Question
In: Accounting
For Absorption Costing, I will calculate the Cost of Goods Sold by multiplying the Sales and...
For Absorption Costing, I will calculate the Cost of Goods Sold by multiplying the Sales and (Fixed Manufacturing cost per unit + Variable Manufacturing Cost per unit). The reconciliation should be done using this formula: Net Income (Absorption Costing) - Net Income (Variable Costing) = Fixed Overhead in ending balance - Fixed Overhead in opening balance. Thank you.
| Medina Corp produces bicycle helmets. Each helmet
is sold for $100. Planned and actual production was the same for May and June. The cost of the beginning inventory in May is the same as the cost of helmets in May. Data for the helmets for May and June follows: |
||||||||
| May | June | |||||||
| Sales | 500 | units | 700 | units | ||||
| Production | 700 | units | 560 | units | ||||
| Beginning inventory | 60 | units | ||||||
| Costs: | ||||||||
| Variable Manufacturing | 17500 | 14000 | ||||||
| Fixed Manufacturing | 14000 | 14000 | ||||||
| Variable Operating | 10000 | 12000 | ||||||
| Fixed Operating | 7000 | 7000 | ||||||
| REQUIRED: | ||||||||
| A. Prepare income statements for May and June under | ||||||||
| (i) variable costing; and, | ||||||||
| (ii) absorption costing. | ||||||||
| B. Prepare a numerical reconciliation and
explanation of the difference between operating income each month under absorption costing and variable costing. |
||||||||
500
is unit as there is a "unit" right behind 500, sale price is $100.
I dont see any '76' and '60' in the question?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Given the following data, calculate the cost of goods sold using the LIFO costing method assuming...
Given the following data, calculate the cost of goods sold
using the LIFO costing method assuming that periodic inventory
records are kept in dollars.
Date
Item
Unit
1/1
Beginning inventory
5 units at $22 per unit
3/18
Purchase of inventory
11 units at $24 per unit
6/20
Purchase of inventory
9 units at $27 per unit
9/27
Purchase of inventory
28 units at $28 per unit
11/27
Purchase of inventory
28 units at $29 per unit
12/31
Ending inventory
18...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of...
Cost of Goods Manufactured, using Variable Costing and
Absorption Costing
On March 31, the end of the first year of operations, Barnard
Inc., manufactured 3,700 units and sold 3,200 units. The following
income statement was prepared, based on the variable costing
concept:
Barnard Inc.
Variable Costing Income Statement
For the Year Ended March 31, 20Y1
Sales
$1,024,000
Variable cost of goods sold:
Variable cost of goods manufactured
$569,800
Inventory, March 31
(77,000)
Total variable cost of goods sold
(492,800)
Manufacturing...
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of...
Cost of Goods Manufactured, using Variable Costing and
Absorption Costing
On December 31, the end of the first year of operations,
Frankenreiter Inc., manufactured 2,400 units and sold 2,100 units.
The following income statement was prepared, based on the variable
costing concept:
Frankenreiter Inc.
Variable Costing Income Statement
For the Year Ended December 31, 20Y1
Sales
$588,000
Variable cost of goods sold:
Variable cost of goods
manufactured
$321,600
Inventory, December
31
(40,200)
Total variable cost of
goods sold
281,400
Manufacturing...
Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold.
Absorption StatementAbsorption costing does not distinguish between variable and
fixed costs. All manufacturing costs are included in the cost of
goods sold.Saxon, Inc.Absorption Costing Income StatementFor the Year Ended December 31Sales$1,275,000Cost of goods sold: Cost of goods manufactured$800,000 Ending inventory(120,000) Total cost of goods sold(680,000)Gross profit$595,000Selling and administrative expenses(286,000)Operating income$309,000Variable StatementUnder variable costing, the cost of goods manufactured includes
only variable manufacturing costs. This type of income statement
includes a computation of manufacturing margin.Saxon, Inc.Variable Costing Income StatementFor the Year Ended December 31Sales$1,275,000Variable...
Calculate net sales: Cost of goods sold $74,500 Sales revenue $112,800 Operating expenses $23,600 Sales returns...
Calculate net sales:
Cost of goods sold
$74,500
Sales revenue
$112,800
Operating expenses
$23,600
Sales returns
$4,600
Sales discounts
$6,700
Inventory purchases
$80,530
Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Exercise 6-4A Calculate inventory amounts when costs are rising
(LO6-3)During the year, TRC Corporation has the following inventory
transactions.DateTransactionNumber of UnitsUnit CostTotal CostJan.1Beginning inventory52$44$2,288Apr.7Purchase132466,072Jul.16Purchase202499,898Oct.6Purchase112505,600498$23,858For the entire year, the company sells 432 units of inventory
for $62 each.Exercise 6-4A Part 22. Using LIFO, calculate ending inventory, cost
of goods sold, sales revenue, and gross profit.
How can i calculate Cost of goods sold and ending inventory using FIFO, LIFO and the...
How can i calculate Cost of goods sold and ending inventory
using FIFO, LIFO and the periodic system given the information
below?
On December 1, 2017, Ivanhoe Company had the account balances
shown below.
Debits
Credits
Cash
$5,180
Accumulated Depreciation—Equipment
$1,460
Accounts Receivable
4,230
Accounts Payable
2,710
Inventory (2,900 x $0.60)
1,740
Common Stock
10,200
Equipment
21,400
Retained Earnings
18,180
$32,550
$32,550
The following transactions occurred during December.
Dec. 3
Purchased 3,900 units of inventory on account at a cost...
From the following, calculate the cost of ending inventory and cost of goods sold for the...
From the following, calculate the cost of ending inventory and
cost of goods sold for the weighted-average method, ending
inventory is 56 units. (Round your intermediate
calculations and final answers to the nearest cent.)
Beginning inventory
and purchases
Units
Unit cost
January 1
6
$
2.70
April 10
9
3.20
May 15
13
3.70
July 22
14
3.95
August 19
19
4.70
September 30
19
4.90
November 10
33
5.10
December 15
15
5.50
cost of ending inventory?
Cost of...
From the following, calculate the cost of ending inventory and cost of goods sold for the...
From the following, calculate the cost of ending inventory and
cost of goods sold for the LIFO method, ending inventory is 54
units. (Round your answers to the nearest cent.)
Beginning inventory
and purchases
Units
Unit cost
January 1
6
$
1.00
April 10
9
1.50
May 15
13
2.00
July 22
14
2.25
August 19
19
3.00
September 30
19
3.20
November 10
33
3.40
December 15
15
3.80
Cost of ending inventory
$
Cost of goods sold
$
Calculate the cost of goods sold and the cost of the ending inventory using the LIFO...
Calculate the cost of goods sold and the cost of the ending
inventory using the LIFO periodic cost flow assumption.
Sales 97 units at $ 18 per unit
Beginning inventory 88 units at $ 6 per unit
Purchases 58 units at $ 10 per unit
Calculate the cost of goods sold using the LIFO periodic cost
flow assumption. Units x Cost per Unit = Total Cost Units from
beginning inventory x = Units from purchase x = Cost of Goods...
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