Question

In: Accounting

Required information [The following information applies to the questions displayed below.] Cool Sky reports the following...

Required information

[The following information applies to the questions displayed below.]

Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit.
  

Manufacturing costs
Direct materials per unit $ 60
Direct labor per unit $ 22
Variable overhead per unit $ 8
Fixed overhead for the year $ 528,000
Selling and administrative costs
Variable selling and administrative cost per unit $ 9
Fixed selling and administrative cost per year $ 115,000

1a. Assume the company uses absorption costing. Determine its product cost per unit.

Per unit product cost using: Absorption costing
Total cost per unit

1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.

COOL SKY
Absorption Costing Income Statement
Net income (loss)

2a. Assume the company uses variable costing. Determine its product cost per unit.

Per unit product cost using: Variable costing
Total cost per unit

2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

COOL SKY
Variable Costing Income Statement
Net income (loss)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Required information [The following information applies to the questions displayed below.] A food manufacturer reports the...
Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. ($millions) Beverage Division Cheese Division Invested assets, beginning $ 2,662 $ 4,455 Invested assets, ending 2,593 4,400 Sales 2,681 3,925 Operating income 349 634 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year.
Required information [The following information applies to the questions displayed below.] Actuary and trustee reports indicate...
Required information [The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018: Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $7 million per year) $ 52 million Net loss–pensions at Jan.1, 2018 (previous losses exceeded previous gains) $ 65 million Average remaining service life of the active employee group 10 years Actuary’s discount rate...
Required information E7-6 through E7-10. [The following information applies to the questions displayed below.] Morning Sky,...
Required information E7-6 through E7-10. [The following information applies to the questions displayed below.] Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well...
Required information [The following information applies to the questions displayed below.] The following are the transactions...
Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 45 $ 10 July 13 Purchase 225 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 170 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under LIFO. Assume a periodic inventory system is used. LIFO...
Required information [The following information applies to the questions displayed below.] The following are the transactions...
Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 54 $ 10 July 13 Purchase 270 12 July 25 Sold (100 ) $ 16 July 31 Ending Inventory 224 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under weighted average cost. Assume a periodic inventory system is...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 28,000 $ 52,000 Work in process 9,000 21,000 Finished goods 61,000 33,300 Activities and information for May Raw materials purchases (paid with cash) 181,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 10,000 Indirect labor 46,000 Other overhead costs...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 46,000 $ 55,000 Work in process 9,000 19,600 Finished goods 62,000 33,300 Activities and information for May Raw materials purchases (paid with cash) 183,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 11,000 Indirect labor 57,500 Other overhead costs...
A) Required information [The following information applies to the questions displayed below.] The following information pertains...
A) Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Beginning Inventory 400 units @ $ 30 Apr. 1 Purchased 2,000 units @ $ 35 Oct. 1 Purchased 600 units @ $ 38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change...
Required information [The following information applies to the questions displayed below.] The following information was reported...
Required information [The following information applies to the questions displayed below.] The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). Accounts Payable $ 4,125 Accounts Receivable 710 Aircraft Fuel Expense 10,000 Cash 3,100 Common Stock 1,285 Dividends 20 Equipment 15,930 Income Tax Expense 320 Interest Expense 260 Landing Fees Expense 4,400 Notes Payable 7,015 Repairs and Maintenance Expense 2,500 Retained Earnings (as of December 31, 2017) 8,060 Salaries...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017.    On July 31, the company’s Cash account has a $25,752 debit balance, but its July bank statement shows a $27,446 cash balance. Check No. 3031 for $1,260 and Check No. 3040 for $622 were outstanding on the June 30 bank reconciliation. Check No. 3040...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT