Seaview Technologies Ltd. manufactures deep-sea diving equipment. A deep-sea dive suit requires the following:
Direct materials standard 2 square metres at $13.50 per metre
Direct manufacturing labour standard 1.5 hours at $20.00 per hour
During the third quarter, the company made 1,500 suites and used 3,150 square metres of material costing $39,375. Direct labour totaled 2,100 hours for $45,150. (14)
a. Compute the direct materials price and efficiency variances for the quarter. (4)
b. Compute the direct manufacturing labour rate and efficiency variances for the quarter. (4)
c. Prepare the journal entries needed for the above transactions. Journal entries for the variance write-offs are not required. (6)
In: Accounting
Michael's Machine Shop reports the following information for the quarter.
| Sales price | $ | 90 | |
| Fixed costs (for the quarter) | |||
| Selling and administrative | 47,700 | ||
| Production | 143,100 | ||
| Variable cost (per unit) | |||
| Materials | 22 | ||
| Labor | 19 | ||
| Plant supervision | 12 | ||
| Selling and administrative | 13 | ||
| Number of units (for the quarter) | 23,850 | units | |
Required:
Select the answer for each of the following costs.
a. Variable cost per unit.
b. Variable production cost per unit.
c. Full cost per unit.
d. Full absorption cost per unit.
e. Prime cost per unit.
f. Conversion cost per unit.
g. Contribution margin per unit.
h. Gross margin per unit.
In: Accounting
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
| Amount | ||
| Sales | $ | 1,462,000 |
| Selling price per pair of skis | $ | 430 |
| Variable selling expense per pair of skis | $ | 49 |
| Variable administrative expense per pair of skis | $ | 18 |
| Total fixed selling expense | $ | 145,000 |
| Total fixed administrative expense | $ | 115,000 |
| Beginning merchandise inventory | $ | 80,000 |
| Ending merchandise inventory | $ | 100,000 |
| Merchandise purchases | $ | 295,000 |
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
2. Prepare a contribution format income statement for the quarter ended March 31.
3. What was the contribution margin per unit?
In: Accounting
1.)the chair of the board of directors says, "there is a 50% chance this company will earn a profit, a 30% chance it will lose money next quarter." a.) use an addition rule to find the probability the company will not lose money next quarter B.) use he complement rule to find the probability it will not lose money next quarter.
2.)suoose P(X1 )=.75 and P(Y2|X1)=.40. what is the joint probability of X1 & Y2
3.)An investor owns three common stocks. Each stock, independent of the others, has equally likely chances of (1) increasing in value. (2) decreasing in value, or (3) remaining same value. List the possible outcomes of this experiment. Estimate the probability at least two of the stocks increase in value.
In: Statistics and Probability
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
| Amount | ||
| Sales | $ | 1,496,000 |
| Selling price per pair of skis | $ | 440 |
| Variable selling expense per pair of skis | $ | 50 |
| Variable administrative expense per pair of skis | $ | 18 |
| Total fixed selling expense | $ | 145,000 |
| Total fixed administrative expense | $ | 105,000 |
| Beginning merchandise inventory | $ | 70,000 |
| Ending merchandise inventory | $ | 105,000 |
| Merchandise purchases | $ | 300,000 |
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
2. Prepare a contribution format income statement for the quarter ended March 31.
3. What was the contribution margin per unit?
In: Accounting
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,360,000 Selling price per pair of skis $ 400 Variable selling expense per pair of skis $ 46 Variable administrative expense per pair of skis $ 19 Total fixed selling expense $ 135,000 Total fixed administrative expense $ 125,000 Beginning merchandise inventory $ 75,000 Ending merchandise inventory $ 115,000 Merchandise purchases $ 285,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?
In: Accounting
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
| Amount | ||
| Sales | $ | 1,012,000 |
| Selling price per pair of skis | $ | 440 |
| Variable selling expense per pair of skis | $ | 48 |
| Variable administrative expense per pair of skis | $ | 18 |
| Total fixed selling expense | $ | 140,000 |
| Total fixed administrative expense | $ | 110,000 |
| Beginning merchandise inventory | $ | 75,000 |
| Ending merchandise inventory | $ | 105,000 |
| Merchandise purchases | $ | 305,000 |
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
2. Prepare a contribution format income statement for the quarter ended March 31.
3. What was the contribution margin per unit?
In: Accounting
Absorption and Variable Costing Income Statements
During the first month of operations ended July 31, YoSan Inc. manufactured 10,000 flat panel televisions, of which 9,400 were sold. Operating data for the month are summarized as follows:
| Sales | $1,128,000 | |
| Manufacturing costs: | ||
| Direct materials | $560,000 | |
| Direct labor | 170,000 | |
| Variable manufacturing cost | 140,000 | |
| Fixed manufacturing cost | 70,000 | 940,000 |
| Selling and administrative expenses: | ||
| Variable | $94,000 | |
| Fixed | 43,200 | 137,200 |
Required:
1. Prepare an income statement based on the absorption costing concept.
| YoSan Inc. | ||
| Absorption Costing Income Statement | ||
| For the Month Ended July 31 | ||
| Sales | $ | |
| Cost of goods sold: | ||
| Cost of goods manufactured | $ | |
| Inventory, July 31 | ||
| Total cost of goods sold | ||
| Gross profit | $ | |
| Selling and administrative expenses | ||
| Operating income | $ | |
2. Prepare an income statement based on the variable costing concept.
| YoSan Inc. | ||
| Variable Costing Income Statement | ||
| For the Month Ended July 31 | ||
| Sales | $ | |
| Variable cost of goods sold: | ||
| Variable cost of goods manufactured | $ | |
| Inventory, July 31 | ||
| Total variable cost of goods sold | ||
| Manufacturing margin | $ | |
| Variable selling and administrative expenses | ||
| Contribution margin | $ | |
| Fixed costs: | ||
| Fixed manufacturing costs | $ | |
| Fixed selling and administrative expenses | ||
| Total fixed costs | ||
| Operating income | $ | |
In: Accounting
On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept:
| Joplin Company Absorption Costing Income Statement For the Month Ended April 30 |
||||
| Sales (4,000 units) | $64,000 | |||
| Cost of goods sold: | ||||
| Cost of goods manufactured (4,700 units) | $51,700 | |||
| Inventory, April 30 (700 units) | (7,700) | |||
| Total cost of goods sold | (44,000) | |||
| Gross profit | $20,000 | |||
| Selling and administrative expenses | (11,390) | |||
| Operating income | $8,610 | |||
If the fixed manufacturing costs were $12,408 and the fixed selling and administrative expenses were $5,580, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.
| Joplin Company | ||
| Variable Costing Income Statement | ||
| For the Month Ended April 30 | ||
| Sales | $fill in the blank 2 | |
| Variable cost of goods sold: | ||
| Variable cost of goods manufactured | $fill in the blank 4 | |
| Inventory, April 30 | fill in the blank 6 | |
| Total variable cost of goods sold | fill in the blank 8 | |
| Manufacturing margin | $fill in the blank 10 | |
| Variable selling and administrative expenses | fill in the blank 12 | |
| Contribution margin | $fill in the blank 14 | |
| Fixed costs: | ||
| Fixed manufacturing costs | $fill in the blank 16 | |
| Fixed selling and administrative expenses | fill in the blank 18 | |
| Total fixed costs | fill in the blank 20 | |
| Operating income | $fill in the blank 22 | |
In: Accounting
Variable Costing Income Statement
On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:
| Sales (20,000 units) | $1,520,000 | ||||
| Cost of goods sold: | |||||
| Cost of goods manufactured | $1,152,000 | ||||
| Less ending inventory (4,000 units) | 192,000 | ||||
| Cost of goods sold | 960,000 | ||||
| Gross profit | $560,000 | ||||
| Selling and administrative expenses | 112,000 | ||||
| Income from operations | $448,000 | ||||
a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $72,000 and the variable selling and administrative expenses were $51,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.
| Rhys Company | ||
| Income Statement-Variable Costing | ||
| For the Month Ended July 31 | ||
| Sales | $ | |
| Variable cost of goods sold: | ||
| Variable cost of goods manufactured | $ | |
| Less ending inventory | ||
| Variable cost of goods sold | ||
| Manufacturing margin | $ | |
| Variable selling and administrative expenses | ||
| Contribution margin | $ | |
| Fixed costs: | ||
| Fixed manufacturing costs | $ | |
| Fixed selling and administrative expenses | ||
| Income from operations | $ | |
b. Reconcile the absorption costing income from operations of $448,000 with the variable costing income from operations determined in (a).
| Reconciliation of Absorption and Variable Costing Income | |
| Absorption costing income from operations | $ |
| Variable costing income from operations | |
| Difference | $ |
In: Accounting