1. Delight Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price. $110 Units in beginning inventory. Units produced 4,600 4,200 400 Units sold . Units in ending inventory . Variable costs per unit: Direct materials ... Direct labor. Variable manufacturing overhead Variable selling and administrative... $46 $28 $5 $10 Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative.. $55,200 $25,200 Required: a. What is the unit product cost for the month under absorption costing and variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)

1. Delight Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price. $110 Units in beginning inventory. Units produced 4,600 4,200 400 Units sold . Units in ending inventory . Variable costs per unit: Direct materials ... Direct labor. Variable manufacturing overhead Variable selling and administrative... $46 $28 $5 $10 Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative.. $55,200 $25,200 Required: a. What is the unit product cost for the month under absorption costing and variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)

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 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

Galino Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory. Units produced Units sold.. Units in ending inventory. Variable costs per unit: Direct materials.. Direct labor....... Variable manufacturing overhead.. Variable selling and administrative Fixed costs: Fixed manufacturing overhead............... Fixed selling and administrative $99 B. $31,200 C. $13,000 D. $135,600 0 2,900 2,600 300 $27 $11 $6 $7 $104,400 $13,000 109. What is the total period cost for the month under the absorption costing approach? A. $104.400
WorrelCorporation manufactures avariety of products. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year............P71,000 Variable costing net operating income, this year............P92,000 Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year..............P2,000 Fixed manufacturing overhead costs released from inventory under absorption costing, this year..............P11,000 Required: a.Determine the absorption costing net operating income last year. b.Determine the absorption costing net operating income this year.
Jarvix Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price... $111 Units in beginning inventory Units produced... Units sold. .. Units in ending inventory 400 8,800 8,900 300 Variable costs per unit: Direct materials Direct labor.... Variable manufacturing overhead.... Variable selling and administrative... $34 $37 $3 $9 ...*. ***** Fixed costs: Fixed manufacturing overhead Fixed selling and administrative.... $61,600 $169,100 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. A. What is the net operating income for the month under variable costing? B. What is the net operating income for the month under absorption costing?
1. Cabaret Corporation produces a single product. Data concerning the company's operations last year appear below: Units in beginning inventory... Units produced. Units sold....... Selling price per unit.. Variable costs per unit: Direct materials. Direct labor. Variable manufacturing overhead.. Variable selling and administrative. Fixed costs in total: Fixed manufacturing overhead... Fixed selling and administrative... Assume direct labor is a variable cost. 10,000 9,000 $60 $15 $5 $2 $4 $200,00 0 $70,000 Required: a. Compute the unit product cost under both absorption and variable costing. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory $ 111 0 7,500 7,200 300 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the net operating income for the month under absorption costing? $24 $ 34 $ 1 $5 $217,500 $115, 200
182. Leigh Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory. Units produced. Units sold. Units in ending inventory. Variable costs per unit: Direct materials. Direct labor Variable manufacturing overhead.. Variable selling and administrative.......... Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative.... $100 300 1,200 1,400 100 $17 $59 $4 $8 $9,600 $1,400 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing?
Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units 600 Units produced 2,800 Units sold 2,900 Ending balance, in units 500 Production costs: Variable manufacturing costs per unit $60 Total fixed manufacturing costs $42,000 What is the unit product cost for the year using absorption costing? A. $84 B. $75 C. $130 D. $74
Given the following: Units in beginning inventory........ Units produced. Units sold Units in ending inventory. 7,000 6,900 100 ******* Variable costs per unit: Direct materials.. $46 Direct labor... $41 Variable manufacturing overhead Variable selling and administrative... Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative... $3 ***** S9 $28,000 $75,900 What is the variable costing unit product cost? Multiple Choice $103 $90 $99 $94
Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.
Ober Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense Required: $ 127 0 8,970 8,540 430 $ 37 $ 36.50 $ 5.50 $ 12.50 $ 183,885 $ 109,900 a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing.
Grace Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $6,400 $18,600 $5,600 SS $(20,400) $ $ $ 95 0 3,500 3,100 400 22 What is the net operating income for the month under absorption costing? 2975 39 55,900 3,000
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the total period cost for the month under absorption costing? $ 133 0 7,000 6,800 200 $ 41 $ 57 $ 5 $4 $133,000 $ 34,000