Selling and administrative 10.00 If the company used the variable (direct) costing method, the operating income would be P2,100,000 P4,000,000 P2,480,000 P3,040,000

Q: The data given below relate to Frempomaa Ltd. for the year ended 31/12/2000: Fixed factory overhead…

A: The income statement is prepared to record the revenue and expenses for the current period. The…

Q: produced as the allocation base. Its estimated costs, by quarter, for the coming year are given…

A: The formula used is as follows:Total manufacturing overhead cost = Fixed + Variable Manufacturing…

Q: The accounting records for Moss Manufacturing Company included the following cost information…

A: Working :-  1) Calculation of total manufacturing cost :-  Direct materials + direct labor +…

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

A: Absorption costing is one of the methods of determining the product cost, it includes direct and…

Q: For XYZ Company, the following information related to costs is available for the last quarter:…

A: Absorption costing means the system of costing where fixed manufacturing overhead is also used while…

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: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing…

A: Introduction:- Absorption costing considers all costs of manufacturing as product costs irrespective…

Q: Caren corp produces 85,600 units for the year and sold 81,750 units at P22.30 per unit. Its…

A: Cost of goods manufactured for the year: =Direct Materials + Direct Labor +Manufacturing overhead…

Q: he amount of labor hours available to Actaltz, SRL in the production of products X and Y amount to…

A: Cost-Volume-Profit analysis or the (CVP) analysis is one of the techniques that is used in cost…

Q: The Albright Company uses standard costing and has established the following standards for its…

A: The variance is the difference between the standard and actual cost data. The variance can be…

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

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: dunn company incurred the following costs while producing 400 units. Direct Material $5 per unit.…

A: Note : In absorption costing method, the unit product cost is the sum of all manufacturing cost per…

Q: The accounting records for Eisner Manufacturing Company included the following cost information…

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

Q: Easton Pump Company's planned production for the year just ended was 19,300 units. This production…

A: For accounting purposes, businesses value their work-in-progress and inventory using absorption…

Q: The absorption costing unit product cost was:

A: The product cost means all the cost incurred by the company to produce the product or services.It…

Q: Solution

A:

Q: A company identified the following partial list of activities, costs, and activity drivers expected…

A: Step 1: Step 2:First, calculate the Activity Rates Activity Rate = Expected Costs / Total Expected…

Q: I need help

A: We have:Net income based on variable costing: $780,200Fixed overhead per unit (beginning and ending…

Q: The Albright Company uses standard costing and has established the following standards for its…

A: Standard cost means the cost which the company is expecting to be incurred on the basis of estimate…

Q: Gage Company reports the following information for its first year of operations: Unit produced this…

A: Total variable overhead is  Total output during the year * variable overhead cost per unit.  Under…

Q: Easton Pump Company's planned production for the year just ended was 19,300 units. This production…

A: Variable costing is a method of costing in which product cost is calculated by adding direct…

Q: at is the direct labor spending variance?   Multiple Choice   $3,300 U   $600 U

A: Direct Labour refers to the labour directly related to the manufacturing process for producing the…

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

A: There are two types of costing system followed by the organization which are-(1) Absorption costing…

Q: Larned Company makes a storage box using metal. The company uses a standard costing system. Variable…

A: The variance is the difference between the standard and actual cost data. The variance can be…

Q: Stormrage Company uses the weighted average method in its process costing system. In the most recent…

A: "Cost to be accounted for" signifies the comprehensive expenses a company anticipates recognizing…

Q: Single rate versus departmental rates Northern Wood Products has two production depart- ments:…

A: (a) Plantwide cost driver rate: =   Total ManufacturingSupport Cost / Plantwide direct labor hour =…

Q: For XYZ Company, the following information related to costs is available for the last quarter:…

A: Under absorption costing, Product cost =direct material +direct labour +manufacturing variable…

Q: On April 30, the end of the first month of operations, Joplin Company prepared thefollowing income…

A: Managers frequently use variable costing for internal purposes for taking decision making. The cost…

Q: Dollar Company incurred the following costs while producing 610 units: direct materials, $6 per…

A: Absorption costing refers to the method of product costing in which the price of the product is…

Q: Zeta Inc. had net income of $918,000 based on variable costing. Beginning and ending inventories…

A: Net income as per absorption costing: =Net income under variable costing-(Beginning Inventory-…

Q: Smith Company employs process costing method in accounting for its products. The following data for…

A:

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: 2. The estimated unit costs for CNR Inc., when it is operating at a production and sales level of…

A: Absorption Costing - In this costing method cost associated with the manufacturing of a product is…

Q: Godiva company has two products, A and B. The company uses activity-based costing to allocate…

A: Activity rate (allocation rate) for Activity 2 = Total overhead cost for the activity 2 / Total no.…

Q: ABC company manufactures rivets in an automated factory. The company uses standard costing system to…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: A Company produced 80,900 units during its first year of operations and sold 77,100 at 21.60 per…

A: Calculation of unit cost=Cost of goods manufactured [COGS]  / Number of units produced Cost of…

Q: A company has provided the following data from its activity-based costing accounting system:…

A: Indirect factory wages not assigned to product = Total Indirect factory wages x Other activity cost…

Q: Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces and sells…

A: Total amount of fixed manufacturing overhead incurred=Fixed manufacturing overhead per unit×Units…

Q: ) What is the ending inventory (February) under variable costing? 2) What is the ending inventory…

A: The entity uses two types of costing systems, which are as follows: (1) Variable costing…

Q: Santorini Ltd. has accumulated the following data over a six-month period:   Indirect Labor Hours…

A:

Q: A manufacturer reports the following costs to produce 12,000 units in its first year of operations:…

A: The absorption costing assumes the variable and fixed manufacturing costs to be included in the…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.