Question
In: Accounting
Question No. Four X Limited Corporation making one product only, the standard cost of which is...
Question No. Four
X Limited Corporation making one product only, the standard cost of which is as follow:
|
2016 |
2017 |
2018 |
|
|
Direct material |
35,000 |
36000 |
48,000 |
|
Direct labor |
30,000 |
33000 |
42,000 |
|
Variable manufacturing overhead |
25,000 |
24000 |
54,000 |
|
Variable marketing costs |
10 000 |
15000 |
14.000 |
|
Total variable costs |
100 000 |
122000 |
158.000 |
- The fixed manufacturing overhead costs $300,000
- Fixed marketing costs $200,000
- The selling price $200 per unit sold
- The number of units produced and sold were:
|
Beginning inv. Production Sales Ending inv. |
2016 |
2017 |
2018 |
|
1000 5000 4000 ........ |
.......... 3000 ........ ........ |
3000 6000 ........ 1000 |
Required
- Prepare income statements under variable, absorption and throughput costing for the year ended December 31, 2018.
- Explain the difference of the results?
Solutions
Expert Solution
1. Prepare income statements under variable, absorption and throughput costing for the year ended December 31, 2018.
2. Explain the difference of the results?
ekkarill92 answered 1 year agoRelated Solutions
Company X manufactures a single product for which the standard cost of one unit is as...
Company X manufactures a single product for which the standard
cost of one unit is as follows:
€
Direct material (3.0 kg at €2 per kg)
6.00
Direct labour (1.2 hours at €10 per hour)
12.00
Manufacturing overheads
7.00
25.00
During January, the company produced 9,000 units and the actual
costs were as follows:
Costs:
€
24,000 kg of material
56,500
10,950 hours of
labour
110,700
Overheads
61,700
228,900
Material price variance is
...
Owen limited uses a standard costing system. The standard cost card for one product is shown...
Owen limited uses a standard costing system. The standard cost
card for one product is shown below.
Direct material
4kg @$5 per
kg
20
Direct labour
2 hour @ $8 per
hour
16
Variable
overhead
2 hours @ $3.5 per
hour
7
Total variable
cost
43
Fixed
overhead
2 hours @ $7 per
hour
14
Total production
cost
57
Standard selling
price
70
Standard profit
margin
13
The budgeted output and sales was 1000 units. Actual production
and...
QUESTION ONE The following information relates to the only product manufactured and sold by Namwela limited....
QUESTION ONE
The following information relates to the only product manufactured
and sold by Namwela limited.
K per Unit
Selling price 50
Direct Material cost 14
Direct labour cost 16
Variable production overhead 10
Fixed production overhead 1.80
Variable sales and marketing overhead 1.00
The following level of activity took place over the first two years
of the product’s life:
Sales ( units) production ( units)
Year 1 13,000 14,000
Year 2 12,500 11,500
ADDITIONAL INFORMATION
1. Budgeted fixed production...
A company produces and sells one product only, Peperoni, the standard cost for one unit being...
A company produces and sells one product only, Peperoni, the
standard cost for one unit being as
Follows.
$
Direct material A – 10 kilograms at $20 per
kg
200
Direct material B – 5 litres at $6 per
litre
30
Direct wages – 5 hours at $6 per hour
30
Fixed production overhead
50
Total standard cost
310
The fixed overhead included in the standard cost is based on an
expected monthly output of...
A company commenced business on 1 January 2019 making one product only. The cost card of...
A company commenced business on 1 January 2019 making one
product only. The cost card of the company’s product is as follows:
K Direct material 16 Direct labour 10 Variable production overhead
4 Fixed production overhead 10 Product cost per unit 40 The fixed
production overhead figure has been calculated on the basis of a
budgeted normal output of 72,000 units per annum. The fixed
production overhead incurred in January was K30, 000. The selling,
distribution and administrative expenses were:...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a...
Wallis Company manufactures only one product and uses a standard
cost system. The company uses a predetermined plantwide overhead
rate that relies on direct labor-hours as the allocation base. All
of the company's manufacturing overhead costs are fixed—it does not
incur any variable manufacturing overhead costs. The predetermined
overhead rate is based on a cost formula that estimated $2,892,000
of fixed manufacturing overhead for an estimated allocation base of
289,200 direct labor-hours. Wallis does not maintain any beginning
or ending...
Phoenix Company manufactures only one product and uses a standard cost system. The company uses a...
Phoenix Company manufactures only one product and uses a
standard cost system. The company uses a plantwide predetermined
overhead rate that relies on direct labor-hours as the allocation
base. The predetermined overhead rate is based on a cost formula
that estimated $2,887,200 of fixed and variable manufacturing
overhead for an estimated allocation base of 240,600 direct
labor-hours. Phoenix does not maintain any beginning or ending work
in process inventory.
The company’s beginning balance sheet is as follows:
Phoenix Company
Balance...
Wallis Company manufactures only one product and uses a standard cost system. The company uses a...
Wallis Company manufactures only one product and uses a standard
cost system. The company uses a predetermined plantwide overhead
rate that relies on direct labor-hours as the allocation base. All
of the company's manufacturing overhead costs are fixed—it does not
incur any variable manufacturing overhead costs. The predetermined
overhead rate is based on a cost formula that estimated $2,886,000
of fixed manufacturing overhead for an estimated allocation base of
288,600 direct labor-hours. Wallis does not maintain any beginning
or ending...
Adom Limited manufactures one product for which the following cost information has been collected:  
Adom Limited manufactures one product for which the following
cost information has been collected:
GH¢’000
Direct
materials
10
Direct
labor
29
Direct
expenses
3
Factory expenses
Variable
7
Fixed
5
Non-manufacturing costs
Variable
2
Fixed
4
Profit is 33% of total cost
Calculate:
The total cost of a unit
The prime cost of a unit
The selling price of a unit
The variable cost of a unit
The inventory valuation figure
Softwood Limited, which has only one product, has provided the following data concerning its operations for...
Softwood Limited, which has only one product, has provided the
following data concerning its operations for September:
Selling prices
$84
Units in beginning inventory
500
Units produced
1,900
Units sold
2,100
Units in ending inventory
300
Variable costs per unit:
Direct materials
$25
Direct labour
$10
Variable manufacturing overhead
$7
Variable selling and administrative
$10
Fixed costs:
Fixed manufacturing overhead
$38,000
Fixed selling and administrative
$21,000
The company produces the same number of units...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Can someone show me how this is supposed to look in a table format. I want...
- (a) List the six coverages provided in the Homeowner's 3 policy. (b) Describe the difference between...
- about how Much energy from our food is transformed into unsable chemical energy
- MULTIPLE CHOICE QUESTIONS 1. Kayaks-For-Fun produces two kayak models, "River" and "Sea". The River model sells...
- The following questions are true or false 1. Since commercial bank loans are cheaper than trade...
- A 1220-kg car pulls a 390-kg trailer. The car exerts a horizontal force of 3.6 ×...
- Why are Not for Profits susceptible to sophisticated scams?
ADVERTISEMENT