How to prepare income statement using absorption costing? omeCengageNOWv2 | Online teach Xgenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&i...d PausedFor the Month Ended January 31Sales756,000Cost of goods sold:Cost of goods manufacturedGross profitOperating incomeb. Prepare an income statement using variable costing.Townsend Co.Variable Costing Income StatementFor the Month Ended January 31Variable cost of goods sold:$PreviousNext1:52 PM12/7/2020acer...%24%24%24%24%24%24レ My HomeCengageNOwv2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&i...d PausedOn January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. Thefollowing data summarized the results for January:UnitsProduction50,000Sales ($18 per unit)(42,000)Inventory, January 318,000Manufacturing costs:Variable$575,000Fixed80,000Total$655,000Selling and administrative expenses:Variable$35,00010,500Fixed$45,500Totala. Prepare an income statement using absorption costing.Townsend Co.Absorntion Costing Income StatementPreviousNext1:52み)12/7

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Description: How to prepare income statement using absorption costing? omeCengageNOWv2 | Online teach Xgenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&i...d PausedFor the Month Ended January 31Sales756,000Cost of goods

Absorption costing considers the fixed overhead costs for production as per the units sold and not…

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Business

Accounting

How to prepare income statement using absorption costing?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. The following information is available for Department A of B Manufacturing Corporation for themonth of July:WIP, July 1, 30% complete 5,000 unitsCosts: Materials P12,000.00 DL P6,000.00 OH P8,000.00 Started in production during July 20,000 unitsCost added: Materials P36,000.00 DL P16,000.00 OH P20,200.00 WIP, July 31, 20% complete 2,000 units Materials are added at the beginning of the process and the company uses the weighted averagemethod to account for cost. Required: A. Cost of production report assuming the company utilizes FIFO method of accounting costsB. Cost of WIP ending, under WAC. Cost of WIP ending, under FIFOD. Cost of goods transferred to finished goods, under WAE. Cost of goods started and completed in July, under FIFO
Current Attempt in Progress The Assembly Department of Wildhorse Company has the following production and cost data at the end of May, 2022, its first month of operations. Production: Manufacturing Costs: Prepare a production cost report for the month of May using weighted-average process costing. (Round unit costs to 2 decimal places, e.g. 52.72.) Quantities Units to be accounted for Work in Process Inventory, May 1 Started into production 30,000 units started into production; 25,000 units completed and transferred out and 5,000 units 100% completed as to materials and 40% complete as to conversion costs. Materials added at beginning of process, $93,000; labor, $75,000; overhead $62,700. Total units Units accounted for Completed and transferred out Work in Process Inventory, May 31 WILDHORSE COMPANY Assembly Department-Production Cost Report For the Month Ended May 31, 2022 Equivalent Units Physical Units Materials Conversion Costs
Company XYZ has raw materials at the beginning of August of OMR200,000. During August, the company purchased additional raw materials of OMR30,000. During August also, the company used OMR180,000 raw materials; OMR80,000 directly on the production process and OMR100,000 related to maintenance of administrative cars. How much balance in the raw materials by the end of August? Select one: O a. OMRS0,000 Ob. OMR80,000 Oc.None of the given answers O d. OMR150,000 e. OMR230,000
You are provided with the following information for the month of October 2020 O/B WIP unit started C/B wip Number of unit: 2730 27931 1875 Percentage com:25% 60% The material in the production process are added at the following stages: Material A: 0% Material B : 40% Material C : 80% What is the equivalent units of material B in the opening work in progress
Peter Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month: Department X Department Y Quantity units: In process, February 1 16,000 10,000 Stage of completion 4/5 40% Started in process 64,000 Received from prior department 70,000 In process, February 28 ? 12,000 Stage of completion 2/5 2/3 Costs data: In process, February 1 $21,020 $20,300 Current costs Materials 28,350 46,800 Labor 15,300 25,200 Manufacturing Overhead 9,180 14,400 In Department X, material application is described to you as follows: 10% is applied at the start of the process; 25% when the process reaches the mid-point; and the remainder, when the process reaches 85% completion. Labor and Overhead are applied evenly throughout the process. In Department Y, the application of material is…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month: Department X Department Y Quantity units: In process, February 1 16,000 10,000 Stage of completion 4/5 40% Started in process 64,000 Received from prior department 70,000 In process, February 28 ? 12,000 Stage of completion 2/5 2/3 Costs data: In process, February 1 $21,020 $20,300 Current costs Materials 28,350 46,800 Labor 15,300 25,200 Manufacturing Overhead 9,180 14,400 In Department X, material application is described to you as follows: 10% is applied at the start of the process; 25% when the process reaches the mid-point; and the remainder, when the process reaches 85% completion. Labor and Overhead are applied evenly throughout the process. In Department Y, the application of material is…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month: Department X Department Y Quantity units: In process, February 1 16,000 10,000 Stage of completion 4/5 40% Started in process 64,000 Received from prior department 70,000 In process, February 28 ? 12,000 Stage of completion 2/5 2/3 Costs data: In process, February 1 $21,020 $20,300 Current costs Materials 28,350 46,800 Labor 15,300 25,200 Manufacturing Overhead 9,180 14,400 In Department X, material application is described to you as follows: 10% is applied at the start of the process; 25% when the process reaches the mid-point; and the remainder, when the process reaches 85% completion. Labor and Overhead are applied evenly throughout the process. In Department Y, the application of material is…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month: Department X Department Y Quantity units: In process, February 1 16,000 10,000 Stage of completion 4/5 40% Started in process 64,000 Received from prior department 70,000 In process, February 28 ? 12,000 Stage of completion 2/5 2/3 Costs data: In process, February 1 $21,020 $20,300 Current costs Materials 28,350 46,800 Labor 15,300 25,200 Manufacturing Overhead 9,180 14,400 In Department X, material application is described to you as follows: 10% is applied at the start of the process; 25% when the process reaches the mid-point; and the remainder, when the process reaches 85% completion. Labor and Overhead are applied evenly throughout the process. In Department Y, the application of material is…
HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 370 per unit’s information related to the current year activities followsVariable cost per unitDirect material 40Direct labor 74Manufacturing overhead 96Annual fixed costManufacturing cost 1,200,000Selling and administrative 1,720,000Sales and productionSales in units 20,000Production 24,000Required -Cost of the December 31 finished goods inventoryNet income for the current year Dec 31If next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on• The direct labor cost of 74 per units? why?• The fixed manufacturing overhead of 1,200,000? why?• The fixed selling and administrative cost of1,7200,000? why?• Per unit cost production why?
A company makes production by using Y raw material. The movements of this Y material within the month of April are as follows: (a) April 1, Beginning balance, amount: 8.000 kg, unit price: 20 TL/kg, (b) April 5, Purchase, amount: 12.000 kg, unit price: 25 TL/kg, (c) April 10, Consumption, amount: 10.000 kg, (d) April 15, Purchase, amount: 5.000 kg, unit price: 26 TL/kg, (e) April 20, Consumption, amount: 12.000 kg, (f) April 25, Purchase, amount: 15.000 kg, unit price: 22,20 TL/kg, (g) April 30, Consumption, amount: 8.000 kg. Suppose that on April 12, the company sends back 3.000 kg of Y raw material to the supplier due to low standards and on April 18, 2.000 kg of the Y raw materials was returned (iade) from the production department due to damage. Now what would be the cost of consumption at the end of the month if the company uses FIFO?
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month: Department X Department Y Quantity units: In process, February 1 16,000 10,000 Stage of completion 4/5 40% Started in process 64,000 Received from prior department 70,000 In process, February 28 ? 12,000 Stage of completion 2/5 2/3 Costs data: In process, February 1 $21,020 $20,300 Current costs Materials 28,350 46,800 Labor 15,300 25,200 Manufacturing Overhead 9,180 14,400 In Department X, material application is described to you as follows: 10% is applied at the start of the process; 25% when the process reaches the mid-point; and the remainder, when the process reaches 85% completion. Labor and Overhead are applied evenly throughout the process. In Department Y, the application of material is…
A company makes production by using Y raw material. The movements of this Y material within the month of April are as follows: (a) April 1, Beginning balance, amount: 8.000 kg, unit price: 20 TL/kg, (b) April 5, Purchase, amount: 12.000 kg, unit price: 25 TL/kg, (c) April 10, Consumption, amount: 10.000 kg, (d) April 15, Purchase, amount: 5.000 kg, unit price: 26 TL/kg, (e) April 20, Consumption, amount: 12.000 kg, (f) April 25, Purchase, amount: 15.000 kg, unit price: 22,20 TL/kg, (g) April 30, Consumption, amount: 8.000 kg. Apply the weighted average method now. What would be the ending raw material balance at the end of April? What would be the appropriate journal entry for the TOTAL cost of consumption at the end of April if the company employs LIFO? Debit 701.000 TL Direct Material Cost, Credit 701.000 TL Raw Material Debit 215.400 TL Direct Material Cost, Credit 215.400 TL Raw Material Debit 698.000 TL Direct Material Cost, Credit 698.000 TL Raw Material Debit 707.600 TL Direct…