Question
In: Accounting
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced...
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced 2,600 Number of units sold 1,600 Sales price per unit $ 650.00 Direct materials per unit 75.00 Direct labor per unit 105.00 Variable manufacturing overhead per unit 55.00 Fixed manufacturing overhead per unit ($307,060 ÷ 2,600 units) 118.10 Total variable selling expenses ($10 per unit sold) 16,000.00 Total fixed general and administrative expenses 76,000.00 Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing.
Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory.
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Complete a variable costing income statement for Presidio. Assume there was no beginning inventory.
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Compute the difference in profit between full absorption costing and variable costing.
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Solutions
ekkarill92 answered 2 years agoRelated Solutions
Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidio’s...
Consider the following information for Presidio Inc.'s most
recent year of operations. Additional information for Presidio’s
most recent year of operations follows: Number of units produced
2,900 Number of units sold 1,750 Unit sales price $ 680.00 Direct
materials per unit 55.00 Direct labor per unit 85.00 Variable
manufacturing overhead per unit 35.00 Fixed manufacturing overhead
per unit ($343,360 ÷ 2,900 units) 118.40 Total variable selling
expenses ($13 per unit sold) 22,750.00 Total fixed general and
administrative expenses 79,000.00 Required:...
Consider the following information regarding Pink Tartan Inc. Number of units produced 1,000,000 Total fixed cost &nb
Consider the following information regarding Pink Tartan
Inc.
Number of units
produced
1,000,000
Total fixed
cost
$250,000
Per unit variable
cost
$0.32
Interest on outstanding
debt
$400,000
Per unit selling
price
$3.80
Tax rate = 46%
Pink Tartan Inc. has 1,000,000 shares outstanding currently
selling in the market for $10. The firm is evaluating a new project
that would require an initial investment of $2,400,000.
To raise the additional $2,400,000,
the firm is considering two alternatives: (6)
Debt: sell $2,400,000...
Consider the following information regarding Pink Tartan Inc. Number of units produced 1,000,000 Total fixed cost &nb
Consider the following information regarding Pink Tartan
Inc.
Number of units
produced
1,000,000
Total fixed
cost
$250,000
Per unit variable
cost
$0.32
Interest on outstanding
debt
$400,000
Per unit selling
price
$3.80
Calculate the DOL, DFL, and DCL for Pink Tartan Inc. (4)
If the firm would like to double their EBIT, what percentage
increase in sales would be needed? (3)
Pink Tartan Inc. has 1,000,000 shares outstanding currently
selling in the market for $10. The firm is evaluating a...
Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based...
Odessa, Inc., reports the following information concerning
operations for the most recent month:
Actual (based on actual of 540 units)
Master Budget (based on budgeted 600 units)
Sales revenue
$
100,320
$
108,000
Less
Manufacturing costs
Direct labor
13,050
13,800
Materials
12,460
14,400
Variable overhead
6,030
7,800
Marketing
5,080
5,760
Administrative
4,200
4,200
Total variable costs
$
40,820
$
45,960
Contribution margin
$
59,500
$
62,040
Fixed costs
Manufacturing
4,360
4,500
Marketing
10,280
9,900
Administrative
9,861
9,900
Total fixed...
During the most recent year, Boston (PTY) Ltd has produced the following data: Beginning inventory Units...
During the most recent year, Boston (PTY) Ltd has produced the
following data:
Beginning inventory
Units produced
15 400
Units sold (R125 per unit)
8 200
Variable costs per unit:
Direct materials
R13
Direct Labor
R16
Variable Overheads
R8
Fixed Costs
Fixed overhead per unit produced
R23
Fixed selling and administrative
R18 500
Required:
1. How many units are in ending inventory
2. Using absorption costing, calculate the per unit -product
cost. What is the value of ending inventory?
3....
Dalley Inc. has the following information for its first year of operations: Revenues (200,000 units) $...
Dalley Inc. has the following information for its first year of
operations:
Revenues (200,000 units)
$
2,900,000
Manufacturing costs:
Materials
$
168,000
Variable cash costs
142,400
Fixed cash costs
327,600
Depreciation (fixed)
999,000
Marketing (variable)
422,400
Marketing depreciation
149,600
Administrative (fixed)
509,200
Administrative depreciation
74,800
Total costs
$
2,793,000
Operating profits
$
107,000
All depreciation charges are fixed and are expected to remain
the same for year 2. Sales volume is expected to increase by 15%,
but sales prices are...
consider the following data for two products of gitano manufacturing number id units produced product a...
consider the following data for two products of gitano
manufacturing
number id units produced product a 11,500 units product b 1300
units
direct labor cost (@ $27 per DLH) product a 0.14 DLH per unit
product b 0.28 DLH per unit
direct materials cost product a $2 per unit product b $2.50
per unit
machine setup overhead costs $51,176
materials handling $ 55,000
quality control inspections $79,380
total $ 185,556
round to two decimal places
1.
use direct labor hours...
Number of units produced 30, 000 Number of units sold  
Number of units
produced 30,
000
Number of units
sold 28,000
Selling
price $20
Beginning
inventory 0
Fixed selling and administrative
costs $ 20,000
Fixed manufacturing
overhead $
150,000
Direct materials cost per
unit 2
Direct manufacturing
labor 6
Variable manufacturing overhead per unit
4
Variable selling expenses per
unit 2
FMOH per
unit
5
1.Operating Income under Absorption method
is
2.If Sales Revenue $560,000 then Gross Margin under Absorption
method is
3.Cost of Goods Sold and Ending inventory under Absorption
costing method are:
4.What is...
The following data has been provided for a company’s most recent year of operations: Return on...
The following data has been provided for a company’s most recent
year of operations:
Return on investment
30
%
Average operating assets
$
75,000
Minimum required rate of return
17
%
The residual income for the year was closest to:
$9,750
$20,000
$15,750
$21,500
Pop Evil, Inc.'s, net income for the most recent year was $10,131. The tax rate was...
Pop Evil, Inc.'s, net income for the most recent year was
$10,131. The tax rate was 24 percent. The firm paid $3,490 in total
interest expense and deducted $2,101 in depreciation expense. What
was the cash coverage ratio for the year?
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