Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. Sales price per unit Units produced this year Units sold this year $ 355 per unit 123,000 units 123,000 units Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor $ 19 per unit $ 4,635,000 per year $ 47 per unit $ 69 per unit $ 35 per unit Variable overhead Fixed overhead $ 8,118,000 per year

Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. Sales price per unit Units produced this year Units sold this year $ 355 per unit 123,000 units 123,000 units Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor $ 19 per unit $ 4,635,000 per year $ 47 per unit $ 69 per unit $ 35 per unit Variable overhead Fixed overhead $ 8,118,000 per year

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Subject: Cost management & accounting Question No. 3: Absorption and Marginal CostingThe Dorset Corporation produces and sells a single product. The following data refer to the year just completed:Beginning inventory 0Units produced 10,000Units sold 8,000Selling price per unit $50Selling and administrative expenses:Variable per unit $5Fixed per year $60,000Manufacturing costs:Direct materials cost per unit $10Direct labor cost per unit $6Variable manufacturing overhead cost per unit $5Fixed manufacturing overhead per year $80,000Assume that direct labor is a variable cost.Required:a. Prepare an income statement for the year using absorption costing and variable costingb. Reconcile the absorption costing and variable costing net operating income figures
Required information Exercise 6-11 (Algo) Absorption costing and variable costing income statements LO P2 [The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. Sales price per unit Units produced this year $ 420 per unit 136,000 units 136,000 units Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead: Fixed overhead Exercise 6-11 (Algo) Part 1 1. Prepare the current-year income statement using variable costing. Sales Less: Variable expenses Income $ 32 per unit $4,700,000 per year $ 60 per unit $82 per unit $ 48 per unit $ 10,744,000 per year Exercise 6-11 (Algo) Part 2 OAK MART Income Statement (Variable Costing) Income $ 57,120,000 2. Prepare the current-year income statement using absorption costing. OAK MART Income Statement (Absorption Costing) 0
Subject: Cost management & accountng MCQ's Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced 9,000 7,000 Units sold 6,000 7,000 Units in ending inventory 3,000 3,0000 The unit product cost under variable costing in Year 1 is closest to: $31.00 $28.00 $24.00 $35.00
Question No. 4: Absorption and Marginal Costing The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0 Units produced 9,000 Units sold 7,000 Selling price per unit $ 47 Selling and administrative expenses: Variable per unit $ 4 Fixed per year $ 58,000 Manufacturing costs: Direct materials cost per unit $ 10 Direct labor cost per unit $ 6 Variable manufacturing overhead cost per unit $ 5 Fixed manufacturing overhead per year $ 90,000 Assume that direct labor is a variable cost. Required: Prepare an income statement for the year using absorption costing Prepare an income statement for the year using variable costing Reconcile the absorption costing and variable costing net operating income figures
Question No.3: Absorption and Marginal Costing The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0 Units produced 9,000 Units sold 7,000 Selling price per unit $ 47 Selling and administrative expenses: Variable per unit $ 4 Fixed per year $ 58,000 Manufacturing costs: Direct materials cost per unit $ 10 Direct labor cost per unit $ 6 Variable manufacturing overhead cost per unit $ 5 Fixed manufacturing overhead per year $ 90,000 Assume that direct labor is a variable cost. Required: a) Prepare an income statement for the year using absorption costing b) Prepare an income statement for the year using variable costing c) Reconcile the absorption costing and variable costing net operating income figures