Question

In: Accounting

The following data pertain to April operations for Josephson Company: Beginning inventory    3,000      Units...

The following data pertain to April operations for Josephson Company:

Beginning inventory    3,000     
Units sold     9,000     
Units produced     8,000     
Sales price per unit     $ 30     
Direct manufacturing cost per unit     $ 10     
Fixed factory overhead-total    $40,000     
Fixed factory overhead-per unit    $ 5     
Commercial expense (all fixed)    $44,000     

Required:
a. Prepare an income statement using absorption costing.
b. Prepare an income statement using marginal costing.
c. Provide computations as well as explain the difference in operating income between the two methods.


Solutions

Expert Solution

Hi

Let me know in case you face any issue:

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The following data pertain to April pertain for Jennings      Manufacturing Company:          Beginning Inventory……………….3,000          Unit...
The following data pertain to April pertain for Jennings      Manufacturing Company:          Beginning Inventory……………….3,000          Unit sold……………………………9,000          Unit Produced………………………8,000          Sales price per unit…………………$30          Direct Manufacturing cost per unit…$10          Fixed factory overhead-total……….$40,000          Fixed factory overhead-per unit……$5          Commercial expenses (all fixed)…..$50,000          Required: Prepare an income statement using absorption costing Prepare an income statement using direct costing Provide computation explaining the difference in        operating income between the two methods.
1. The following data pertain to April operations for Schnitzels Company:                   Unit sold           &nbsp
1. The following data pertain to April operations for Schnitzels Company:                   Unit sold                                                90.000          Unit produced                                        100.000          Sales price per unit                                $ 12                                    Fixed                            Variable Materials                     -                               $2    per unit produced Direct Labor                -                                 1.5 per unit produced Factory Overhead $200.000                      $0.5 per unit produced Marketing and Administrative       0.2 per unit sold $140.000        Required:        Prepare an operating income statement for 20A using direct costing    
The following data for the Safety Company pertain to the produc­tion of 3,000 clay pigeons during...
The following data for the Safety Company pertain to the produc­tion of 3,000 clay pigeons during July: Standard variable-overhead cost was $5.00 per pound of clay. The actual variable-overhead cost was $11,340. Standard variable-overhead cost allowed for units produced was $12,000. Variable-overhead efficiency variance was $340 unfavorable. _____ is the variable-overhead rate variance. Group of answer choices $800 unfavorable $1,000 favorable $800 favorable $560 unfavorable
Beginning inventory, purchases and sales data for T-shirts are as follows: April 3 Inventory 24 units...
Beginning inventory, purchases and sales data for T-shirts are as follows: April 3 Inventory 24 units @ $10 11 Purchase 26 units @ $12 14 Sale 36 units 21 Purchase 18 units @ $15 25 Sale 20 units Assuming the business maintains a periodic inventory system; calculate the cost of merchandise sold and ending inventory under the following assumptions: FIFO LIFO Average cost In your computations, round the average cost per unit to two decimal places and round your final...
A company's inventory records indicate the following data for the month of April: April 1 Beginning...
A company's inventory records indicate the following data for the month of April: April 1 Beginning 350 units at $18 each April 5 Purchase 290 units at $20 each April 9 Sale 500 units at $55 each April 14 Purchase 250 units at $22 each April 20 Sale 200 units at $55 each April 30 Purchase 240 units at $25 each The company uses the perpetual inventory system What would be the cost of the ending inventory under the following...
Question The following data pertain to the operations of a manufacturing company for the year 2018...
Question The following data pertain to the operations of a manufacturing company for the year 2018 Item Amount (sh) Sales revenues 1,000,000 Direct materials inventory, Jan 1, 2018 15,000 Direct labour 300,000 Depreciation, plant   60,000 Depreciation, equipment 40,000 Cutting tools used 10,000 Indirect labour 5,000 Factory lighting and power 10,000 Factory supervisor’s salary 50,000 Indirect materials 10,000 Finished goods inventory, Jan 1, 2018 30,000 Work in progress inventory, December 31, 2018 20,000 Office Supplies 10,000 Finished goods inventory, December 31,...
Inventory TableClose The following data pertain to Company A’s inventory that was purchased on January 5,...
Inventory TableClose The following data pertain to Company A’s inventory that was purchased on January 5, Year 1, for $40,000: March 31, Year 1 June 30, Year 1 December 31, Year 1 Estimated selling price $42,000 $44,000 $41,000 Cost of disposal 2,000 2,000 2,500 Normal profit margin 1,200 1,400 1,100 Cost of completion 1,000 1,000 1,000 Current replacement cost 38,000 42,000 36,000 Note: Entire inventory was sold on May 1, Year 2. EmailClose To: Bill West From: Rufus Brown Date:...
Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,900 units...
Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,900 units at $20; purchases, 5,700 units at $25; operating expenses (excluding income taxes), $96,000; ending inventory per physical count at December 31, 1,200 units; sales price per unit, $50; and average income tax rate, 30%. Required: 1. Prepare income statements under the FIFO, LIFO, and weighted average costing methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Between FIFO...
The accounting records of Blossom Company show the following data. Beginning inventory 5,000 units at $5...
The accounting records of Blossom Company show the following data. Beginning inventory 5,000 units at $5 Purchases 7,500 units at $7 Sales 9,900 units at $10 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g. 125.)
The accounting records of Blossom Company show the following data. Beginning inventory 5,000 units at $5...
The accounting records of Blossom Company show the following data. Beginning inventory 5,000 units at $5 Purchases 7,500 units at $7 Sales 9,900 units at $10 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter average unit cost in dollars per unit Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT