Question
In: Accounting
USE ABSORPTION METHOD AND DIRECT APPROACH The following information is considered for a manufacturing company For...
USE ABSORPTION METHOD AND DIRECT APPROACH
The following information is considered for a manufacturing company
For 5000 units of product, the following were incurred:
2000 units of raw material at $100 each
3000 hh at $ 20 each
$ 100.000 in electric power
linear depreciation for $ 50.000 each period
lease machinery for $ 50.000
4000 units were sold during the period at a sale price of $ 400. It asks:
a) determine the total and unit production cost according to both approaches
b) determine the result of the period according to both approaches
c) determine the inventory cost according to both approaches
Solutions
ekkarill92 answered 1 year agoRelated Solutions
select information for kuyaleyri Company is below. use the direct method to prepare the 2019 operating...
select information for kuyaleyri Company is below. use the
direct method to prepare the 2019 operating section of the
statement of cash flows:
2019
2018
Sales
$ 500,000
$ 480,000
Cost of goods sold
$ (400,000)
$ (380,000)
Depreciation expense
$ (40,000)
$ (35,000)
Utility expense
$ (45,000)
$ (44,000)
Wage expense
$ (12,000)
$ (11,000)
Gain on sale of equipment
$
1,000
$
500
Loss on sale of investment
$ (2,000)
$
-
Income tax expense (paid in cash)...
select information for kuyaleyri Company is below. use the direct method to prepare the 2019 operating...
select information for kuyaleyri Company is below. use the
direct method to prepare the 2019 operating section of the
statement of cash flows:
2019
2018
Sales
$ 500,000
$ 480,000
Cost of goods sold
$ (400,000)
$ (380,000)
Depreciation expense
$ (40,000)
$ (35,000)
Utility expense
$ (45,000)
$ (44,000)
Wage expense
$ (12,000)
$ (11,000)
Gain on sale of equipment
$
1,000
$
500
Loss on sale of investment
$ (2,000)
$
-
Income tax expense (paid in cash)...
The following information related to Instep Company, and is available for 2014: Budgeted direct manufacturing labor...
The following information related to Instep Company, and is
available for 2014:
Budgeted direct manufacturing labor -
hours
22500
Budgeted manufacturing overhead costs
315000
Costs of actual material
used
148000
Actual direct manufacturing labor-
hours
20000
Actual manufacturing overhead
costs
300000
There were two jobs in process on December 31,2014: job 11 and
job 12:
Direct materials
direct labor
Job
11
4870
5100
Job
12
5910
6800
Requirement:
1.Compute the overhead allocation rate
2.Compute the cost of job 11...
The following information is available for Bear Manufacturing Company. -- Direct materials price standard is $3.50...
The following information is available for Bear Manufacturing
Company.
-- Direct materials price standard is $3.50 per pound.
-- Direct materials quantity standard is six pounds per finished
unit.
-- Budgeted production is 25,000 finished units.
-- 175,000 pounds of direct materials were purchased for
$550,000.
-- 175,000 pounds of direct materials were used in
production.
-- 26,000 finished units of product were produced.
What is the direct materials quantity variance?
A) $25,400 Unfavorable
B) $25,400 Favorable
C) $66,500 Unfavorable...
1. Determine the following information using absorption costing and variable costing: Absorption costing a. Manufacturing cost...
1. Determine the following information using absorption costing
and variable costing:
Absorption costing
a. Manufacturing cost _______________
b. Per-unit cost _______________
c. Cost of ending inventory _______________
Variable costing
a. Manufacturing cost _______________
b. Per-unit cost _______________
c. Cost of ending inventory _______________
Basic facts:
Direct materials $1,000
Direct labor $2,000
Variable overhead $1,500
Fixed overhead $1,000
Units produced 100
Units sold 80
No beginning inventory
2. What is the prime cost per unit and conversion cost per
unit:
a....
Nina Company has provided the following information: Direct material $35.00 Direct labor $16.00 Variable manufacturing overhead...
Nina Company has provided the following information: Direct
material $35.00 Direct labor $16.00 Variable manufacturing overhead
$14.00 Fixed manufacturing overhead $12.00 Variable administrative
expense $8.00 Fixed administrative expense $5.00 Nina normally
produces 15,000 units and sells these units at $150 per unit. A
national discount box store has contacted the company about
ordering 3,500 units that would be manufactured in a slightly
different way and would save the company $6.00 per unit in direct
materials. Nina has excess capacity and...
the following information pertains to manufacturing costs and direct labor hour. Given the information, what is...
the following information pertains to manufacturing costs and
direct labor hour. Given the information, what is variable cost per
unit of the cost function? month total costs direct LH Jan 4000 360
Feb 3,989 327 Mar 4100 375 April 4500 400 May 4400 405 June 4,387
449 July 4450 425
the following information pertains to manufacturing costs and direct labor hour. Given the information, what is...
the following information pertains to manufacturing costs and
direct labor hour. Given the information, what is fixed cost of the
cost function? month total costs direct LH Jan 4000 360 Feb 4,025
326 Mar 4100 375 April 4500 400 May 4400 405 June 4,380 446 July
4450 425
A manufacturing company has prepared the following budgeted information for year 2: K Direct material 800,000...
A manufacturing company has prepared the following budgeted
information for year 2: K
Direct material 800,000
Direct labour 200,000
Direct expenses 40,000
Production overhead 600,000
Administrative overhead 328,000
Budgeted activity levels include: Units
Budgeted production 600,000
Machine hours 50,000
Labour hours 40,000
It has recently spent heavily upon advanced technological
machinery and reduced its workforce. As a consequence it is
thinking about changing its basis for overhead absorption from a
percentage of direct labour cost to either a machine hour...
______1. Reports use which of these approaches: A. the direct approach B. the indirect approach C....
______1. Reports use which of these approaches:
A. the direct approach
B. the indirect approach
C. a combination of the direct and indirect approaches.
D. none of the above
______2. An analytical
report
A. describes what occurred during a convention or
conference.
B. gives a concise overview of a situation, publication, or
document.
C. breaks down a problem or situation into components and
recommends
solutions.
D. offers structured persuasion for internal or external
audiences.
______3. In a particular set...
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