CABADBARAN CORP., produces non-fat yogurt which it sells to restaurants and ice cream shops. Theproduct is sold in 10-gallon containers, which have the following price and variable costs.Sales priceDirect materialsDirect laborVariable overheadBudgeted fixed overhead in 2019, the company's first year of operations, was P600,000. Actualproduction was 150,000 10-gallon containers, of which 125,000 were sold. CABADBARAN incurred thefollowing selling and administrative expenses.FixedVariableREQUIREMENTS:(a) Compute the unit product cost per container of frozen yogurt under variable costing andabsorption costing, respectively.(b)2.P30104P100,000 for the yearP2 per container soldPrepare the operating income statements for 2019 using absorption costing and variable costing.Reconcile the operating income reported under the two methods.(c)(d)Compute the throughput margin and income under throughput costing.

CABADBARAN CORP., produces non-fat yogurt which it sells to restaurants and ice cream shops. The product is sold in 10-gallon containers, which have the following price and variable costs. Sales price P30 10 Direct materials Direct labor Variable overhead Budgeted fixed overhead in 2019, the company's first year of operations, was P600,000. Actual procuction was 150,000 10-gallon containers, of which 125,000 were sold. CABADBARAN incurred the following selling and acministrative expenses. Fixed Variable REQUIREMENTS: (a) Compute the unit product cost per container of frozen yogurt under variable costing and absorption costing, respectively. (b) Prepare the operating income statements for 2019 using absorption costing and variable costing. (c) Reconcile the operating income reported under the two methods. 4 P100,000 for the year P2 per container sold 2.

CABADBARAN CORP., produces non-fat yogurt which it sells to restaurants and ice cream shops. The product is sold in 10-gallon containers, which have the following price and variable costs. Sales price P30 10 Direct materials Direct labor Variable overhead Budgeted fixed overhead in 2019, the company's first year of operations, was P600,000. Actual procuction was 150,000 10-gallon containers, of which 125,000 were sold. CABADBARAN incurred the following selling and acministrative expenses. Fixed Variable REQUIREMENTS: (a) Compute the unit product cost per container of frozen yogurt under variable costing and absorption costing, respectively. (b) Prepare the operating income statements for 2019 using absorption costing and variable costing. (c) Reconcile the operating income reported under the two methods. 4 P100,000 for the year P2 per container sold 2.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
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