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In: Accounting
TB Problem Qu. 6-274 The Dorset Corporation produces and sells ... The Dorset Corporation produces and...
TB Problem Qu. 6-274 The Dorset Corporation produces and sells ...
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:
| Beginning inventory | 0 | |
| Units produced | 28,300 | |
| Units sold | 26,600 | |
| Selling price per unit | $ | 446 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 15 |
| Fixed per year | $ | 478,800 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 252 |
| Direct labor cost per unit | $ | 57 |
| Variable manufacturing overhead cost per unit | $ | 31 |
| Fixed manufacturing overhead per year | $ | 594,300 |
Assume that direct labor is a variable cost.
Required:
a. Compute the unit product cost under both the absorption costing and variable costing approaches.
b. Prepare an income statement for the year using absorption costing.
c. Prepare an income statement for the year using variable costing.
d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
TB Problem Qu. 3-252 Baab Corporation is a ... Baab Corporation is a manufacturing firm that...
TB Problem Qu. 3-252 Baab Corporation is a ... Baab Corporation
is a manufacturing firm that uses job-order costing. The company's
inventory balances were as follows at the beginning and end of the
year: Beginning Balance Ending Balance Raw materials $ 14,950 $
22,950 Work in process $ 27,950 $ 9,950 Finished Goods $ 62,950 $
77,950 The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated...
TB Problem Qu. 3-252 Baab Corporation is a ... Baab Corporation is a manufacturing firm that...
TB Problem Qu. 3-252 Baab Corporation is a ...
Baab Corporation is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beginning Balance
Ending Balance
Raw
materials
$
14,650
$
22,650
Work in
process
$
27,650
$
9,650
Finished
Goods
$
62,650
$
77,650
The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated...
TB Problem Qu. 6-273 Maher Corporation, which has only one product ... Maher Corporation, which has...
TB Problem Qu. 6-273 Maher Corporation, which has only one
product ...
Maher Corporation, which has only one product, has provided the
following data concerning its most recent month of operations:
Selling price
$
197
Units in beginning inventory
0
Units produced
3,200
Units sold
2,800
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
53
Direct labor
$
58
Variable manufacturing overhead
$
13
Variable selling and administrative expense
$
12
Fixed costs:
Fixed manufacturing overhead...
TB Problem Qu. 13-161 Mattice Corporation is considering... Mattice Corporation is considering investing $850,000 in a...
TB Problem Qu. 13-161 Mattice Corporation is considering...
Mattice Corporation is considering investing $850,000 in a
project. The life of the project would be 6 years. The project
would require additional working capital of $35,000, which would be
released for use elsewhere at the end of the project. The annual
net cash inflows would be $180,000. The salvage value of the assets
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rate of 13%. (Ignore income taxes.)...
Item5 eBook Item 5 Item 5 TB Problem Qu. 6-273 Maher Corporation, which has only one...
Item5
eBook
Item 5
Item 5
TB Problem Qu. 6-273 Maher Corporation, which has only one
product ...
Maher Corporation, which has only one product, has provided the
following data concerning its most recent month of operations:
Selling price
$
173
Units in beginning inventory
0
Units produced
3,510
Units sold
3,240
Units in ending inventory
270
Variable costs per unit:
Direct materials
$
47
Direct labor
$
56
Variable manufacturing overhead
$
12
Variable selling and administrative expense
$...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
30,300
Units sold
24,700
Selling price per unit
$
465
Selling and administrative
expenses:
Variable per unit
$
25
Fixed per year
$
469,300
Manufacturing costs:
Direct materials cost per
unit
$
211
Direct labor cost per unit
$
53
Variable manufacturing overhead
cost per unit
$
36
Fixed manufacturing overhead per
year
$
454,500
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory 0 Units produced 32,700 Units sold 27,100
Selling price per unit $ 459 Selling and administrative expenses:
Variable per unit $ 20 Fixed per year $ 406,500 Manufacturing
costs: Direct materials cost per unit $ 298 Direct labor cost per
unit $ 52 Variable manufacturing overhead cost per unit $ 30 Fixed
manufacturing overhead per year $ 425,100 Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
34,000
Units sold
28,700
Selling price per unit
$
409
Selling and administrative expenses:
Variable per unit
$
18
Fixed per year
$
602,700
Manufacturing costs:
Direct materials cost per unit
$
252
Direct labor cost per unit
$
55
Variable manufacturing overhead cost per unit
$
32
Fixed manufacturing overhead per year
$
646,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
31,700
Units sold
28,600
Selling price per unit
$
416
Selling and administrative expenses:
Variable per unit
$
22
Fixed per year
$
457,600
Manufacturing costs:
Direct materials cost per unit
$
240
Direct labor cost per unit
$
54
Variable manufacturing overhead cost per unit
$
37
Fixed manufacturing overhead per year
$
380,400
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
28,000
Units sold
24,000
Selling price per unit
$
466
Selling and administrative expenses:
Variable per unit
$
21
Fixed per year
$
336,000
Manufacturing costs:
Direct materials cost per unit
$
296
Direct labor cost per unit
$
57
Variable manufacturing overhead cost per unit
$
34
Fixed manufacturing overhead per year
$
448,000
Assume that...
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