Question

During the most recent year, ABC Corp. had the following data: Beginning inventory in units           ...

During the most recent year, ABC Corp. had the following data:

Beginning inventory in units

           -  

Units produced

     16,000

Units sold ($125 per unit)

       15,000

Variable costs per unit:

      Direct materials

$        10

      Direct labor

$        18

      Variable overhead

$          6

Fixed costs:

      Fixed overhead per unit produced

$        25

      Fixed selling and administrative

$ 200,000

Required:

A. How many units are in ending inventory?

B. Using absorption costing, calculate the per-unit product cost. What is the value of ending inventory?

C. Using variable costing, calculate the per-unit product cost. What is the value of ending inventory?

D. Prepare an income statement using absorption costing.

E. Prepare an income statement using variable costing.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) ending inventory unit = 16000-15000 = 1000 Units

b) Unit product cost = 10+18+6+25 = 59 per unit

Ending inventory cost = 59*1000 = 59000

c) Unit product cost = 10+18+6 = 34 per unit

Ending inventory cost = 34*1000 = 34000

d) Income statement

Sales (15000*125) 1875000
Less: Cost of goods sold (15000*59) -885000
Gross profit 990000
Less: Selling and administrative expense -200000
Operating income 790000

e) Income statement

Sales (15000*125) 1875000
Less: Variable Cost of goods sold (15000*34) -510000
Contribution margin 1365000
Less: Fixed cost (200000+400000) -600000
Operating income 765000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
During the most recent year, Osterman Company had the following data: Units in beginning inventory ---...
During the most recent year, Osterman Company had the following data: Units in beginning inventory --- Units produced 10,250 Units sold ($49 per unit) 9,050 Variable costs per unit: Direct materials $8 Direct labor $5 Variable overhead $3 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. 2. Prepare an income statement using absorption costing.
During the most recent year, Osterman Company had the following data: Units in beginning inventory ---...
During the most recent year, Osterman Company had the following data: Units in beginning inventory --- Units produced 11,350 Units sold ($50 per unit) 9,400 Variable costs per unit: Direct materials $10 Direct labor $5 Variable overhead $3 Fixed costs: Fixed overhead per unit produced $4 Fixed selling and administrative expenses $138,500 Labels Add: Fixed expenses Less: Fixed expenses Amount Descriptions Contribution margin Cost of goods sold Fixed overhead Fixed selling and administrative expenses Gross margin Operating income Operating loss...
Variable-Costing Income Statement During the most recent year, Osterman Company had the following data: Units in...
Variable-Costing Income Statement During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under variable costing. $ 2. Prepare an income statement using variable costing. Enter amounts as positive numbers. Osterman...
The following Company, which has only one product, has provided the following data concerning its most...
The following Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price: $ 175 Units Data: Units in beginning inventory 0 Units produced 9,500 Units sold 8,000 Units in ending Inventory 1,500 Variable costs per unit: Direct materials $ 55 Direct labor $ 38 Variable manufacturing overhead $ 2 Variable selling and admin $ 10 Fixed costs: Fixed manufacturing overhead $ 300,000 Fixed selling and admin $ 125,000 REQUIRED: a....
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent...
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 107 Units in beginning inventory 910 Units produced 2,560 Units sold 3,160 Units in ending inventory 310 Variable costs per unit: Direct materials $ 21 Direct labor $ 21 Variable manufacturing overhead $ 1 Variable selling and administrative expense $ 15 Fixed costs: Fixed manufacturing overhead $ 71,680 Fixed selling and administrative expense $ 9,480 The company produces...
Hayes Inc. provided the following information for the current year: Beginning inventory 300 units Units produced...
Hayes Inc. provided the following information for the current year: Beginning inventory 300 units Units produced 950 units Units sold 994 units Selling price $ 350 /unit Direct materials $ 55 /unit Direct labor $ 36 /unit Variable manufacturing overhead $ 35 /unit Fixed manufacturing overhead $ 49,400 /year Variable selling/administrative costs $ 28 /unit Fixed selling/administrative costs $ 35,500 /year What is the unit product cost for the year using variable costing? Multiple Choice $178 $126 $154 $228 $228...
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations...
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity—at 20,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $ 80,000 Direct labor 101,400 Variable overhead 15,600 Fixed overhead 54,600 Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Direct Materials Cost $ Direct Labor Cost $...
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations...
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity—at 20,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $ 80,000 Direct labor 101,400 Variable overhead 15,600 Fixed overhead 54,600 Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Direct Materials Cost $ Direct Labor Cost $...
The Dean Corporation produces and sells a single product. The following data refer to the year...
The Dean Corporation produces and sells a single product. The following data refer to the year just completed:        Beginning inventory 0   Units produced 29,700   Units sold 22,700   Selling price per unit $ 469   Selling and administrative expenses:   Variable per unit $ 20   Fixed (total) $ 522,100   Manufacturing costs:   Direct materials cost per unit $ 206   Direct labor cost per unit $ 53   Variable manufacturing overhead cost per unit $ 37   Fixed manufacturing overhead (total) $ 415,800     Assume that...
XYZ Company, which has only one product, has provided the following data concerning its most recent...
XYZ Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $110 Units in beginning inventory 0 Units produced 4,600 Units sold 4,200 Units in ending inventory 400 Variable costs per unit: Direct materials $46 Direct labour $28 Variable manufacturing overhead $5 Variable selling and administrative $10 Fixed costs: Fixed manufacturing overhead $55,200 Fixed selling and administrative $25,200 Required: a) What is the unit product cost for the month under...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT