only one product, has provided the following data concerning its most recent...
Packer Company, which has only one product, has provided the following data concerning its most recent month of operations:   Selling price $ 83   Units in beginning inventory 375   Units produced 2,220   Units sold 2,070   Units in ending inventory 525   Variable cost per unit:   Direct materials $ 21   Direct labor $ 18   Variable manufacturing overhead $ 1   Variable selling and administrative $ 12   Fixed costs:   Fixed manufacturing overhead $ 51,060   Fixed selling and administrative $ 6,210 The company produces the same...
Map Company, which has only one product, has provided the following data concerning its most recent...
Map Company, which has only one product, has provided the following data concerning its most recent month of operations:             Selling price............................................... $140 Units in beginning inventory..................... 0 Units produced.......................................... 8,400 Units sold.................................................. 8,200 Units in ending inventory.......................... 200 Variable costs per unit: Direct materials....................................... $42 Direct labor............................................. $32 Variable manufacturing overhead........... $1 Variable selling and administrative......... $8 Fixed costs: Fixed manufacturing overhead................ $280,800 Fixed selling and administrative.............. $98,000             Required:             Prepare an income statement for the month using...
Nesman Company, which has only one product, has provided the following data concerning its most recent...
Nesman Company, which has only one product, has provided the following data concerning its most recent month of operations:   Selling price $ 122   Units in beginning inventory 310   Units produced 6,600   Units sold 6,670   Units in ending inventory 240   Variable cost per unit:   Direct materials $ 48   Direct labor $ 26   Variable manufacturing overhead $ 3   Variable selling and administrative $ 13   Fixed costs:   Fixed manufacturing overhead $ 151,800   Fixed selling and administrative $ 46,690 The company produces the same...
ABC Company, which has only one product, has provided the following data concerning its most recent...
ABC Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $155, Units in beginning inventory 100, Units produced 4,500, Units sold 4,300, Units in ending inventory 300. Variable costs per unit: Direct materials $28, Direct labor $49, Variable manufacturing overhead $7, Variable selling and administrative $7. Fixed costs: Fixed manufacturing overhead $175,500, Fixed selling and administrative $81,700. The company produces the same number of units every month, although the...
Madison Company, which has only one product, has provided the following data concerning its most recent...
Madison Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $166 Units in beginning inventory 600 Units produced 13,200 Units sold 13,350 Variable costs per unit: Direct materials $51 Direct labour $56 Variable manufacturing overhead $5 Variable selling and administrative $13 Fixed costs: Fixed manufacturing overhead $92,400 Fixed selling and administrative $253,650 The company produces the same number of units every month, although the sales in units vary from...
Map Company, which has only one product, has provided the following data concerning its most recent...
Map Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $140 Units in beginning inventory 0 Units produced 7,400 Units sold 7,200 Units in ending inventory 200 Variable costs per unit: Direct materials $42 Direct labor $32 Variable manufacturing overhead $1 Variable selling and administrative $8 Fixed costs: Fixed manufacturing overhead $280,800 Fixed selling and administrative $98,000 Prepare an income statement for the month using the contribution format and...
Faxon Company, which has only one product, has provided the following data concerning its most recent...
Faxon Company, which has only one product, has provided the following data concerning its most recent month of operations: selling price $137 units in beg. inventory 0 units produced 3,000 units sold 2900 units in beg. inv. 100 VC per unit direct material 40 variable cost per unit 53 var. manufacturing OH 6 variable selling and admin 9 fixed fixed manuf, OH $69,000 Fixed selling and admin 5,800 What is the product cost per unit using absorption costing? Using variable...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT