FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:During its first year of operations, Connor Company paid $26,310 for direct materials and $18,100 In wages for production workers. Lease payments and utilities on the production facilities
amounted to $7,100. General, selling, and administrative expenses were $8,100. The company produced 5,100 units and sold 4,100 units for $15.10 a unit. The average cost to produce one unit
Is which of the following amounts?
Multiple Choice
O
O
O
O
$10.10
$8.15
$12.56
$11.69
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- want the answer of this questionarrow_forwardKingston Company sells its product for $300 per unit. The company's accountant provided the following cost information: Manufacturing costs Selling costs Administrative costs $20,300 + 46% of sales $13,100+ 23% of sales $25,400+ 8% of sales. What is Kingston Company's contribution margin ratio?arrow_forwardThe following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $500 each. Variable costs Plastic for casing Wages of assembly workers Drum stands Sales commissions Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Lease of equipment for sales staff Accounting staff salaries Administrative salaries Required 1 Required 2 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute contribution margin per unit and contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to income? Sales Variable costs: Complete this question by entering your answers in the tabs below. Contribution margin Fixed costs $ 17,000 82,000 Required 3 Income 26,000 15,000 Prepare a contribution margin income statement for the year. TIGHT DRUMS COMPANY Contribution Margin Income Statement For Year Ended…arrow_forward
- Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,150 rackets and sold 4,980. Each racket was sold at a price of $90. Fixed overhead costs are $79,950 per year, and fixed selling and administrative costs are $65,600 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Prepare an income statement under variable costing. Contribution margin Less: Fixed expenses Income X Answer is not complete. Sales Less: Variable expenses Variable selling and administrative expenses Variable cost of goods sold ACES INCORPORATED Income Statement (Variable Costing) Fixed overhead Fixed selling and administrative expenses $ 448,200 2852 $12arrow_forwardAces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,800 rackets and sold 4,700. Each racket was sold at a price of $88. Fixed overhead costs are $74,240 for the year, and fixed selling and administrative costs are $65,000 for the year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Required: Prepare an income statement under variable costing. $ 11.94 7.94 4.92 1.80arrow_forwardAces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,600 rackets and sold 4,500. Each racket was sold at a price of $86. Fixed overhead costs are $70,560 for the year, and fixed selling and administrative costs are $64,800 for the year. The company also reports the following per unit variable costs for the year: Direct materials Direct labor Variable overhead Variable selling and administrative expenses Required: Prepare an income statement under absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) Sales Cost of goods sold Gross profit Selling and administrative expenses Income $ $ 387,000 387,000 $ 387,000 $ 11.88 7.88 4.84 1.60arrow_forward
- Swisher, Incorporated reports the following annual cost data for its single product: Normal production level 30,000 units Direct materials $6.40 per unit Direct labor $3.93 per unit Variable overhead $5.80 per unit Fixed overhead $150,000 in total This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's income increase or decrease under variable costing? $60,000 decrease. b. $90,000 decrease. c.There is no change in gross margin. d. $90,000 increase. e. $60,000 increase.arrow_forwardYancey, Inc. reports the following information: Units produced Units sold Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 580 units 580 units $130 per unit $10 per unit $25 per unit - $30 per unit $22,000 per year Variable selling and administrative costs Fixed selling and administrative costs $20 per unit $15,000 per year What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.) OA. $95.00 OB. $72.93 OC. $102.93 OD. $62.93arrow_forwardThe following information for the past year for the Blaine Corporation has been provided: Fixed costs: Manufacturing $130,000 Marketing 18,000 Administrative 21,000 Variable costs: Manufacturing $113,000 Marketing 35,000 Administrative 38,000 During the year, the company produced and sold 60,000units of product at a selling price of $19.19 per unit. There was no beginning inventory of product at the beginning of the year. What is the contribution margin for the year?arrow_forward
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