Campbell Glass Company makes stained glass lamps. Each lamp that it sells for $315.10 per lamp...

Campbell Glass Company makes stained glass lamps. Each lamp that it sells for $315.10 per lamp requires $16.70 of direct materials and $70.30 of direct labor. Fixed overhead costs are expected to be $190,500 per year. Campbell Glass expects to sell 1,000 lamps during the coming year. Selling and administrative expenses were zero.

Required

Prepare income statements using absorption costing, assuming that Campbell Glass makes 1,000, 1,250, and 1,500 lamps during the year.
Prepare income statements using variable costing, assuming that Campbell Glass makes 1,000, 1,250, and 1,500 lamps during the year.

Prepare income statements using absorption costing, assuming that Campbell Glass makes 1,000, 1,250, and 1,500 lamps during the year. (Do not round intermediate calculations.)

CAMPBELL GLASS COMPANY
Income Statements – Absorption Costing
Units Produced	1,000	1,250	1,500


	0	0	0


	$0	$0	$0

Prepare income statements using variable costing, assuming that Campbell Glass makes 1,000, 1,250, and 1,500 lamps during the year. (Do not round intermediate calculations.)

CAMPBELL GLASS COMPANY
Income Statements – Variable Costing
Units Produced	1,000	1,250	1,500


	0	0	0


	$0	$0	$0

Expert Solution



					Fixed Cost PU:	1000	1250	1500
CAMPBELL GLASS COMPANY					Total Fixed Cost	190500	190500	190500
Income Statement-Absorption Costing					Fixed Cost PU:	190.50	152.40	127.00
Units Produced	1000	1250	1500
Sales	315100	393875	472650	(Units*315.10)	Unit Cost-Abs Cost	1000	1250	1500
Less: Cost of Goods Sold	277500	299250	321000	(Unit Cost*Qty Sold)	Direct Material	16.70	16.70	16.70
Gross Profit	37600	94625	151650		Direct Labor	70.30	70.30	70.30
Less: S&A Expense	0	0	0		Fixed Cost PU	190.50	152.40	127.00
NOI	37600	94625	151650		Unit Cost-Abs Cost	277.50	239.40	214.00




CAMPBELL GLASS COMPANY
Income Statement-Variable Costing
Units Produced	1000	1250	1500
Sales	315100	393875	472650	(Units*315.10)	Unit Cost-Vari Cost	1000	1250	1500
Less: Cost of Goods Sold	87000	108750	130500	(Unit Cost*Qty Sold)	Direct Material	16.70	16.70	16.70
Gross Profit	228100	285125	342150		Direct Labor	70.30	70.30	70.30
Less: Period Expense-Fixed Cost	190500	190500	190500		Fixed Cost PU	0.00	0.00	0.00
NOI	37600	94625	151650		Unit Cost-Abs Cost	87.00	87.00	87.00

ekkarill92 answered 2 months ago

Munoz Glass Company makes stained glass lamps. Each lamp that it sells for $316.50 per lamp...

Munoz Glass Company makes stained glass lamps. Each lamp that it sells for $316.50 per lamp requires $16.80 of direct materials and $71.40 of direct labor. Fixed overhead costs are expected to be $195,000 per year. Munoz Glass expects to sell 1,000 lamps during the coming year. Selling and administrative expenses were zero. Prepare income statements using absorption costing, assuming that Munoz Glass makes 1,000, 1,250, and 1,500 lamps during the year. (Do not round intermediate calculations.) MUNOZ GLASS COMPANY...

Cloverton Glass Company makes stained glass lamps. Each lamp that it sells for $128 requires $20...

Cloverton Glass Company makes stained glass lamps. Each lamp that it sells for $128 requires $20 of direct materials and $32 of direct labor. Fixed overhead costs are expected to be $72,000 per year. Cloverton Glass expects to sell 1,000 lamps during the coming year. Selling and administrative expenses were zero. Required: Prepare income statements using absorption costing, assuming that Cloverton Glass makes 1,000, 1,250, and 1,500 lamps during the year. Prepare income statements using variable costing, assuming that Cloverton...

Standards Lamp Kits $16.000000 per lamp Direct Labor 2.400000 per lamp (4 lamps/hr.) Variable Overhead 0.250000...

Standards Lamp Kits $16.000000 per lamp Direct Labor 2.400000 per lamp (4 lamps/hr.) Variable Overhead 0.250000 per lamp (4 lamps/hr.) ** Fixed Overhead 10.000000 per lamp Total $28.650000 ** Fixed overhead is based on expected production of 4,009 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while...

Campbell Company makes and sells products with variable costs of $24 each. Campbell incurs annual fixed...

Campbell Company makes and sells products with variable costs of $24 each. Campbell incurs annual fixed costs of $340,360. The current sales price is $91. Note: The requirements of this question are interdependent. For example, the $268,000 desired to profit introduced in Requirement C also applies to subsequent requirements. Likewise, the $80 sales price introduced in requirement D applies to the subsequent requirements. f) If variable cost rises to $30 per unit, what level of sales is required to earn...

Campbell Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget.

Campbell Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Campbell's policy is to maintain an ending inventory balance equal to 10 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $79,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the...

Assume that Harry Ellis produces table lamps in the perfectly competitive table lamp market. OUTPUT PER...

Assume that Harry Ellis produces table lamps in the perfectly competitive table lamp market. OUTPUT PER WEEK TOTAL COSTS AFC AVC ATC MC 0 $100 1 150 2 175 3 190 4 210 5 240 6 280 7 330 8 390 9 460 10 540 4.4.a Fill in the missing values in the above table. 4.4.b Suppose the equilibrium price in the table lamp market is $50. How many table lamps should Harry produce, and how much profit will he make? 4.4.c If...

Lamps R Us makes lamps. The variable materials cost $8.85 per unit. The variable labor cost is $8.10 per unit.

Lamps R Us makes lamps. The variable materials cost $8.85 per unit. The variable labor cost is $8.10 per unit. what is variable cost per unitsuppose Lamps R Us has fixed costs of $800,000 during the year in which its total production is 150,000 units. What are the total costs for the year?If the selling price is $39.99 per unit. Does Lamps R Us break even on a cash basis? If depreciation is $400,000 per year, what is the accounting break-even...

Exercise 11.3 The Lumins Lamp Company, a producer of old-style oil lamps, estimated the following demand...

Exercise 11.3 The Lumins Lamp Company, a producer of old-style oil lamps, estimated the following demand function for its product: Q=120,000−10,000PQ=120,000−10,000P where Q is the quantity demanded per year and P is the price per lamp. The firm’s fixed costs are $12,000 and variable costs are $1.50 per lamp. What is the total revenue (TR) function in terms of Q? Q−Q210,000Q−Q210,000 120,000Q−Q210,000120,000Q−Q210,000 120,000Q−10,000×Q2120,000Q−10,000×Q2 12Q−Q210,00012Q−Q210,000 What is the marginal revenue (MR) function? 1−Q5,0001−Q5,000 120,000−Q5,000120,000−Q5,000 12−Q5,00012−Q5,000 120,000−20,000Q120,000−20,000Q What is the total cost...

Lamps R Us makes lamps. The variable materials cost $8.85 per unit. The variable labor cost is $8.10...

Lamps R Us makes lamps. The variable materials cost $8.85 per unit. The variable labor cost is $8.10 per unit. (10 points) what is variable cost per unit suppose Lamps R Us has fixed costs of $800,000 during the year in which its total production is 150,000 units. What are the total costs for the year? If the selling price is $39.99 per unit. Does Lamps R Us break even on a cash basis? If depreciation is $400,000 per year, what is the accounting break-even point?

Gibson Company makes a product that sells for $33 per unit. The company pays $23 per...

Gibson Company makes a product that sells for $33 per unit. The company pays $23 per unit for the variable costs of the product and incurs annual fixed costs of $95,000. Gibson expects to sell 22,600 units of product. Margin of Safety. % Zachary Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 5 percent for...

Question