A business operated at 100% of capacity during its first month, with the following results: Sales (104 units)   $520,000 Production costs (130 units):        Direct materials $65,000        Direct labor 16,250        Variable factory overhead 29,250    Fixed factory overhead 26,000 136,500 Operating expenses:        Variable operating expenses $5,770        Fixed operating expenses 3,540 9,310 The amount of contribution margin that would be reported on the variable costing income statement is a.$422,290 b.$510,690 c.$519,870 d.$425,830

Q: Rose company has a relevant range of production between 10,000 and 25,000 units. The following cost…

A: Total variable cost per unit = Direct materials + Direct labore cost + indirect labor + variable…

Q: Complete the Contribution Margin Income Statement below with the following data: Sales per unit,…

A: A contribution margin is an excess value of sales revenue over the variable cost. It is also an…

Q: Columbia Corporation Income Statement For the Month ended November 30 Sales ($20 per unit) Variable…

A: Product cost refers to the cost incurred in the factory for the production of goods and hence…

Q: shmart, Inc., began operations this year. The company produced 1,000 units and sold 1,000 units at a…

A: Solution: Net income under absorption costing will be computed by first determining gross profit and…

Q: The following information was collected for the first year of manufacturing for Appliance Apps:…

A: Variable cost of Goods Sold per unit = Direct material + direct labor + variable manufacturing…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Absorption costing also called as historical costing is the practice of charging both fixed and…

Q: Information from SAAX, Inc's first year of operations is available below: Sales in units 5,000…

A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…

Q: The Peterson company incurred the following revenue and costs in the month of May: Sales Revenue…

A: Gross margin  represents the percentage of revenue that exceeds the cost of goods sold (COGS). It is…

Q: .A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Introduction: Variable costing: Variable costing product cost = Direct materials + Direct labor +…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…

Q: Summarized data for Walrus Co. for its first year of operations are: Sales (90,000 units)…

A: Income statement under Absorption costing Income statement under Variable costing

Q: Assume the following information for a company that produced 10,000 units and sold 9,000 units…

A: Step 1: Gross margin can be calculated by subtracting the Cost of goods sold (product cost) from the…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Variable costing:  Sales $90,000Product cost (Variable manufacturing cost)$40,000 Direct…

Q: Prior to the first month of operations ending October 31, Marshall Inc. estimated the following…

A: Income statement in the cost accounting can be prepared using two methods; Absorption costing and…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Contribution Margin: To get the contribution margin, take the selling price per unit and subtract…

Q: Per unit information for Product M of Adolf Corporation is provided below: $80 per unit Direct…

A: Lets understand the basics. In variable costing period cost are total of fixed cost and all variable…

Q: Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a…

A:

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: One of the three crucial financial statements along with the cash flow statement and the balance…

Q: Barnes Company reports the following for its product for its first year of operations.   Direct…

A: Contribution. Margin: "Contribution margin tells you the aggregate amount of revenue available after…

Q: Prepare an estimated income statement, comparing operating results if 23,200 and 25,600 units are…

A: Income Statement is one of the important financial statement to be prepared at the year-end along…

Q: a. 1. Prepare an estimated income statement, comparing operating results if 25,600 and 28,800 units…

A: To determine the product cost of a company two types of costing methods are used which are variable…

Q: In the month of March, Pharoah Salon services 630 clients at an average price of $100. During the…

A: Formulas: A. Contribution margin = Total sales - variable cost -------------------------------------…

Q: Consider the following information for Presidio Inc.'s most recent year of operations. Number of…

A: Income statement is the financial statement that records all the income and expenses of the…

Q: Carolina Corporation, which uses throughput costing, began operations at the start of the current…

A: Total cost is the amount of money incurred by the entity on the making and selling of the goods. It…

Q: The total sales revenue of Black Stone Crushing Company was $150,000 for the last year. The fixed…

A: We have the following information: Total Sales Revenue: $150,000 Variable Expenses:Manufacturing:…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Under variable costing, fixed manufacturing overhead is considered as a period cost and deducted a…

Q: Crane Corporation produces and sells two products, Basic and Super. Data for activity during March…

A: Net income or loss is the amount of income earned or loss incurred after deducting all the expenses…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Preparation of income statement under absorption costing and variable costing system are as follows.

Q: The Peterson company incurred the following revenue and costs in the month of May: Sales Revenue S…

A: Gross margin  is difference between  revenue and cost of goods sold (COGS). It is a profitability…

Q: If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the…

A: The difference between Total Sales and Total Variable Cost is known as Contribution. All the direct…

Q: Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the…

A: The variable costing method only considers the direct variable costs which are related to the…

Q: Sales (5,000 units) ariable expenses: Cost of goods sold Selling (10% of sales) Contribution margin…

A: Using absorption costing, the fixed manufcaturing overhead costs are also included in the product…

Q: Prepare an income statement for Jomar Box Company under the following methods: a.Absorption Costing…

A: The major difference between marginal costing and absorption costing is treatment for closing stock.…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Operating Income:- Operating income is refers to the income, which shows the amount of profit that a…

Q: A firm has a net income of $918,000 based on variable costing. Beginning and ending inventories…

A:

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: In variable costing statement ,we will value the inventory at variable factory cost . Fixed factory…

Q: The following information is for a company that produced 10,000 units and sold 9,0000 units during…

A: Solution: The difference in variable cost and absorption is that of treatment of fixed manufacturing…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Variable costing approach means where goods are valued at variable manufacturing cost only and fixed…

Q: A company's operating income was $75,000 using variable costing for a given period. Beginning and…

A: Under variable costing, only variable costs are considered as product cost but under absorption…

Q: A company produced and sold 3,400 units of its only product this year. The sales price is $162 per…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: a.  Yountz Company budgets sales of $1,130,000, fixed costs of $68,600, and variable costs of…

A: A.)  Given :  Sales-1,130,000 Variable costs- $305,100 Contribution Margin= Sales - Variable Costs…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: The contribution margin is calculated by subtracting all variable expenses from revenue in a…

Q: Assume the following information for a company that produced 10,000 units and sold 9,000 units…

A: Absorption Costing :— Under this method, production cost is the sum of direct material, direct…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.