Question
In: Accounting
Units: Beginning inventory: 0 Produced: 70,000 COGS (in units) Sold: 50,000 Fixed costs maunfacturing overhead: $200,000...
Units:
Beginning inventory: 0
Produced: 70,000
COGS (in units)
Sold: 50,000
Fixed costs maunfacturing overhead: $200,000
Fixed cost selling expenses: $40,000
Total fixed costs: $350,000
Variable selling costs per unit are $5.00 per unit.
Manufacturing costs (per unit) Absorption Variable
Direct Materials $50 $50
Direct labor $25 $25
Variable manufacturing overhead. $5 $5
Fixed costs Manufacturing overhead. ? ?
(per units produced)
TOTAL $ ? ?
Find the blanks.
What is the difference between the amount reflected for ending inventory for the company's product under the absorption costing method and under the variable costing method? Reflect answer as positive number.
Solutions
Expert Solution
1.Fixed manufacturing Overhead
Variable Costing Absorption Costing
Per units produced $2.857 $2.857
2.Total Cost Of Production $4,000,000 $4,142,857
3.Ending Inventory $1,600,000 $1,657,143
Difference Between value of Ending Inventory under this two method is $57,143 ($1,657,143 - $1,600,000)
ekkarill92 answered 2 years agoRelated Solutions
You are given the following information: Units in beginning inventory 0 Units produced 40,000 Units sold...
You are given the following
information:
Units in beginning inventory
0
Units produced
40,000
Units sold
37,000
Selling price per unit
$120.00
Variable costs per unit:
Direct materials
$15.00
Direct labor
$30.00
Variable manufacturing
overhead
$5.00
Variable selling and
administrative
$3.00
Fixed expenses per year:
Fixed manufacturing
overhead
$600,000
Fixed selling and
administrative
$800,000
Based on this information, calculate the company's
operating income under both absorption costing and variable costing
approaches. If there is a difference between the two income...
You are given the following information: Units in beginning inventory 0 Units produced 40,000 Units sold...
You are given the following
information:
Units in beginning inventory
0
Units produced
40,000
Units sold
37,000
Selling price per unit
$120.00
Variable costs per unit:
Direct materials
$15.00
Direct labor
$30.00
Variable manufacturing
overhead
$5.00
Variable selling and
administrative
$3.00
Fixed expenses per year:
Fixed manufacturing
overhead
$600,000
Fixed selling and
administrative
$800,000
Based on this information, calculate the company's
operating income under both absorption costing and variable costing
approaches. If there is a difference between the two income...
(a) Martin Company incurred the following costs for 70,000 units of produced and sold: Variable costs...
(a)
Martin Company incurred the following costs for 70,000 units of
produced and sold:
Variable costs $420,000
Fixed costs 392,000
Martin has received a special order from a foreign company for
3,000 units. There is sufficient capacity (at the current fixed
costs of $392,000) to fill the order without jeopardizing regular
sales of 70,000 units. Filling the order will require spending an
additional $6,300 for shipping.
If Martin wants to break even on the special order from the
foreign company,...
Beginning inventory 0 Units produced 27,000 Units sold 18,500 Selling price per unit $ 93 ...
Beginning inventory
0
Units produced
27,000
Units sold
18,500
Selling price per unit
$
93
Selling and administrative expenses:
Variable per unit
$
3
Fixed (total)
$
518,000
Manufacturing costs:
Direct materials cost per
unit
$
24
Direct labour cost per unit
$
14
Variable manufacturing overhead
cost per unit
$
9
Fixed manufacturing overhead cost
(total)
$
756,000
Since the new case is unique in design, management is anxious to
see how profitable it will be and has...
selling price $95 units in beginning inventory 100 units produced 6,200 units sold 5,900 units in...
selling price
$95
units in beginning inventory
100
units produced
6,200
units sold
5,900
units in ending inventory
400
variable cost per unit
direct materials
$42
direct labor
$28
variable manufacturing overhead
$1
variable selling and administrative
$5
fixed costs
fixed manufacturing overhead
$62,000
fixed selling and administrative
$35,400
Lee Corporation, which has only one product, has provided the
following data concerning its most recent month of operations.
The company produces the same number of units every month,
although the...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs
Machine Hours
Fixed Production Costs
Fixed Overhead Costs
Units Sold
Unit Selling price
Machine Hours per
Unit
Total Sales Dollars
Variable Cost per
Unit
Total Contribution
Dollars
Contribution Dollars per
Unit
Contribution Margin
Percentage
Item #1
$65,000
10000
$25,000
$2,000
22500
$10
Item #2
$55,000
20000
$22,000
$2,500
23000
$8
Item #3
$42,000
7500
$15,000
$1,750
27500
$7
Item #4
$27,000
5000
$5,000
$500
11000
$6
Complete the grey cells in the
above table
Which product
would...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs
Machine Hours
Fixed Production Costs
Fixed Overhead Costs
Units Sold
Unit Selling price
Machine Hours per
Unit
Total Sales Dollars
Variable Cost per
Unit
Total Contribution
Dollars
Contribution Dollars per
Unit
Contribution Margin
Percentage
Item #1
$65,000
10000
$25,000
$2,000
22500
$10
Item #2
$55,000
20000
$22,000
$2,500
23000
$8
Item #3
$42,000
7500
$15,000
$1,750
27500
$7
Item #4
$27,000
5000
$5,000
$500
11000
$6
Complete the grey cells in the
above table
Which product
would...
Q&D , Inc. produced 30,000 units and sold 20,000 units in 2018. Assume $600,000 beginning inventory...
Q&D , Inc. produced 30,000 units and sold 20,000 units in
2018. Assume $600,000 beginning inventory for both variable costing
and absorption costing. The following financial information is
available for 2018.
Selling price per unit
$100.00
Direct materials per unit
$5.00
Direct labor per unit
$7.00
Variable manufacturing overhead cost per unit
$20.00
Variable operating expense per unit
$12.00
Fixed manufacturing overhead costs
$150,000
Fixed operating expenses
$116,000
Do not enter dollar signs or commas in the input boxes.
Use...
When there are no units in the beginning Finished Goods Inventory and the units produced are...
When there are no units in the beginning Finished Goods
Inventory and the units produced are more than the units sold, the
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absorption costing.
Hi-Tek produced and sold 70,000 units of B300 at a price of $20 per unit and...
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company’s traditional cost system allocates manufacturing overhead
to products using a plantwide overhead rate and direct labor
dollars as the allocation base. Additional information relating to
the company’s two product lines is shown below: Hi-Tek
Manufacturing Inc. Income Statement Sales ………………………………………………………..
$2,100,000 Cost of goods sold ………………………………….. 1,600,000 Gross
Margin ..……………............................... 500,000...
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