Inventories: Beginning (units) Ending (units) Variable costing net operating income 200 170 170 180 $ 1,080,400 $ 1,032,400 The company's fixed manufacturing overhead per unit was constant at $560 for all three years.

Inventories: Beginning (units) Ending (units) Variable costing net operating income 200 170 170 180 $ 1,080,400 $ 1,032,400 The company's fixed manufacturing overhead per unit was constant at $560 for all three years.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the following data: Year 1 Year 2 200 160 $ 290,000 Inventories Beginning (units) Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Year 3 160 180 $ 269,000 180 220 $ 250,000 2. Assume in Year 4 the company's variable costing net operating income was $240,000 and its absorption costing net operating income was $300,000. a. Did inventories increase or decrease during Year 4? b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?
! Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 3 Inventories. Beginning (units) Ending (units) 210 170 190 240 Variable costing net operating income $ 290,000 $ 260,000 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. Year 2 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 170 190. $ 279,000 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing…
2. Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Inventories: Production (units) Sales (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was $18. 15,000 18,000 $460,000 15,000 12,000 $320,000 Required: Determine each year's absorption costing net operating income.
Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the . following data: Year 1 Year 3- Inventories Beginning (units) Ending (units) 200 150 190 230 Variable costing net operating income $ 290,000 $ 250,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Required; 1. Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. Year 2 150 190 $ 279,000 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net…
Required information Use the following information for the Exercise below. (Algo) [The following information applies to the questions displayed below.] Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 36 per unit $ 26 per unit $12 per unit $ 70,000 per year $3 per unit $ 28,000 per year Exercise 6-5 (Algo) Computing gross profit at different production levels LO P2 The company sells its product for $140 per unit. Compute gross profit using absorption costing assuming the company (a) produces and sells 2,800 units and (b) produces 3,500 units and sells 2,800 units. (a) 2,800 Units Produced Gross profit using absorption costing and 2,800 Units Sold Sales Cost of goods sold Gross profit (b) 3,500 Units Produced and 2,800 Units Sold
1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month January February March Utilities $ 8,700 8,360 8,950 9,360 9,625 Machine Hours 800 720 S10 April May 920 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. B) $5,100. 9 $4,760. D) $3,764. E) None of the answers is correct.
Required information [The following information applies to the questions displayed below] Barnes Company reports the following for its product for its first year of operations Direct materials Direct labor s 35 per unit Variable overhead 5 25 per unit $10 per unit Fixed overhead Variable selling and administrative expenses $ 48,000 per year $3 per unit Fixed selling and administrative expenses $ 20,000 per year The company sells its product for $150 per unit. Compute gross profit using absorption costing assuming the company (al produces and sells 2,000 units and (b) produces 2,400 units and sells 2,000 units. Answer is not complete. (a) 2,000 Units Produced and 2.000 Units Sold (0)2,400 Unit Produced and 2,000 Units Sold Gross profit using absorption costing Sales Cost of goods sold Gross profit 00
! Required information [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Income Statement (Absorption Costing) 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Sales Cost of goods sold Gross profit Income Income $ $ $ $ 5,040,000 3,240,000 1,800,000 1,404,000 396,000 $ 60 per unit $ 22 per unit $ 8 per unit 528,000 per year $ 11 per unit 105,000 per year
Required Information [The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 20,000 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute gross profit under absorption costing. RAMORT COMPANY Gross Profit (Absorption Costing) Sales Cost of goods sold Gross profit 1,200,000 $10 per unit $ 12 per unit $3 per unit $ 40,000 per year $ 2 per unit $ 65,200 per year $ 60 per unit
Required information [The following information applies to the questions displayed below.] Trio Company reports the following information for its first year of operations. $ 13 per unit $17 per unit $7 per unit $ 220,950 per year Direct materials. Direct labor Variable overhead Fixed overhead Units produced Units sold Ending finished goods inventory 1. Compute the product cost per unit using absorption costing. 2. Determine the cost of ending finished goods inventory using absorption costing. 3. Determine the cost of goods sold using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 24,550 units 18,000 units 6,550 units Determine the cost of ending finished goods inventory using absorption costing. Absorption costing Cost per unit of finished goods using: Product cost per unit Number of units in finished goods Cost of ending finished goods inventory
Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to sharesholders, creditors, and the government. The company has provided the following data below 1. Calculate each year's absorption costing net operating income 2. Assume in Year 4 that the companys variable costing net operating income was $250,000 and its absorption costing net operating income was $280,000 2a. Did inventories increase or decrease during Year 4 2b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4 Inventories Year 1 Year 2 Year 3 150 Beginning (units) Ending (units) 210 150 180 Variable costing net operating income $ 300,000 $ 279,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 180 220 $ 260,000
Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($282,960 2,400 units) Total variable selling expenses ($14 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a contribution margin income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Req 2A Reg 2B 2,400 1,500 $ 630.00 65.00 95.00 45.00 117.90 Req 3 Gross Margin Less: Non-Manufacturing Expenses 21,000.00 74,000.00 Complete a full absorption costing income statement for Presidio.…