Question
In: Accounting
YYZ has the following financial information: Current Year Prior Year # Units in Beginning Inventory ?...
YYZ has the following financial information:
|
Current Year |
Prior Year |
||
|
# Units in Beginning Inventory |
? |
0 |
|
|
# Units Sold |
570,000 |
580,000 |
|
|
# Units Manufactured (Actual) |
610,000 |
590,000 |
|
|
# Units Manufactured (Budget) |
640,000 |
600,000 |
|
|
Selling Price |
(per unit) |
10.00 |
9.90 |
|
Variable Manufacturing Costs |
(per unit) |
5.00 |
4.80 |
|
Variable Sales+Admin Costs |
(per unit) |
1.00 |
1.00 |
|
Fixed Manufacturing Costs (Budget and Actual) |
(total) |
1,600,000 |
1,560,000 |
|
Fixed sales+admin costs (actual) |
(total) |
360,000 |
350,000 |
|
Net income (Variable Costing) |
322,000 |
468,000 |
Inventory is recorded at FIFO
Required:
- Calculate the value of the Ending Inventory under Absorption Costing and Variable costing for the prior year and current year
- Prepare an income statement under Absorption Costing for the current year
- Reconcile the difference in Operating Income between Variable costing and Absorption Costing for the current year
Solutions
ekkarill92 answered 2 years agoRelated Solutions
XYZhas the following financial information: Current Year Prior Year # Units in Beginning Inventory ? ...
XYZhas the following financial information:
Current Year
Prior Year
# Units in Beginning Inventory
?
0
# Units Sold
570,000
580,000
# Units Manufactured (Actual)
610,000
590,000
# Units Manufactured (Budget)
640,000
600,000
Selling Price
(per unit)
10.00
9.90
Variable Manufacturing Costs
(per unit)
5.00
4.80
Variable Sales+Admin Costs
(per unit)
1.00
1.00
Fixed Manufacturing Costs (Budget and Actual)
(total)
1,600,000
1,560,000
Fixed sales+admin costs...
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
. Ledger Properties has the following financial information: Current Year Prior Year Revenues $ 48,915 $...
. Ledger Properties has the following financial information:
Current Year
Prior Year
Revenues
$
48,915
$
43,610
Administrative expenses
12,106
11,602
Interest expense
816
468
Cost of goods sold
29,715
26,309
Depreciation
1,408
1,387
Net fixed assets
32,711
31,984
Current liabilities
14,652
14,625
Common stock
15,000
14,000
Current assets
16,506
14,687
Long-term debt
12,200
?
Retained earnings
7,365
4,246
Dividends paid
290
275
What is the cash flow of the firm for the current year if the
tax rate is...
5) Ledger Properties has the following financial information: Current Year Prior Year Revenues $ 48,915...
5) Ledger Properties has the following financial
information:
Current Year Prior Year
Revenues $ 48,915 $ 43,610
Administrative expenses 12,106 11,602
Interest expense 816 468
Cost of goods sold 29,715 26,309
Depreciation 1,408 1,387
Net fixed assets 32,711 31,984
Current liabilities 14,652 14,625
Common stock 15,000 14,000
Current assets 16,506 14,687
Long-term debt 12,200 ?
Retained earnings 7,365 4,246
Dividends paid 290 275
What is the cash flow...
The following information pertains to Chacon Inc. for last year: Beginning inventory in units 5,200 Units...
The following information pertains to Chacon Inc. for last
year:
Beginning inventory in units
5,200
Units produced
20,600
Units sold
23,500
Costs per unit:
Direct materials
$8.50
Direct labor
$3.60
Variable overhead
$1.10
Fixed overhead*
$4.35
Variable selling expenses
$2.80
Fixed selling and administrative expenses
$23,700
* Fixed overhead totals $89,610 per year.
Assume that the selling price is $29 per unit.
1. Calculate operating income using absorption costing. Refer to
the list of Labels and Amount Descriptions for the...
The following information pertains to Chacon Inc. for last year: Beginning inventory in units 5,200 Units...
The following information pertains to Chacon Inc. for last
year:
Beginning inventory in units
5,200
Units produced
20,600
Units sold
23,500
Costs per unit:
Direct materials
$8.50
Direct labor
$3.60
Variable overhead
$1.10
Fixed overhead*
$4.35
Variable selling expenses
$2.80
Fixed selling and administrative
expenses
$23,700
* Fixed overhead totals $89,610 per year.
Assume that the selling price is $29 per unit.
Labels
Add
Add fixed expenses
Add variable expenses
Less
Less fixed expenses
Less variable expenses
Amount
Descriptions
Contribution...
Consider the following information for the Intermediate Company for the year 2018: Units in Beginning Inventory ...
Consider the following information for the Intermediate Company
for the year 2018:
Units in Beginning
Inventory
0
Units
produced
9,500
Units
Sold
5,700
Units Selling
Price
$350
Variable costs per unit:
Direct
Materials
$106
Direct
Labor
$42
Variable
Overhead
$30
Fixed costs:
Fixed Costs per unit
produced
$23
Fixed Selling & Administrative
Costs $440,000
A) Compute Unit Product Cost under Absorption Costing &
Variable Costing
B) Compute...
Given the following information: Prior Year (Budget) Prior Year (Actual) Current Year (Budget) Current Year (Actual)...
Given the following information:
Prior Year (Budget)
Prior Year (Actual)
Current Year (Budget)
Current Year (Actual)
Beginning Inventory (Units)
0
0
?
?
Sales (Units)
600,000
580,000
575,000
570,000
Manufactured (Units)
600,000
590,000
640,000
610,000
Selling Price ($/unit)
9.99
9.90
9.95
10.00
Variable Manufacturing Cost ($/unit)
4.92
4.90
5.00
4.95
Total Fixed Manufacturing Costs ($)
1,584,000
1,561,000
1,625,000
1,599,531
Variable Selling Cost ($/unit)
1.00
1.01
0.99
1.00
Total Fixed SG&A Costs ($)
350,000
353,000
352,850
348,000
Other information:
The manufacturer...
a company reports the following information for the current year. all beginning inventory amounts =$0 this...
a company reports the following information for the current
year. all beginning inventory amounts =$0 this year.
unites produced this year 43,000 units, units sold this year
25,800, direct materials 27, direct labor 29 variable overheard
129,000 fixed overheard $215,000.
units sold this year 25,800. Given the data, and the knowledge
that the product is sold for $83 per unit and operating expenses
are $380,000, compute the net income under absorption and variable
costing?
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