Question
In: Accounting
Roller Paint Co. reported the following data for the month of September. There were no beginning...
Roller Paint Co. reported the following data for the month of September. There were no beginning inventories and all units were completed (no work in process).
| Total Cost | Number of Units | Unit Cost | |
| Manufacturing costs: | |||
| Variable | $465,000 | 30,000 | $15.50 |
| Fixed | 210,000 | 30,000 | 7.00 |
| Total | $675,000 | $22.50 |
| Selling and administrative expenses: | |
| Variable | $2.00 per unit sold |
| Fixed | $39,000 |
In the month of September, 28,000 of the 30,000 units manufactured were sold at a price of $80.00 per unit.
| Required: | |
| (a) | Prepare a variable costing income statement.* |
| (b) | Prepare an absorption costing income statement.* |
| (c) | Briefly explain why there is a difference in income from operations between the two methods. |
| *Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. You will not need to enter colons (:) on the income statement. |
(a) Prepare a variable costing income statement. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. You will not need to enter colons (:) on the income statement.
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Roller Paint Co. |
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Variable Costing Income Statement |
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Variable cost of goods sold: |
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(b) Prepare an absorption costing income statement. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. You will not need to enter colons (:) on the income statement.
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Roller Paint Co. |
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Absorption Costing Income Statement |
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2 |
Cost of goods sold: |
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(c) Briefly explain why there is a difference in income from operations between the two methods.
The difference in the amount of income from operations is a result of the treatment of .
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Rieb Incorporated has provided the following data for the month of September. There were no beginning...
Rieb Incorporated has provided the following data for the month
of September. There were no beginning inventories; consequently,
the direct materials, direct labor, and manufacturing overhead
applied listed below are all for the current month.
Work In Process
Finished Goods
Cost of Goods Sold
Total
Direct materials
$
3,870
$
8,950
$
47,470
$
60,290
Direct labor
10,030
24,280
130,210
164,520
Manufacturing overhead applied
6,920
12,110
67,470
86,500
Total
$
20,820
$
45,340
$
245,150
$
311,310
Manufacturing overhead for...
1.Centore Inc. has provided the following data for the month of June. There were no beginning...
1.Centore Inc. has provided the following data for the month of
June. There were no beginning inventories; consequently, the direct
materials, direct labor, and manufacturing overhead applied listed
below are all for the current month.
Work In Process
Finished Goods
Cost of Goods Sold
Total
Direct materials
$
650
$
7,590
$
24,860
$
33,100
Direct labor
2,180
20,700
67,800
90,680
Manufacturing overhead
applied
930
7,130
22,940
31,000
Total
$
3,760
$
35,420
$
115,600
$
154,780
Manufacturing overhead for...
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period...
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
84
$525
$44,100
8
Purchase
168
630
105,840
11
Sale
112
1,750
196,000
30
Sale
70
1,750
122,500
May 8
Purchase
140
700
98,000
10
Sale
84
1,750
147,000
19
Sale
42
1,750
73,500
28
Purchase
140
770
107,800
June 5
Sale
84
1,840
154,560
16
Sale...
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period...
The beginning inventory for Dunne Co. and data on purchases and
sales for a three-month period are as follows:
Date
Transaction
Number
of Units
Per
Unit
Total
Apr. 3
Inventory
25
$1,200
$30,000
8
Purchase
75
1,240
93,000
11
Sale
40
2,000
80,000
30
Sale
30
2,000
60,000
May 8
Purchase
60
1,260
75,600
10
Sale
50
2,000
100,000
19
Sale
20
2,000
40,000
28
Purchase
80
1,260
100,800
June 5
Sale
40
2,250
90,000
16
Sale
25
2,250
56,250...
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period...
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
72
$450
$32,400
8
Purchase
144
540
77,760
11
Sale
96
1,500
144,000
30
Sale
60
1,500
90,000
May 8
Purchase
120
600
72,000
10
Sale
72
1,500
108,000
19
Sale
36
1,500
54,000
28
Purchase
120
660
79,200
June 5
Sale
72
1,575
113,400
16
Sale...
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period...
The beginning inventory for Dunne Co. and data on purchases and
sales for a three-month period are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
25
$1,200
$30,000
8
Purchase
75
1,240
93,000
11
Sale
40
2,000
80,000
30
Sale
30
2,000
60,000
May 8
Purchase
60
1,260
75,600
10
Sale
50
2,000
100,000
19
Sale
20
2,000
40,000
28
Purchase
80
1,260
100,800
June 5
Sale
40
2,250
90,000
16
Sale
25
2,250
56,250...
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period...
The beginning inventory at Dunne Co. and data on purchases and
sales for a three-month period ending June 30 are as follows:
Date
Transaction
Number
of Units
Per Unit
Total
Apr. 3
Inventory
78
$300
$23,400
8
Purchase
156
360
56,160
11
Sale
104
1,000
104,000
30
Sale
65
1,000
65,000
May 8
Purchase
130
400
52,000
10
Sale
78
1,000
78,000
19
Sale
39
1,000
39,000
28
Purchase
130
440
57,200
June 5
Sale
78
1,050
81,900
16
Sale...
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period...
The beginning inventory for Dunne Co. and data on purchases and
sales for a three-month period are shown below
Date
Transaction
Number of Units
Per Unit
Total
Apr.
3
Inventory
25
$1,200
$30,000
8
Purchase
75
1,240
93,000
11
Sale
40
2,000
80,000
30
Sale
30
2,000
60,000
May
8
Purchase
60
1,260
75,600
10
Sale
50
2,000
100,000
19
Sale
20
2,000
40,000
28
Purchase
80
1,260
100,800
June
5
Sale
40
2,250
90,000
16
Sale
25
2,250
56,250...
At the beginning of 2018, Baker Co. reported the following amounts related to investments: &
At the beginning of 2018, Baker Co. reported
the following amounts related to investments:
ASSETS
Interest receivable-Black Co.
bonds
20,000
Investment in Blue Co. common
stock
$320,000
Fair value
adjustment
(10,000)=$310,000
Investment in Red Co. common
stock
$700,000
Fair value adjustment $20,000= $720,000
Investment in Black Co., 8% bonds-AFS
security $600,000
Fair value
adjustment
30,000 = $630,000
Requirement 1: In the space below each item a-d (or on a
t-account sheet), record Rockets 2018...
Hess Company's inventory records show the following data for the month of September: &
Hess Company's inventory records show the following data
for the month of September:
Units
Unit Cost
Inventory, September
1
100
$3.00
Purchases: September
8
450
3.50
September
18
300
3.70
A physical inventory on September 30 shows 150 units on
hand.
a. Calculate the value of ending
inventory and cost of goods sold if the company uses
FIFO inventory costing
and a periodic inventory system.
b. Calculate the value of ending
inventory and cost of goods sold if...
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