(a) What is the amount of the inventoriable cost per unit? (b) Calculate the following under Variable Costing: Revenue [Select] Cost of Goods Sold [Select] Select [Select]
(a) What is the amount of the inventoriable cost per unit? (b) Calculate the following under Variable Costing: Revenue [Select] Cost of Goods Sold [Select] Select [Select]
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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![Spartans Golf Company sells a special putter for $20 each. In October 2023, it sold 28,000 putters
while manufacturing 30,000. There was no beginning inventory on October 1. Production information
for October was:
Direct materials cost (per unit)
Direct manufacturing labor rate (per hour)
$2.00
$24.00
Direct manufacturing labor per unit
15 minutes
Variable manufacturing overhead (per unit)
$4.00
Variable selling expenses (per unit sold)
$2.00
Fixed manufacturing overhead
$132,000
Fixed selling and administrative costs
$ 40,000
(Hint: calculate the per-unit labor rates first; then calculate the per-unit variable and fixed COGS)
(a) What is the amount of the inventoriable cost per unit?
[Select]
(b) Calculate the following under Variable Costing:
Revenue
[Select]
Cost of Goods Sold
[Select]
Operating Income
[Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1449914f-8eca-43bc-87ff-7e50e88e5bf7%2F18788bbb-1409-4e53-b9e5-6f5b25369a1d%2Fq34ndmj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Spartans Golf Company sells a special putter for $20 each. In October 2023, it sold 28,000 putters
while manufacturing 30,000. There was no beginning inventory on October 1. Production information
for October was:
Direct materials cost (per unit)
Direct manufacturing labor rate (per hour)
$2.00
$24.00
Direct manufacturing labor per unit
15 minutes
Variable manufacturing overhead (per unit)
$4.00
Variable selling expenses (per unit sold)
$2.00
Fixed manufacturing overhead
$132,000
Fixed selling and administrative costs
$ 40,000
(Hint: calculate the per-unit labor rates first; then calculate the per-unit variable and fixed COGS)
(a) What is the amount of the inventoriable cost per unit?
[Select]
(b) Calculate the following under Variable Costing:
Revenue
[Select]
Cost of Goods Sold
[Select]
Operating Income
[Select]
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Step 1: Introduction of Variable Costing
VIEWStep 2: Calculation of Product Cost Per Unit by Absorption and Variable Costing
VIEWStep 3: Calculation of the Ending Inventory by Absorption and Variable Costing
VIEWStep 4: Calculation of the Net Operating Income by Absorption Costing
VIEWStep 5: Calculation of the Net Operating Income by Variable Costing
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