On January 1 of the current year, Townsend Co. commenced operations. It operatedits plant at 100% of capacity during January. The following data summarized theresults for January:وا من ومی و ی م م م م م م یUnits50,000ProductionSales ($18 per unit)Inventory, January 3142.0008,000Manufacturing costs:Variable$575,000Fixed80,000Total$655,000Selling and administrative expenses:$ 35,00010,500$ 45,500VariableFixedTotal(a) Prepare an income statement using absorption costing.ان می و ن و ن ی و و و ی و ه م(b) Prepare an income statement using variable costing.و م م م م م م م م مه مه م(C) Explain the reason for difference between two incomesا ی و ه و و ه و و و و و و و و ه مه م

The absorption costing System and Variable costing system are two methods used to value the…

On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units 50,000 Production Sales ($18 per unit) Inventory, January 31 42,000 8,000 Manufacturing costs: Variable $575,000 80,000 $655,000 Fixed Total Selling and administrative expenses: $ 35,000 10,500 $ 45,500 Variable Fixed Total (a) Prepare an income statement using absorption costing. (b) Prepare an income statement using variable costing. (C) Explain the reason for difference between two incomes

On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units 50,000 Production Sales ($18 per unit) Inventory, January 31 42,000 8,000 Manufacturing costs: Variable $575,000 80,000 $655,000 Fixed Total Selling and administrative expenses: $ 35,000 10,500 $ 45,500 Variable Fixed Total (a) Prepare an income statement using absorption costing. (b) Prepare an income statement using variable costing. (C) Explain the reason for difference between two incomes

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 6BE: Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of...

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On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Production Sales ($18 per unit) Inventory, January 31 Manufacturing costs: Variable Fixed Total Selling and administrative expenses: Variable Fixed Total Cost of goods sold: Units 50,000 (42,000) 8,000 Operating income $575,000 80,000 $655,000 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 Line Item Description Amount Amount $35,000 10,500 $45,500
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Line Item Description Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Amount Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Amount Variable $35,000 Fixed 10,500 Total $45,500 Question Content Area a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 Line Item Description Amount Amount $- Select - Cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - Operating income $Operating income Question Content Area b. Prepare an income statement using variable costing. Townsend Co. Variable Costing Income Statement For the Month Ended January 31 Line Item Description Amount Amount $-…
The following data refer to Quest Ltd for the current year:Sales Revenues $575 000Work in process inventory, 31December20 000Work in process inventory, 1 January 25 000Product promotion cost 30 000Rental of office space for salespersonnel20 000Cost of idle time: sales employees 20 000Income tax expense 60 000Purchase of raw materials 95 000Raw materials inventory, 31 December 17 500Raw material inventory. 1 January 25 000Direct labour 105 000Electricity: plant 25 000Depreciation plant and equipment 35 000Finished goods inventory, 31December30 000Finished goods inventory, 1 January 15 000Indirect material 5 000Indirect labour 7 500Production supervisor’s salary 40 000Required:a) Prepare the schedule of cost of goods manufactured for Quest Ltd.b) Prepare the schedule of cost of goods sold for Quest Ltd.c) Prepare an income statement for Quest Ltd for the current year.
ABC Manufacturing has the following account balances at the beginning of the current year: Raw Materials Inventory P57,500; WIP Inventory P172,500; and Finished Goods Inventory P138,000. Additional information during January: - Purchased of Raw Materials: On account P230,000.00; Cash P92,000.00; and - Issuance of Raw Materials to the production department, 10% are indirect materials P207,000.00. Which of the following is the amount of the direct materials used? Select the correct response: P174,800.00 P184,000.00 P186,300.00 P201,250.00
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 Fixed 10,500 Total $45,500 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 $fill in the blank 9631bb05c073fa8_2 Cost of goods sold: $fill in the blank 9631bb05c073fa8_4 fill in the blank 9631bb05c073fa8_6 fill in the blank 9631bb05c073fa8_8 $fill in the blank 9631bb05c073fa8_10 fill in the blank 9631bb05c073fa8_12 Operating income $fill in the blank…
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 Fixed 10,500 Total $45,500 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 Next
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarIzed the results for January: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 Fixed 10,500 Total $45,500 a. Prepare an income statement using absorption costing.
Dan Wood Ltd commenced business on 1st January 2020 making one product only, which sells for K160 per item. The production and sales data for each of the first three months of 2020 was as follows:JanuaryFebruaryMarch Sales in units2,4002,5003,800 Production in units2,7002,4004,000 Actual information for each month was as follows:Direct materials 3 kilograms at K5 per kilogramDirect labour 4 hours at K10 per hourVariable production overheads 150% of direct labourSales commission 10% of sales valueFixed production overheads K10,000Fixed selling overheads K35,000 There was no opening inventory at the start of January. Fixed production overheads are budgeted at K120,000 per annum and are absorbed into products based on a budgeted normal output of 30,000 units per annum Required:Prepare a profit statement for each of the three months using absorption costing principlesDan Wood Ltd commenced business on 1st January 2020 making one product only, which sells for K160 per item. The production…
Following details have been provided by bar corporation as given below: Purchase of direct material on account: June $68000 July $77000 August $73000 Company pays off 20% of the due balance of accounts payable in the month of purchase and remaining portion in the next month. In the month of July, direct labor cost is $33,800. In the month of August, direct labor cost is $35,400. 90% of the direct labor cost is the month to which belongs and remaining is paid next month. Overhead relayed to August is $77,200 and it includes depreciation of $6,350. Company has loan of $23,000 which has due period of 4 month. It taken on May 1. Interest will be due at 9% per annum. Repayment of loan along with interest is done on August 31. Cash payment in August is?
At the beginning of the month raw materials inventory was £30,000, during the month £257,000 of raw materials were purchased. A count at the end of the month revealed that £25,000 of raw material was still present. What is the cost of direct material used? A. £400,000 B. £282,000 C. £262,000 D. £272,000
Following are the details of Exceed Battery Company for the period ended June 30, 2020. Company established standard on its normal capacity of 120,000 units/ hours in a year: Direct Material 600,000 kgs at Rs. 9 per kg Direct Labor 4 hours per unit at Rs. 6 per hour Factory overhead: Fixed cost Rs. 240,000 per year or Rs. 20,000 per month. Variable Cost Rs. 4.50 per hour. During the one month of operation, company produced 11,000 units. Direct material used: 60,500 kgs at Rs. 9.10 per kg Direct labor used: 41,250 hours at Rs. 268,125 Actual Variable Factory overhead Rs. 55,000 Required: Calculate the following variances: Material quantity variance. Material price…
The following data were taken from the records of Jun Company for the year ended Dec. 31, 2021: Sales P5,590,000Sales returns 55,000Inventories, January 1:Raw materials 131,000Work in process 238,350Finished goods 442,000Inventories, December 31:Raw materials 145,500Work in process 175,720Finished goods 412,000Direct labor 1,050,300Purchases 2,051,500Purchase returns 17,150Purchase discounts 12,550Freight in…