High Country, Incorporated, produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first mon of the plant's operation: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Required: 1. Assume that the company uses absorption costing a. Calculate the unit product cost. 49,000 44,000 $ 81 Direct materials cost per unit $ 14 Direct labor cost per unit $ 10 $3 Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) $ 735,000 Management is anxious to assess the profitability of the new camp cot during the month of May. b. Prepare an income statement for May 2. Assume that the company uses variable costing $3 $ 567,000

High Country, Incorporated, produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first mon of the plant's operation: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Required: 1. Assume that the company uses absorption costing a. Calculate the unit product cost. 49,000 44,000 $ 81 Direct materials cost per unit $ 14 Direct labor cost per unit $ 10 $3 Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) $ 735,000 Management is anxious to assess the profitability of the new camp cot during the month of May. b. Prepare an income statement for May 2. Assume that the company uses variable costing $3 $ 567,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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High Country, Incorporated, produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 48,000 Units sold 43,000 Selling price per unit $ 82 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 557,000 Manufacturing costs: Direct materials cost per unit $ 15 Direct labor cost per unit $ 6 Variable manufacturing overhead cost per unit $ 3 Fixed manufacturing overhead cost (per month) $ 816,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Calculate the…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 10,000 Units sold 8,000 Selling price per unit $ 75 Selling and administrative expenses: Variable per unit $ 6 Fixed (per month) $ 200,000 Manufacturing costs: Direct materials cost per unit $ 20 Direct labor cost per unit $ 8 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 100,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Compute: 1. Let's say that the company uses absorption costing. a. Calculate the unit product cost. b. Compute an income statement for May. 2. Let's say that the company uses variable costing. a. Calculate…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 46,000 Units sold 41,000 Selling price per unit $ 79 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 562,000 Manufacturing costs: Direct materials cost per unit $ 15 Direct labor cost per unit $ 8 Variable manufacturing overhead cost per unit $ 3 Fixed manufacturing overhead cost (per month) $ 828,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a.…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 46,000 Units sold 41,000 Selling price per unit $ 79 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 562,000 Manufacturing costs: Direct materials cost per unit $ 15 Direct labor cost per unit $ 8 Variable manufacturing overhead cost per unit $ 3 Fixed manufacturing overhead cost (per month) $ 828,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a.…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 39,000 Units sold 34,000 Selling price per unit $ 80 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 559,000 Manufacturing costs: Direct materials cost per unit $ 16 Direct labor cost per unit $ 8 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 780,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a.…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 45,000 Units sold 40,000 Selling price per unit $ 81 Selling and administrative expenses: Variable per unit $ 2 Fixed (per month) $ 561,000 Manufacturing costs: Direct materials cost per unit $ 15 Direct labor cost per unit $ 9 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 720,000 Management is anxious to assess the profitability of the new camp cot during the month of May. 2. Assume that the company uses variable costing. b. Prepare a contribution format income statement for May. Prepare a contribution format income statement for May. Assume that the…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 45,000 Units sold 40,000 Selling price per unit $ 81 Selling and administrative expenses: Variable per unit $ 2 Fixed (per month) $ 561,000 Manufacturing costs: Direct materials cost per unit $ 15 Direct labor cost per unit $ 9 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 720,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a.…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 37,000 Units sold 32,000 Selling price per unit $ 83 Selling and administrative expenses: Variable per unit $ 2 Fixed (per month) $ 559,000 Manufacturing costs: Direct materials cost per unit $ 14 Direct labor cost per unit $ 6 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 740,000 Management is anxious to assess the profitability of the new camp cot during the month of May. 1. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May.
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) $1,000,000 5 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May Req 18 8 50,000 45,000 79 $ 560,000 $ Reg 2A Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare…
High Country, Incorporated, produces and sells many recreational products. The company just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: Beginning inventory 0 Units produced 48, 000 Units sold 43,000 Selling price per unit $ 85 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 565, 000 Manufacturing costs: Direct materials cost per unit $ 18 Direct labor cost per unit $ 9 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 912, 000 Required: Assume the company uses absorption costing. Calculate the camp cot's unit product cost. Prepare an income statement for May. Assume the company uses variable costing. Calculate the camp cot's unit product cost. Prepare a contribution format income statement for May.
High Country, Incorporated, produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 0 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May. 40,000 35,000 $81 $4 $ 562,000 Management is anxious to assess the profitability of the new camp cot during the…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) 2. Assume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for May. Req 1A Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May. Req 1B Req ZA…