Question
In: Accounting
Under absorption costing and variable costing, how are fixed manufacturing costs treated? a b c d
Under absorption costing and variable costing, how are fixed
manufacturing costs treated?
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Solutions
ekkarill92 answered 2 years agoRelated Solutions
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $90 per unit, and fixed...
Analyzing Income under Absorption and Variable Costing
Variable manufacturing costs are $90 per unit, and fixed
manufacturing costs are $95,400. Sales are estimated to be 8,200
units.
If an amount is zero, enter "0". Do not round interim
calculations. Round final answer to nearest whole dollar.
a. How much would absorption costing income
from operations differ between a plan to produce 8,200 units and a
plan to produce 10,600 units?
$fill in the blank 1
b. How much would variable...
Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are...
Absorption Statement
Absorption 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 Statement
For the Year Ended December 31
Sales
$1,200,000
Cost of goods sold:
Cost of goods manufactured
$800,000
Ending inventory
(200,000)
Total cost of goods sold
(600,000)
Gross profit
$600,000
Selling and administrative expenses
(290,000)
Operating income
$310,000
Variable Statement
Under variable costing, the cost of goods manufactured includes
only variable manufacturing...
Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are...
Absorption Statement
Absorption 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 Statement
For the Year Ended December 31
Sales
$1,200,000
Cost of goods sold:
Cost of goods manufactured
$800,000
Ending inventory
(200,000)
Total cost of goods sold
(600,000)
Gross profit
$600,000
Selling and administrative expenses
(290,000)
Operating income
$310,000
Variable Statement
Under variable costing, the cost of goods manufactured includes
only variable manufacturing...
Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in...
Absorption 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 Statement
For the Year Ended December 31
1
Sales
$1,200,000.00
2
Cost of goods sold:
3
Beginning inventory
$0.00
4
Cost of goods manufactured
800,000.00
5
Ending inventory
(160,000.00)
6
Total cost of goods sold
640,000.00
7
Gross profit
$560,000.00
8
Selling and administrative expenses
289,000.00
9
Income from operations
$271,000.00
Under variable costing,...
Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in...
Absorption 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 Statement
For the Year Ended December 31
1
Sales
$1,125,000.00
2
Cost of goods sold:
3
Beginning inventory
$0.00
4
Cost of goods manufactured
840,000.00
5
Ending inventory
(210,000.00)
6
Total cost of goods sold
630,000.00
7
Gross profit
$495,000.00
8
Selling and administrative expenses
275,000.00
9
Income from operations
$220,000.00
Variable Statement
Under...
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...
explain the difference between absorption costing and variable costing methods. How does each treat fixed manufacturing...
explain the difference between absorption costing and variable
costing methods. How does each treat fixed manufacturing overhead?
Provide an example and calculate the unit product cost using each
method.
Explain the difference between absorption costing and variable costing methods. How does each treat fixed manufacturing...
Explain the difference between absorption costing and variable
costing methods. How does each treat fixed manufacturing overhead?
Provide an example and calculate the unit product cost using each
method.
Under absorption costing, fixed manufacturing overhead costs: a) are released from inventory when sales exceeds production...
Under absorption costing, fixed manufacturing overhead
costs:
a) are released from inventory when sales exceeds production
b) are treated as variable costs
c) are deferred into inventory when sales exceeds production
d) are ignored
e) are always treated as period costs
Stark Industries believes their indirect materials costs are a
variable cost, which change based on the number of units produced.
Last month's performance report showed that the flexible budget had
indirect materials cost totaling $8,500 for the month and...
17. For external reporting purposes, how are fixed manufacturing costs treated? a. As period costs. b. Expensed...
17. For external reporting
purposes, how are fixed manufacturing costs treated?
a.
As period costs.
b.
Expensed as incurred.
c.
Period costs included in the value of inventory.
d.
Product costs included in the value of inventory.
Java Gourmet Coffee
Java Gourmet Coffee reports the following data for April 2010
where 200,000 pounds of roasted gourmet coffee beans were actually
produced (note: standard costs do not allow for any wastage),
Actual:
Direct Materials:
Quantity of coffee beans:
210,000 pounds
Cost per...
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