Question
In: Accounting
Year 1 Year 2 Beginning FG inventory in units 100 ? Ø Units Produced 3,000 1,000...
|
Year 1 |
Year 2 |
|
|
Beginning FG inventory in units |
100 |
? Ø |
|
Units Produced |
3,000 |
1,000 |
|
Units Sold |
2,000 |
2,000 |
|
Sales |
$800,000 |
$800,000 |
|
Material Costs |
$210,000 |
$70,000 |
|
Variable Labor |
$66,000 |
$66,000 |
|
Variable Overhead |
$24,000 |
$8,000 |
|
Fixed Overhead |
$240,000 |
$240,000 |
|
Variable Selling & Administration |
$60,000 |
$60,000 |
|
Fixed Selling and Administrative Expense |
$120,000 |
$120,000 |
*Beginning Inventory costs per unit for Year 0 are identical to those for Year 1.
Ø The amount of beginning inventory for Year 2 is missing. Please determine how many units are in beginning inventory.
Determine the income using both absorption and variable/throughput costing.
Present the data to managers so that they understand any income fluctuations
Solutions
Expert Solution
| varialbe costing | |||||||||
| year 1 | year 2 | ||||||||
| particulars | value | qty | per unit | particulars | value | qty | per unit | ||
| sales | $8,00,000.00 | 2000 | $400.00 | sales | $8,00,000.00 | 2000 | $400.00 | ||
| material | $2,10,000.00 | 2000 | $105.00 | material | $70,000.00 | 2000 | $35.00 | ||
| labour | $66,000.00 | 2000 | $33.00 | labour | $66,000.00 | 2000 | $33.00 | ||
| varable overheda | $24,000.00 | 2000 | $12.00 | varable overheda | $8,000.00 | 2000 | $4.00 | ||
| varlable sellliing | $60,000.00 | 2000 | $30.00 | varlable sellliing | $60,000.00 | 2000 | $30.00 | ||
| Total varialbe cost | $3,60,000.00 | Total varialbe cost | $2,04,000.00 | ||||||
| contribution | $4,40,000.00 | contribution | $5,96,000.00 | ||||||
| fixed selling | $1,20,000.00 | 2000 | $60.00 | fixed selling | $1,20,000.00 | 2000 | $60.00 | ||
| fixed ovehread | $2,40,000.00 | 2000 | $120.00 | fixed ovehread | $2,40,000.00 | 2000 | $120.00 | ||
| Total fixed costs | $3,60,000.00 | Total fixed costs | $3,60,000.00 | ||||||
| net profit | $80,000.00 | net profit | $2,36,000.00 | ||||||
| ABSORPTION COSTING | |||||||||
| particulars | value | qty | per unit | particulars | value | qty | per unit | ||
| sales | $8,00,000.00 | 2000 | $400.00 | sales | $8,00,000.00 | 2000 | |||
| material | $2,10,000.00 | 3000 | $70.00 | material | $70,000.00 | 1000 | $70.00 | ||
| labour | $66,000.00 | 3000 | $22.00 | labour | $66,000.00 | 1000 | $66.00 | ||
| varable overheda | $24,000.00 | 3000 | $8.00 | varable overheda | $8,000.00 | 1000 | $8.00 | ||
| fixed ovehread | $2,40,000.00 | 3000 | $80.00 | fixed ovehread | $2,40,000.00 | 1000 | $240.00 | ||
| Total overhead | $5,40,000.00 | 3000 | $180.00 | Total overhead | $3,84,000.00 | 1000 | $384.00 | ||
| cost of good sold | $3,60,000.00 | 2000 | 180 | cost of good sold | $1,98,000.00 | $1,100.00 | $180.00 | ||
| $3,45,600.00 | $900.00 | $384.00 | |||||||
| gross profit | $4,40,000.00 | total | $5,43,600.00 | ||||||
| gross profit | $2,56,400.00 | ||||||||
| varlable sellliing | $60,000.00 | ||||||||
| fixed selling | $1,20,000.00 | varlable sellliing | $60,000.00 | ||||||
| total cost of sales | $1,80,000.00 | fixed selling | $1,20,000.00 | ||||||
| total cost of sales | $1,80,000.00 | ||||||||
| net proflit | $2,60,000.00 | ||||||||
| net proflit | $76,400.00 | ||||||||
| year 1 | year2 | ||||||||
| op stock | 100 | 1100 | |||||||
| produced | 3000 | note : it is assumed that out of 2000 units sold | |||||||
| sales | -2000 | 1100 units are from op stoct @180 | |||||||
| cl stock | 1100 | and remainng 900 units are from current year @384 | |||||||
ekkarill92 answered 1 year agoRelated Solutions
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...
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
operating income will be higher under variable costing than
absorption costing.
An organization reported the following: Units $ per unit Beginning Inventory 100 $2 1/1 Purchase on...
An organization reported the following:
Units
$ per unit
Beginning Inventory
100
$2
1/1 Purchase on account
1200
$3
1/14 Sell 600 units on account for $8/each
1/22 Purchase on account
900
$4
1/29 Sell 850 units on account for $9/each
A. Prepare the journal entries for above (using FIFO). Find the
ending inventory for 1/31 and gross profit for January.
B. Prepare the journal entries for above (using LIFO). Find the
ending inventory for 1/31 and gross profit for...
Beginning inventory, purchases, and sales for Meta-B1 are as follows: July 1 Inventory 100 units at...
Beginning inventory, purchases, and sales for Meta-B1 are as
follows:
July 1
Inventory
100 units at $400
12
Sale
70 units
23
Purchase
120 units at $450
26
Sale
110 units
a. Assuming a perpetual inventory system and
using the weighted average method, determine the weighted average
unit cost after the July 23 purchase.
$per unit
b. Assuming a perpetual inventory system and
using the weighted average method, determine the cost of the
merchandise sold on July 26.
$
c....
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....
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...
The following information pertains to Mayberry Corporation: Beginning inventory 6,000 units Ending inventory 1,000 units Direct...
The following information pertains to Mayberry Corporation:
Beginning inventory
6,000 units
Ending inventory
1,000 units
Direct labor per unit
$40
Direct materials per unit
20
Variable overhead per unit
10
Fixed overhead per unit
30
Variable selling and admin. costs per unit
6
Fixed selling and admin. costs per unit
14
A) What is the value of the ending inventory using the
absorption costing method?
a) $600,000
b) $100,000
c) $120,000
d)
$70,000
B) What is the value of the...
Loanstar had 50 units in beginning inventory before starting 1,000 units and completing 850 units. The...
Loanstar had 50 units in beginning inventory before starting
1,000 units and completing 850 units. The beginning work in process
inventory consisted of $3,000 in materials and $5,000 in conversion
costs before $8,550 of materials and $12,670 of conversion costs
were added during the month. The ending WIP inventory was 100%
complete with regard to materials and 40% complete with regard to
conversion costs.
Use the above information to complete a production cost report.
Enter all amount as positive values....
Blue Book printing is budgeting sales of 21,000 units and already has 3,000 in beginning inventory....
Blue Book printing is budgeting sales of 21,000 units and
already has 3,000 in beginning inventory. How many units must be
produced to also meet the 5,000 units required in ending
inventory?
Number of units
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Reply to this post in at least 500 word. Discuss what you agreed and disagree with...
- Bellevue Inc.’s shareholders’ equity accounts were as follows at the beginning of the current fiscal year,...
- Kingbird Company uses special strapping equipment in its packaging business. The equipment was purchased in January...
- The accompanying data table lists the magnitudes of 50 earthquakes measured on the Richter scale. Test...
- What is the pH of the buffer that results when 0.235 mol of NH3 and (2.46x10^-1)...
- Develop a WBS for aporject of support and rehabilitation of orphans with disabilities use the outline...
- Write a program using C++ that ask the user for the flowing: How many shares to...
ADVERTISEMENT