JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit P636,400 Variable costs per unit: Fixed costs: Direct materials P12 Factory overhead PI Direct labor 32 Selling & administrative 8,6 Factory overhead Selling & administrative 6 There are 200 units of inventory remaining at the end of April. Jnit product cost under variable and absorption costing approach, resp st be: Present it as V-50 and A-53 r answer Contribution margin for the month under the variable costing approach is:

JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit P636,400 Variable costs per unit: Fixed costs: Direct materials P12 Factory overhead PI Direct labor 32 Selling & administrative 8,6 Factory overhead Selling & administrative 6 There are 200 units of inventory remaining at the end of April. Jnit product cost under variable and absorption costing approach, resp st be: Present it as V-50 and A-53 r answer Contribution margin for the month under the variable costing approach is:

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 3CMA

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Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
The following operating data are available from the records of Jonathan Company for the month of January 20CY. Sales (P70 per unit) Direct Materials Direct Labor Manufacturing Overhead Fixed P210,000 59,200 48,00 36,080 Variable Marketing and General Expenses Fixed 24,000 11,000 5% of sales Variable Production in units Beginning inventory 3280 units none 37. The ending finished goods inventory under absorption costing method would be: a. 14,280 b. 16,968 c. 12,096 d. 16,072 38. The profit for the month under the variable costing method would be: а. 32,420 b. 25,500 с. 23,320 d. 22,420
4)The Dorset Corporation produces and sells a single product. The following datarefer to the year just completed:Beginning inventory 0Units produced 32,200Units sold 26,600Selling price per unit $ 422Selling and administrative expenses:Variable per unit $ 19Fixed per year $ 452,200Manufacturing costs:Direct materials cost per unit $ 259Direct labor cost per unit $ 56Variable manufacturing overhead cost per unit $ 34Fixed manufacturing overhead per year $ 450,800Assume that direct labor is a variable cost.Required:a. Compute the unit product cost under both the absorption costing and variablecosting approaches.Cost per unitAbsorption costingVariable costingb. Prepare an income statement for the year using absorption costing.Absorption Costing Income Statement1,569,400$611,800c. Prepare an income statement for the year using variable costing.Variable Costing Income Statement4) 5Variable expenses:9,788,8001,436,400Fixed expenses:903,000$533,400d. Reconcile the absorption costing and…
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:Beginning inventory0Units produced9,000Units sold7,000Selling price per unit$47Selling and administrative expenses:Variable per unit$4Fixed per year$58,000Manufacturing costs:Direct materials cost per unit$10Direct labor cost per unit$6Variable manufacturing overhead cost per unit$5Fixed manufacturing overhead per year$90,000Assume that direct labor is a variable cost.Required: d. variable costing net operating income figures
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory0Units produced9,000Units sold7,000Selling price per unit$47Selling and administrative expenses:Variable per unit$4Fixed per year$58,000Manufacturing costs:Direct materials cost per unit$10Direct labor cost per unit$6Variable manufacturing overhead cost per unit$5Fixed manufacturing overhead per year$90,000Assume that direct labor is a variable cost.Required:a. Prepare an income statement for the year using absorption costingb. Prepare an income statement for the year using variable costingc. Reconcile the absorption costing d. variable costing net operating income figures
Ma4 . Tord Company processes 18.100 gallons of direct materials to produce two products, Product X and Product Y Product X sells for 30 per galon and Product Y, the main product sells for $200 per gallon. The following information is for December The manufacturing costs totaled $29,000 If the byproduct inventory is recorded at NRV less profit margin of 40%, the balance sheet will report______of byproduct inventory OA. $1.575 Ob. $0 Oc. $4,000 OD. $945
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The Dorset Corporation produces and sells a single product. The following data refer to the year justcompleted:Beginning inventory 0Units produced 10,000Units sold 8,000Selling price per unit $ 50Selling and administrative expenses:Variable per unit $ 5Fixed per year $ 60,000Manufacturing costs:Direct materials cost per unit $ 10Direct labor cost per unit $ 6Variable manufacturing overhead cost per unit $ 5Fixed manufacturing overhead per year $ 80,000Assume that direct labor is a variable cost.Required:a. Prepare an income statement for the year using absorption costing and variable costingb. Reconcile the absorption costing and variable costing net operating income figures
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0Units produced 9,000Units sold 7,000Selling price per unit $ 47Selling and administrative expenses: Variable per unit $ 4Fixed per year $ 58,000Manufacturing costs: Direct materials cost per unit $ 10Direct labor cost per unit $ 6Variable manufacturing overhead cost per unit $ 5Fixed manufacturing overhead per year Assume that direct labor is a variable cost. $ 90,000Required: a. Prepare an income statement for the year using absorption costing b. Prepare an income statement for the year using variable costing c. Reconcile the absorption costing and variable costing net operating income figures
The following information was extracted from the accounting records of Winslow Limited for the month ended31 March 2022:Inventory on 01 March 2022 NilProduction 60 000 unitsSales 48 000 unitsSelling price per unit R180Direct materials cost R40Direct labour cost R30Variable manufacturing overheads R10Fixed manufacturing overheads R600 000 per monthAdvertising and salaries R80 000 per monthSales personnel’s commission 5% of salesAdministration costs including salaries R120 000 per monthOther administration costs R12 per unit sold Use the information provided below to prepare the Income Statement of Winslow Limited for themonth ended 31 March 2022 using each of the following methods: Variable costing and Absorption costing