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- Question 1 During Goodluck Company's first 2 years of operations, the company reported the following net income as follows: Year 1 Year 2 Sales @ $25 Cost of goods sold @ $18 per unit Gross profit Selling and administrative expenses per unit $1,000,000 $1.250,000 (720,000) (900,000) 280,000 350,000 (210,000) (230,000) ($2 per unit variable; $130 fixed each year) Net income 70,000 120,000 The company's $18 unit product cost is computed as follows: Direct materials $4 Direct labour $7 Variable Manufacturing overhead Fixed manufacturing overhead ($270,000 + 45,000 units $1 $6 Production and cost data for the two years are Year 1 Year 2 Units produced Units sold 45,000 40,000 45,000 50,000 Required: а) Compute the product cost. b) Prepare a variable costing contribution format income for Year 1 and Year 2O Problem Set: Module 4 1. EX.06.01 2. PR.06.02A ALGO 3. BE.06.02.ALGO 4. BE.06.03.ALGO cengagenow.com ● Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $188 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit Expenses: Selling expenses Administrative expenses Total expenses Cost of goods sold Selling expenses Administrative expenses Total variable costs Total fixed costs $16,000,000 10,600,000 Operating income The division of costs between variable and fixed is as follows: Fixed Unit variable cost Unit contribution margin + 40 Variable 70% 75% 50% $188,000,000 (101,000,000) $87,000,000 (26,600,000) $60,400,000 Management is considering a plant expansion program for the following year that will permit an increase of $11,280,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the…3.9 The following data were taken from the records of C5 Drinks Company for the years ending Year 1 and Year 2 Year 1 Year 2 In units Inventory, beginning 0 7,000 Production 20,000 18,000 Available for sale 20,000 25,000 Units sold 13,000 23,000 Inventory ending 7,000 2,000 Sales (P20 per unit) P260,000 P460,000 Variable manufacturing cost (P7.50 per unit) 150,000 135,000 Fixed manufacturing costs 50,000 54,000 Selling and administrative (60% fixed, 40% variable) 45,000 75,000 Instructions: Determine the net income under absorption costing Year 1 and Year 2. Determine the…
- I. Manly Company has the following data available for gross profit analysis : Product A Product B Product C P45,000 33,750 7,500 20x1 Total P510,000 Sales P225,000 Cost of sales 180,000 22,500 P240,000 210,000 30,000 423,750 60,000 Units Product A P360,000 Cost of sales 270,000 30,000 Product B P270,000 Product C Total P660,000 20x2 Sales P30,000 24,000 6,000 225,000 519,000 66,000 Units 30,000 Required: Prepare a statement accounting for variation in gross profit taking into account the sales mix factor.58 Charleston, Inc. had the following information: Year 2 Year 1 Net Sales 210,000 194,800 Cost of goods sold 128,000 140,600 Operating Expenses 34,400 23,000 Net Income 47,600 31,200 Using vertical analysis for Year 1, what is the percentage of cost of goods sold and operating expenses, respectively? Group of answer choices 11.8% and 27.8% 72.2% and 16.0% 16.0% and 11.8% 61.0% and 22.7% 61.0% and 16.4% 16.4% and 39.0% 72.2% and 11.8%20. Hardigan Manufacturing Company reported the following year-end information: Beginning work in process inventory Cost of goods manufactured Beginning finished goods inventory Ending work in process inventory Ending finished goods inventory $80,000 So50,000 S00,000 S70,000 $50,000 How much is Hardigan's cost of goods sold for the year? a $970,000 b. $1,000,000 c. S060,000 d. S060,000
- TB MC Qu. 2-61 (Algo) The following income statements are provided... The following income statements are provided for Li Company's last two years of operation: Year 1 Year 2 Number of units produced and sold 4,200 Sales revenue 009 $71,760 $65,520 Cost of goods sold Gross margin General, selling, and administrative expenses 39,760 36,460 000 17,540 18,820 090 Net income $13,180 $11,520 Assuming that cost behavior did not change over the two-year period, what is the annual amount of the company's fixed manufacturing overhead? Multiple Choice ) $1,810 $3,620 $5,620 None of these < Prev 3 of search ANENProblem: AAA Company produces and sells Product X: Annual Demand 24,000 units Annual cost to held one unit of inventory P11.52 Order Cost P38.40 Beg. Inventory P 0 a. What is the Economic Order Quantity? b. How much is the total Order Costs? c. How much is the total Carrying Costs?Problem B. The following data were taken from records of C5 Drinks Company for the years ending Year 1 and year 2 In units Year 1 Year 2 Inventory, beginning 7,000 20,000 20,000 13,000 7,000 Production 18,000 Available for sale 25,000 23,000 2,000 Units sold Inventory ending Sale (P20 per unit) P260,000 P460,000 Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing cost Selling and administrative (60% fixed, 40% variable) 150,000 135,000 50,000 54,000 45,000 75,000 8. Determine the net income under variable costing for Year 2.
- 40 The following information is taken from the financial statements of Clybourn Company for the current year: Current Assets $408,000 Total Assets 903,000 Cost of Goods Sold 663,000 Gross Profit 213,000 Net Income 133,000 On a common size income statement for the year, what is the percentage that would be shown next to the dollar amount of sales revenue? Multiple Choice 100% 15% 62% O Cannot be determinedPROBLEM 14: MMM Company started operations in 2019. The following data are abstracted from the company's production and sales records: 2019 2020 2021 of units Number produced Number of units sold Unit production cost 116,250 108,750 P 4.50 P 5.20 P 5.80 900,000 120,000 75,000 101,250 97,500 Sales revenue 600,000 975,000 19. Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is: PROBLEM 15: The following quarterly cost data have been accumulated for New DDD Manufacturing, Inc.: Raw materials, 1/1/2022 Purchases of raw materials 10,000 units at P6.00 8,500 units at P7.00 11,000 units at P7.50 Raw materials transferred to work in process Work in process, 1/1/2022 Direct labor Manufacturing overhead Work in process, 3/31/2022 21,500 units 5,600 units at P13.50 P 250,000 325,000 4,200 units at P13.75 20. If New Dehi uses the FIFO method for valuing raw materials inventories, compute for the cost of goods manufactured for the quarter ended March 31,…PROBLEM 14: MMM Company started operations in 2019. The following data are abstractedfrom the company’s production and sales records: 2019 2020 2021 Number of units produced 120,000 116,250 101,250 Number of units sold 75,000 108,750 97,500 Unit production cost P 4.50 P 5.20 P 5.80 Sales revenue 600,000 900,000 975,000 Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is:
