Question
In: Accounting
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
|
Prior Year (Budget and Actual) |
Current Year (Budget and Actual) |
|
|
Beginning Inventory (Units) |
0 |
? |
|
Sales (Units) |
600,000 |
575,000 |
|
Manufactured (Units) |
600,000 |
640,000 |
|
Selling Price ($/unit) |
9.90 |
10.00 |
|
Variable Manufacturing Cost ($/unit) |
4.80 |
5.00 |
|
Total Fixed Manufacturing Costs ($) |
1,560,000 |
1,600,000 |
|
Variable Selling Cost ($/unit) |
1.00 |
1.00 |
|
Total Fixed SG&A Costs ($) |
351,000 |
358,000 |
Other information:
- The manufacturer uses FIFO.
- All Variable costs are direct costs
Required:
- Prepare an income statement for the Current Year based on Variable Costing.
- Prepare an income statement for the Current Year based on Absorption Costing.
- Reconcile the difference in Net Income between Variable Costing and Absorption Costing for the current year.
- Near the very end of the fiscal year, the production manager noted that if Net Income increases by $200 they will get a big bonus. How can the production manager increase Net income using Absorption costing even though no additional units will be produced?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
Given the following information: Prior Year (Budget) Prior Year (Actual) Current Year (Budget) Current Year (Actual)...
Given the following information:
Prior Year (Budget)
Prior Year (Actual)
Current Year (Budget)
Current Year (Actual)
Beginning Inventory (Units)
0
0
?
?
Sales (Units)
600,000
580,000
575,000
570,000
Manufactured (Units)
600,000
590,000
640,000
610,000
Selling Price ($/unit)
9.99
9.90
9.95
10.00
Variable Manufacturing Cost ($/unit)
4.92
4.90
5.00
4.95
Total Fixed Manufacturing Costs ($)
1,584,000
1,561,000
1,625,000
1,599,531
Variable Selling Cost ($/unit)
1.00
1.01
0.99
1.00
Total Fixed SG&A Costs ($)
350,000
353,000
352,850
348,000
Other information:
The manufacturer...
XYZhas the following financial information: Current Year Prior Year # Units in Beginning Inventory ? ...
XYZhas the following financial information:
Current Year
Prior Year
# Units in Beginning Inventory
?
0
# Units Sold
570,000
580,000
# Units Manufactured (Actual)
610,000
590,000
# Units Manufactured (Budget)
640,000
600,000
Selling Price
(per unit)
10.00
9.90
Variable Manufacturing Costs
(per unit)
5.00
4.80
Variable Sales+Admin Costs
(per unit)
1.00
1.00
Fixed Manufacturing Costs (Budget and Actual)
(total)
1,600,000
1,560,000
Fixed sales+admin costs...
YYZ has the following financial information: Current Year Prior Year # Units in Beginning Inventory ?...
YYZ has the following financial information:
Current Year
Prior Year
# Units in Beginning Inventory
?
0
# Units Sold
570,000
580,000
# Units Manufactured (Actual)
610,000
590,000
# Units Manufactured (Budget)
640,000
600,000
Selling Price
(per unit)
10.00
9.90
Variable Manufacturing Costs
(per unit)
5.00
4.80
Variable Sales+Admin Costs
(per unit)
1.00
1.00
Fixed Manufacturing Costs (Budget and Actual)
(total)
1,600,000
1,560,000
Fixed sales+admin...
a company reports the following information for the current year. all beginning inventory amounts =$0 this...
a company reports the following information for the current
year. all beginning inventory amounts =$0 this year.
unites produced this year 43,000 units, units sold this year
25,800, direct materials 27, direct labor 29 variable overheard
129,000 fixed overheard $215,000.
units sold this year 25,800. Given the data, and the knowledge
that the product is sold for $83 per unit and operating expenses
are $380,000, compute the net income under absorption and variable
costing?
Below is the variance report Prior year Item Budget Actual Variance Variance % Actual Days in...
Below is the variance report
Prior year
Item
Budget
Actual
Variance
Variance %
Actual
Days in time period
31
31
31
Staffed Beds
20
20
20
Patient days
527
498
(29.0)
-5.5%
415
Total RN FTEs
45.1
50.1
(5.0)
-11.1%
36.7
Revenue:
Gross patient revenue
$460,450
$441.932
($18,518)
-4.0%
$417,883
Personnel Expense:
Total salaries and wages
$171,920
$192,845
($20,925)
-12.2%
$141,552
Benefits
$51,576
$52,797
($1,221)
-2.4%
$42,466
Total personnel expenses
$223,496
$245,642
($22,146)
-9.9%
$184,018
Overtime wages %
2.0%
6.1%...
Review the following SG&A budget that was prepared at the beginning of the current year. The...
Review the following SG&A budget that was prepared at the
beginning of the current year. The economy appears to be slowing,
and sales are now expected to run only 75% of plan. How much can
now be expected to result for total SG&A?
The only fixed cost that can be reduced relates to the
advertising campaign. What are the possible impacts of attempting
to save money by cutting a portion of the advertising budget?
Selling, General, and Administrative Budget
For...
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0...
Advanced Company reports the following information for the
current year. All
beginning inventory amounts equaled $0 this year
Units produced this year 40,000 units
Units sold this year 24,000 units
Direct materials $ 24 per unit
Direct labor $ 26 per unit
Variable overhead $ 3 per unit
Fixed overhead $ 200,000 in total
Given Advanced Company's data, and the knowledge that the product
is sold for $80
per unit and operating expenses are $350,000, compute the net
income under...
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0...
Advanced Company reports the following information for the
current year. All beginning inventory amounts equaled $0 this year.
Units produced this year 34,000 units Units sold this year 20,400
units Direct materials $ 18 per unit Direct labor $ 20 per unit
Variable overhead $ 3 per unit Fixed overhead $ 170,000 in
total
A. Given Advanced Company's data, compute cost per unit of
finished goods under variable costing.
B. Given Advanced Company's data, compute cost per
unit of finished goods...
Presented below is information related to Oriole Corporation for the current year. Beginning inventory $ 596,100...
Presented below is information related to Oriole Corporation for
the current year. Beginning inventory $ 596,100 Purchases 1,505,300
Total goods available for sale $2,101,400 Sales revenue 2,500,000
Compute the ending inventory, assuming that (a) gross profit is 46%
of sales, (b) gross profit is 60% of cost, (c) gross profit is 32%
of sales, and (d) gross profit is 25% of cost.
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