Kabeer Manufacturing Co. uses direct costing. Following information have been received from their accounting records for a single product at the end of the year: Planned Production in units 30,000 Actual Production in units 29,000 Actual sales in units 28,000 Fixed Costs (Rs.) Variable Costs (Rs.) Raw Materials 52 Direct Labor 40 FOH 28 Fixed FOH - Cost Rs. 160,000 Marketing and Administrative Costing Rs. 100,000 Rs. 9 per unit sold Note: Selling price of each single unit is Rs. 200. Required Prepare operating income statement by both, absorption and direct costing approach.

Q: Selling and administrative 10.00 If the company used the variable (direct) costing method, the…

A: Operating Income  = Sales - Variable Cost - Fixed Cost

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: PLEASE LIKE THE ANSWER YOUR RESPONSE MATTERS   Calculate total Gross profit Sales (3000*90)…

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: variable costing is a overhead which is incurred only in the period of product is produced. Given…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Absorption costing also called as historical costing is the practice of charging both fixed and…

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: Fixed overhead cost per unit = $572,000 / 44,000 units = $13

Q: Beamish Inc., which produces a single product, has provided the following data for its most recent…

A: Absorption costing is a managerial accounting technique for capturing all expenses connected with…

Q: Ing Corporation, which has only one product, has provided the following data concerning its most…

A: Unit product cost (variable costing) = Direct materials + Direct labor + Variable manufacturing…

Q: Hessell Corporation, which has only one product, has provided the following data concerning its most…

A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

Q: During the current period, 14,000 units were produced and 12,000 units were sold. Fixed…

A: Under absorption costing, the fixed costs are also treated only for the goods that are sold during…

Q: Units produced and sold   84,000   Total revenues and costs       Sales revenue $ 280,000   Direct…

A: Gross margin indicate the percentage of gross profit on the total revenue. The Gross profit is…

Q: Kray Inc., which produces a single product, has provided the following data for its most recent…

A: Variable product cost per unit includes direct material, direct labor, and variable manufacturing…

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: In variable costing income statement, the contribution margin is determined by first subtracting the…

Q: The Dorset Corporation produces and sells a single product. The following data refer to the year…

A: Introduction: Income statement: All revenues and expenses are recorded in Income statement. It tells…

Q: Exemplar company reported the following information for its first year of operations. Units produced…

A: Absorption costing is the method for accounting of costs in which all the costs associated with…

Q: The following data was prepared by the Oriole Company. Total Variable Fixed Sales price $22/unit…

A: Absorption Costing: Under this method, the product cost includes both the fixed and the variable…

Q: Gabuat Corporation, which has only one product, has provided the following data concerning its most…

A: Variable costing is a method of costing under which all variable costs are part of product costs.

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Absorption costing means that inventory is valued at total manufacturing cost including fixed…

Q: The following information were obtained from the records of HILO Company: Production in units 8, 000…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: Max Company had the following operating data for its April 2021 operations Variable costs per unit:…

A: The income statement is prepared to record the revenues and expenses of the current period and…

Q: Masley Corporation has provided the following data for its two most recent years of operation:…

A: Formula: Total product cost under variable costing = Direct materials + Direct labor +  Variable…

Q: Lynch Company manufactures and sells a single product. The following costs were incurred during the…

A: Fixed manufacturing overhead per unit = Total Fixed manufacturing overhead / Units produced =…

Q: Vijay Company reports the following information regarding its production costs. Compute its product…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A:

Q: The total contribution margin for the month under variable costing is:

A: Given information is: Hadley Corporation, which has only one product, has provided the following…

Q: Beamish Inc., which produces a single product, has provided the following data for its most recent…

A: Under absorption costing, both fixed and variable costs related to manufacturing are included as…

Q: Lagle Corporation has provided the following information: Cost per Cost per Unit Period $ 5.10…

A: The costs that are not included in product cost are said to be period cost.

Q: Beamish Inc., which produces a single product, has provided the following data for its most recent…

A: As per absorption costing the unit product cost includes direct material, direct labor, variable…

Q: The following information relates to Vice Versa Ventures for calendar year 20XX, the company’s first…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: On October 31, the end of the first month of operations, Morristown & Co. prepared the following…

A:

Q: a manufacturing company that produces a single product has provided the following data concerning…

A:

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: An income statement comparing the results is required in the instant case

Q: The Dorset Corporation produces and sells a single product. The following data refer to the year…

A: Absorption Costing is a method of costing which is used by management to absorb the cost incurred on…

Q: Bilal Manufacturing Co. uses direct costing. Following information have been received from their…

A: The income statement of a firm can be prepared using the direct costing method and absorption…

Q: Below is an exerpt from the financial data from JasNav Inc. The company has adopted a standard…

A: The question is related to Marginal Costing and Absorption costing. The details are given regarding…

Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A: No. of units sold = sales / sales price per unit = 636400/74 = 8600 units Total units produced = No.…

Q: When a production of 200,000 units of Product A during the month of June, Bucayao Corporation has…

A: Absorption Costing Method:  Under this method of costing the inventory cost, both the variables cost…

Q: Under absorption costing, a company had the following per unit costs when 5,000 units were produced.…

A: Product cost includes all the costs undertaken on the product till the time it gets ready for sale.…

Q: What is the total period cost for the month under variable costing?

A: Calculation of Variable sales and Administrative    Variable Sales and Administrative=  Unit…

Q: At the end of the first year of operations, 5,600 units remained in the finished goods inventory.…

A: Calculate the finished goods inventory under absorption costing: Direct material $29.10 Direct…

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Ace Corporation has the following information in its first year of operations in 201A: Units…

A: The company has given the following information regarding first year of its operation  Required…

Q: Beamish Incorporated, which produces a single product, has provided the following data for its most…

A: The production cost as per absorption costing includes direct expenses and manufacturing overhead.…

Q: The following information pertains to the first year of operation for Crystal Cold Coolers Inc.:…

A: Income under the absorption costing method includes fixed costs and variable costs for the amount…

Q: Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it…

A: Absorption Income Statement   Sales XXX Less Cost of goods sold XXX Gross Profit XXX Less…

Q: Caruso Inc., which produces a single product, has provided the following data for its most recent…

A: Absorption costing is a accounting method that represents all the costs like direct and indirect…

Q: Farah Corporation has provided the following production and total cost data for two levels of…

A: Since you have asked multiple subparts we will answer the first 3 subparts for you as per the…

Q: During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On…

A: Variable Costing: Managers frequently use variable costing for internal purposes for taking decision…

Q: Davison Corporation, which has only one product, has provided the following data concerning its most…

A: A period cost is a cost which cannot be capitalized into prepaid expenses, inventory, or fixed…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.