The following information pertains to the JAG Corporation for the month of July 100,000 units were sold in July at a selling price per unit of $24. The standard unit manufacturing costs for the month were: VCU FCU Total Mfg cost per unit elling and administrative costs for the month were: VCU Total fixed costs $12 4 $16 $5 $400,000 unit rate for fixed manufacturing costs is a predetermined rate based on a capacity level of 150,000 units month. Production for July was 45.000 units less than sales. Ending inventory on June 30 consisted of 00 units. Actual fixed manufacturing costs were $600,000.

The following information pertains to the JAG Corporation for the month of July 100,000 units were sold in July at a selling price per unit of $24. The standard unit manufacturing costs for the month were: VCU FCU Total Mfg cost per unit elling and administrative costs for the month were: VCU Total fixed costs $12 4 $16 $5 $400,000 unit rate for fixed manufacturing costs is a predetermined rate based on a capacity level of 150,000 units month. Production for July was 45.000 units less than sales. Ending inventory on June 30 consisted of 00 units. Actual fixed manufacturing costs were $600,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please answer parts c, d and e
Pattison Products, Inc., began operations in October and manufactured 40,000 units during themonth with the following unit costs: Direct materials $5.00Direct labor 3.00Variable overhead 1.50Fixed overhead* 7.00Variable marketing cost 1.20*Fixed overhead per unit 5 $280,000/40,000 units produced 5 $7. Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at aprice of $24, and fixed marketing and administrative expenses were $130,500.Required:1. Calculate the cost of each unit using absorption costing.2. How many units remain in ending inventory? What is the cost of ending inventory usingabsorption costing?3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the monthof October.4. What if November production was 40,000 units, costs were stable, and sales were 41,000units? What is the cost of ending inventory? What is operating income for November?
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of the year are as follows. January February March April Estimated production in units 6,000 7,000 3,000 4,000 Required Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. Allocate overhead costs to each month using the overhead rate computed in Requirement a. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
Jean Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor. Direct materials: 2.5 meters @ P14 per meter DIrect Labor: 1.6 hours @ P8 per hour P35.00 P12.80 During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows: 50,000 meters of materials were purchased at a cost of P13.80 per meter. 40,000 meters of materials were used. 25,000 direct labor hours were used at a cost of P8.60 per hour. Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.
The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Costs Level of Activity (Units Produced) July $ 230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 Required: Determine the variable cost per unit and the fixed cost using the high-low method. What is the equation of the total mixed cost function? 3. Prepare the scatter diagram, clearly showing any outliers
Salem Company has the following costs information for June where production volume is 2,000 units: 7. The variable cost and fixed cost per unit respectively are: A) $8.75 and $1.50. B) $8.75 and $0.25. C) $4.25 and $3.00. D) $8.50 and $12.00. B) fixed cost per unit. C) total variable cost. D) total cost per unit. A) 1,000 B) 1,800 Direct materials Direct labor 8. If production changes to 2.200 units, which cost will remain the same? A) variable cost per unit. C) 3,200 D) 2,600 Straight-line depreciation Rent expenses other fixed costs 9.The production budget shows expected unit sales of 16,000. Beginning finished goods units are 1,800. Required production units are 16,800. What are the desired ending finished goods units? A) B) D) 10. The production budget shows expected unit sales are 50,000. The required production units are 52,000. What are the beginning and desired ending finished goods units, respectively? Ending Units 2,000 5,000 $8,500 $9,000 5800 Beginning Units 5,000 3.000…
The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Discussion Question July August September October November December January February March April May June Total Production Costs $230,000 250,000 260,000 220,000 340,000 330,000 200,000 210,000 240,000 380,000 360,000 290,000 Level of Activity (Units Produced) 3,500 3,750 3,800 3,400 5,800 5,500 2,900 3,300 3,600 5,900 5,600 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Based on the High-Low method, what is the total production costs if 6,500 units are produced? d) Prepare the scatter diagram and insert the trendline or line of best-lit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the y- e) Using the line of best fit delermine the company's lixed cost per month and the variable cost per unit (Use 0 &…
The following is a summary of costs related to a month of manufacturing products: Direct Materials and Direct Labor = $225,000.00 Indirect Materials, Indirect Labor, and other actual FOH costs = $30,000.00 FOH costs applied to WIP during the month = $17,000.00 From the following, select the journal entry used to record the FOH applied to production during the month. Group of answer choices a) Debit FOH 17,000 and Credit WIP 17,000 b) Debit WIP 30,000 and Credit FOH 30,000 c) Debit FOH 30,000 and Credit Accounts Payable 30,000 d) Debit WIP 17,000 and Credit FOH 17,000
The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Level of Activity (Units Produced) Month Total Production Costs July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3:300 March 240,000 3,600 Аpril 380,000 5,900 Мay 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the scatter diagram, clearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (use o 5 5,000 units.) e) In view of the department's cost behaviour pattern, which of the two methods appear more appropriate? Explain your answer.
Sheridan Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $3.30 per pound) Direct labor (1 hours at $12.00 per hour) $26.40 $12.00 During the month of April, the company manufactures 240 units and incurs the following actual costs. Direct materials purchased and used (2,300 pounds) $8,050 Direct labor (280 hours) $3,304 Compute the total, price, and quantity variances for materials and labor. Total materials variance $ Materials price variance $ Search
A department had the following information for the month: Total materials costs P45,000 Conversion cost per unit P3.00 Total manufacturing cost per unit P5.50 What are the equivalent units of production for materials?
Alpesh