Hamilton Inc. planned and actually manufactured 250,000 units of its single product in 2022, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (non-manufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (non-manufacturing) costs totalled $370,000. Hamilton sold 110,000 units of product at $45 per unit. Required 1. Hamilton's 2022 operating income using absorption costing is (a) $4,700,000, (b) $1,060,000, (c) $640,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations. 2. Hamilton's 2022 operating income using variable costing is (a) $4,700,000, (b) $1,060,000, (c) $640,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations. Requirement 1. Hamilton's 2022 operating income using absorption costing is (a) $1,060,000, (b) $640,000, (c) $4,700,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting calculations. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign for an operating loss.) Absorption costing Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct: Ending inventory Cost of goods sold Gross margin Variable operating costs Fixed operating costs Operating income
Hamilton Inc. planned and actually manufactured 250,000 units of its single product in 2022, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (non-manufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (non-manufacturing) costs totalled $370,000. Hamilton sold 110,000 units of product at $45 per unit. Required 1. Hamilton's 2022 operating income using absorption costing is (a) $4,700,000, (b) $1,060,000, (c) $640,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations. 2. Hamilton's 2022 operating income using variable costing is (a) $4,700,000, (b) $1,060,000, (c) $640,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations. Requirement 1. Hamilton's 2022 operating income using absorption costing is (a) $1,060,000, (b) $640,000, (c) $4,700,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting calculations. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign for an operating loss.) Absorption costing Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct: Ending inventory Cost of goods sold Gross margin Variable operating costs Fixed operating costs Operating income
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CMA
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Transcribed Image Text:Hamilton Inc. planned and actually manufactured 250,000 units of its single product in 2022, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable
operating (non-manufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (non-manufacturing) costs totalled $370,000.
Hamilton sold 110,000 units of product at $45 per unit.
Required
1. Hamilton's 2022 operating income using absorption costing is (a) $4,700,000, (b) $1,060,000, (c) $640,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations.
2. Hamilton's 2022 operating income using variable costing is (a) $4,700,000, (b) $1,060,000, (c) $640,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations.
Requirement 1. Hamilton's 2022 operating income using absorption costing is (a) $1,060,000, (b) $640,000, (c) $4,700,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations.
Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting calculations. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.
Use parentheses or a minus sign for an operating loss.)
Absorption costing
Revenues
Cost of goods sold:
Beginning inventory
Variable manufacturing costs
Allocated fixed manufacturing costs
Cost of goods available for sale
Deduct:
Ending inventory
Cost of goods sold
Gross margin
Variable operating costs
Fixed operating costs
Operating income
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