YouTubeO MapsEstimated Income Statements, using Absorption and Variable CostingPrior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results:Sales (27,200 x $96)$2,611,200Manufacturing costs (27,200 units):Direct materials1,572,160Direct labor372,640Variable factory overhead174,080Fixed factory overhead206,720Fixed selling and administrative expenses56,200Variable selling and administrative expenses68,000The company is evaluating a proposal to manufacture 30,400 units instead of 27,200 units, thus creating an ending inventory of 3,200 units. Manufacturing the additionalunits will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses.a. 1. Prepare an estimated income statement, comparing operating results if 27,200 and 30,400 units are manufactured in the absorption costing format. If an amountbox does not require an entry leave it blank.Marshall Inc.Absorption Costing Income StatementFor the Month Ending October 3127,200 Units Manufactured30,400 Units ManufacturedCost of goods sold:PreviousNext Hable factory overnead Costs, totaf fixed factory overnead cost, of total seng and adlNistrauive expenses.uun 'saips afua. 1. Prepare an estimated income statement, comparing operating results if 27,200 and 30,400 units are manufactured in the absorption costing format. If an amountbox does not require an entry leave it blank.Marshall Inc.Absorption Costing Income StatementFor the Month Ending October 3127,200 Units Manufactured30,400 Units ManufacturedCost of goods sold:a. 2. Prepare an estimated income statement, comparing operating results27.200 and 30,400 units are manufactured in the variable costing format. If an amount boxdoes not require an entry leave it blank.Marshall Inc.Variable Costing Income StatementFor the Month Ending October 3127,200 Units Manufactured30,400 Units ManufacturedVariable cost of goods sold:PreviousNextMacBook Air

Name: YouTubeO MapsEstimated Income Statements, using Absorption and Variab
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: YouTubeO MapsEstimated Income Statements, using Absorption and Variable CostingPrior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results:Sales (27,200 x $96)$2,611,200Manufacturing costs (27,20

Marshall Inc. Absorption Costing Income Statement For the Month 31 particulars…

Business

Accounting

cimated Income Statements, using Absorption and Varlable Costing or to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: les (27,200 x $96) $2,611,200 anufacturing costs (27,200 units): Direct materials 1,572,160 Direct labor 372,640 Variable factory overhead 174,080 Fixed factory overhead 206,720 Fixed selling and administrative expenses 56,200 Variable selling and administrative expenses 68,000 e company is evaluating a proposal to manufacture 30,400 units instead of 27,200 units, thus creating an ending inventory of 3,200 units. Manufacturing the addi ts will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. 1. Prepare an estimated income statement, comparing operating results if 27,200 and 30,400 units are manufactured in the absorption costing format. If an amo x does not require an entry leave it blank.

cimated Income Statements, using Absorption and Varlable Costing or to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: les (27,200 x $96) $2,611,200 anufacturing costs (27,200 units): Direct materials 1,572,160 Direct labor 372,640 Variable factory overhead 174,080 Fixed factory overhead 206,720 Fixed selling and administrative expenses 56,200 Variable selling and administrative expenses 68,000 e company is evaluating a proposal to manufacture 30,400 units instead of 27,200 units, thus creating an ending inventory of 3,200 units. Manufacturing the addi ts will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. 1. Prepare an estimated income statement, comparing operating results if 27,200 and 30,400 units are manufactured in the absorption costing format. If an amo x does not require an entry leave it blank.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 8E: Estimated income statements, using absorption and variable costing Prior to the first month of...

See similar textbooks

Similar questions

Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Last month, 4,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. 2. What is the total product cost for last month? 3. What is the unit product cost for last month?
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Summarized data for Walrus Co. for its first year of operations are: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costing
OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.