Question

In: Accounting

2. Compudesk., Inc. makes an oak desk specially designed for personal computers. The desk sells for...

2. Compudesk., Inc. makes an oak desk specially designed for personal computers. The desk sells for $200.
Data for last year’s operation follow: 10
Units in beginning inventory 0
Units produced 10,000
Units sold 1000
Units in ending inventory 1,000
Variable cost per unit:
Direct material $ 60
Direct labor 30
Variable manufacturing overhead 10
Variable selling & administrative overhead 20
Total variable cost per unit $120
Fixed costs:
Fixed manufacturing overhead $3,00,000
Fixed selling & administrative overhead 4,50,000

Required-
Prepare the company’s income statement in the contribution format using variable costing &
absorption costing.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Unistar Computers makes and sells a unique computer that is designed for a specific market. Cost...
Unistar Computers makes and sells a unique computer that is designed for a specific market. Cost information relating to that product is shown below: Sales price $ 1,500 per unit Variable costs $ 1,000 per unit Fixed costs $ 120,000 total Unistar expects to make and sell 300 computers. Based on this information, the margin of safety expressed in units is: Multiple Choice 60 units. 300 units. 240 units. 120 units. please include formulas so i can see how you...
WordBoss, Inc. uses 4 word processors and 2 desk-top computers to generate reports. The marginal product...
WordBoss, Inc. uses 4 word processors and 2 desk-top computers to generate reports. The marginal product of a word processor is 50 pages per hour and the marginal product of a desk-top computer is 500 pages per hour. If the rental price of a word processor is $1 per hour and the rental price of a desk-top computer is $10 per hour, is WordBoss utilizing word processors and desk-top computers efficiently? If the price of each page produced is $0.10,...
Wolverine Inc. had the following standards for their production of a specialty desk designed to work...
Wolverine Inc. had the following standards for their production of a specialty desk designed to work with laptops, tablets and smartphones. The standards are based on 500,000 labor hours. Materials:6 lbs. @ $5 per lb.Labor: 10 hrs.@ $7 per hr.Fixed OH:$500,000Variable OH:$5 per DL hr Fixed OH was calculated based on an estimated production level of 250,000 hours. During the month of March, the following occurred: Production:30,000 Materials Purchased:200,000 lbs @ $5.15 per lb. Materials Used160,000 lbs Direct Labor320,000 hrs...
Office Furniture Inc. sells modular desk units and office chairs in the ratio of 3:2. That...
Office Furniture Inc. sells modular desk units and office chairs in the ratio of 3:2. That is 3 desk units for every 2 chairs sold. The selling prices are $1,280 per desk unit and $540 per chair. The variable costs are $760 per desk unit and $270 per chair. Shared fixed costs total $160,000. a) Prepare a schedule to compute the selling price and variable cost per composite unit. b) Compute the break-even point in composite units. c) Compute the...
Tammi’s Truck Stop sells Seat-o-Nails cushions, which are specially designed to keep drivers awake on the...
Tammi’s Truck Stop sells Seat-o-Nails cushions, which are specially designed to keep drivers awake on the road. Her accessories supplier makes deliveries every Tuesday, at which times she can get as many cushions as she wants (the supplier always has extras in his truck). Tammi, who was a statistics major in college, has done some calculations and estimates that weekly demand for cushions is normally distributed with mean 35 and standard deviation 10. The cushions cost her $40 wholesale and...
Taino Computers, Inc. makes a variety of computers. One of these products is a Game Console...
Taino Computers, Inc. makes a variety of computers. One of these products is a Game Console model: Yukiyu-XL. This model includes the ultimate in technology and is in strong demand. Expected demand for this year is 35,000 units. Full production capacity for Yukiyu-XL is 40,000 units, but 35,000 units are considered normal capacity. The following unit price and breakdown is applicable in 2019: Per unit Sales Price $350.00 Less manufacturing costs: Materials $86.00 Direct Labor $35.00 Overhead: Variable $25.00                ...
Taino Computers, Inc. makes a variety of computers. One of these products is a PC model:...
Taino Computers, Inc. makes a variety of computers. One of these products is a PC model: Yukiyu-XL. This model includes the ultimate in technology and is in strong demand. Expected demand for this year is 20,000 units. Full production capacity for Yukiyu-XL is 25,000 units, but 20,000 units are considered normal capacity. The following unit price and breakdown (per unit) is applicable in 2014:                                                                                                 Sales Price per unit $255.50 Less manufacturing costs: Materials $85.00 Direct Labor $30.00 Overhead: Variable...
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables,...
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division’s monthly costs are shown in the schedule below:      Manufacturing costs:      Variable costs per unit:         Direct materials $ 192         Variable manufacturing overhead $ 19      Fixed manufacturing overhead costs (total) $ 500,850   Selling and administrative costs:      Variable 15 % of sales      Fixed (total) $ 343,440 Zurgot regards all of its workers as full-time employees, and the company has a long-standing...
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables,...
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division’s monthly costs are shown in the schedule below:      Manufacturing costs:      Variable costs per unit:         Direct materials $ 192         Variable manufacturing overhead $ 17      Fixed manufacturing overhead costs (total) $ 561,105   Selling and administrative costs:      Variable 15 % of sales      Fixed (total) $ 272,970 Zurgot regards all of its workers as full-time employees, and the company has a long-standing...
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables,...
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division’s monthly costs are shown in the schedule below:      Manufacturing costs:      Variable costs per unit:         Direct materials $ 192         Variable manufacturing overhead $ 17      Fixed manufacturing overhead costs (total) $ 561,105   Selling and administrative costs:      Variable 15 % of sales      Fixed (total) $ 272,970 Zurgot regards all of its workers as full-time employees, and the company has a long-standing...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT