The VARCOST2 worksheet is capable of calculating variable and absorption income when unit sales are equal to or less than production. An equally common situation (that this worksheet cannot handle) is when beginning inventory is present and sales volume exceeds production volume. Revise the worksheet Data Section to include:Beginning inventory in units 15,000Beginning inventory cost (absorption) $266,875Beginning inventory cost (variable) $210,000,Also, change actual production to 70,000. Revise the Answer Section to accommodate this new data. Assume that Anderjak uses the weighted-average costing method for inventory. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Check figure: Absorption income, $670,000. VARCOSTVariable CostingData SectionActual production in unitsSales in unitsSales price per unitVariable manufacturing costs per unitVariable selling costs per unitFixed manufacturing costsFixed selling expenses100,00080,000$30$14$2$315,000$100,000Answer SectionIncome statement: Absorption costingSales$2,400,000Cost of goods sold:Variable manufacturing costsFixed manufacturing costsTotal goods available for saleLess ending inventoryCost of goods sold$1,400,000315,000$1,715,000343,0001,372,000$1,028,000Gross profitSelling expenses:Fixed selling expensesVariable selling expensesTotal selling expenses$100,000160,000260,000$768,000Operating incomeIncome statement: Variable costingSales$2,400,000Cost of goods sold:Variable manufacturing costsLess ending inventoryVariable cost of goods sold$1,400,000280,0001,120,000$1,280,000Manufacturing marginVariable selling expensesContribution marginFixed costs:Fixed manufacturing costsFixed selling expenses160,000$1,120,000$315,000100,000Total fixed costs415,000Operating income$705,000

The question is based on the concept of Cost Accounting.

The VARCOST2 worksheet is capable of calculating variable and absorption income when unit sales are equal to or less than production. An equally common situation (that this worksheet cannot handle) is when beginning inventory is present and sales volume exceeds production volume. Revise the worksheet Data Section to include: Beginning inventory in units 15,000 Beginning inventory cost (absorption) $266,875 Beginning inventory cost (variable) $210,000, Also, change actual production to 70,000. Revise the Answer Section to accommodate this new data. Assume that Anderjak uses the weighted-average costing method for inventory. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Check figure: Absorption income, $670,000.

The VARCOST2 worksheet is capable of calculating variable and absorption income when unit sales are equal to or less than production. An equally common situation (that this worksheet cannot handle) is when beginning inventory is present and sales volume exceeds production volume. Revise the worksheet Data Section to include: Beginning inventory in units 15,000 Beginning inventory cost (absorption) $266,875 Beginning inventory cost (variable) $210,000, Also, change actual production to 70,000. Revise the Answer Section to accommodate this new data. Assume that Anderjak uses the weighted-average costing method for inventory. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Check figure: Absorption income, $670,000.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter27: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 18E: Cost of quality and value-added/non-value-added reports for a service company A. Using the...

See similar textbooks

Similar questions

Sales price OMR 1000; Direct materials OMR250; Directe labor OMR 180; Variable selling cost OMR 100; Fixed selling cost OMR 200; Variable manufacturing cost OMR 150; Fixed manufacturing cost OMR 350 then we get TOTAL MANUFACTURING COST OF GOODS SOLD. O a. OMR 930 O b. OMR 520 O C. Some other answer O d. OMR 320
Selling Price/Unit Units Produced Units Sold Fixed Manufacturing Direct Materials/Unit Direct Labor/Unit Variable OH/Unit Var S,G,A/Unit Fixed S,G, & A $100 200 150 $1500 $3 $4 $10 $30 $2000 Year 1 Absorption Costing Variable (Direct) Costing Account Calculation Total Amount Account Calculation Total amount Sales Revenue Sales Revenue COGS Variable Expenses Gross Margin Contribution Margin S, G, & A Fixed Expenses Operating Income Operating Income 1. The unit product cost under Absorption Costing is: 2. The unit product cost under Variable Costing is: 3. The Cost of Goods Sold under Absorption Cost is: 4. Total Variable Expenses are: 5. Gross Margin 6. Total Contribution Margin is : 7. Operating Income under Absorption Costing is: 8. Operating Income…
Data table Units of D4H produced and sold 1. 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity (units of D4H) 6. Total conversion costs 7. 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12. Total design costs 13. Design cost per employee Conversion cost per unit of capacity Alt+Q Print Done $ $ 210 41,000 $ 310,000 7.25 $ 250 2,125,000 $ 8,500 $ $ $ 2,150,000 8,600 95 customers 90 customers 900,000 10,000 12 1,045,000 $ 11,000 $ 12 1,212,000 $ 101,000 $ $ $ ZUZT $ $ ZUZZ 235 43,000 325,000 7.75 250 1,218,000 101,500 (similar to) Data table HW Score: 3.03%, 0.12 of 4 points Daint 0 10 of 1 Revenue effect of growth Cost effect of growth The company has chosen a product differentiation strategy. The growth, price- recovery, and productivity components of the change in operating income from 2021 to 2022 are as…
Required information [The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ Units produced this year Units sold this year 300 per unit 115,000 units 118,250 units 3,250 units Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $135) Fixed (3,250 units x $80) $ 438,750 260,000 Total $ 698,750 Manufacturing costs this year Direct materials $ Direct labor $ Overhead costs this year Variable overhead $3,000,000 Fixed overhead $7,400,000 Selling and administrative costs this year Variable $1,300,000 Fixed 4,400,000 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY S
2. Happy Wheels has this information for its manufacturing: Direct Materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Units produced Units sold Its income statement under absorption costing is: Sales Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inventory - Cost of Goods Sold Gross Profit - Sales and Administration Expenses Variable Fixed Total Sales and Administration Expenses Net Operating Income $15 $15 $ 3 $25 27,000 19,000 $1,900,500 0 1,566,000 1,566,000 464,000 1,102,000 798,500 133,000 300,000 433,000 $365,500 a. Prepare an income statement according to the variable costing concept. b. If Happy Wheels reduced its inventories during the period, what impact would that have on the income from operations determined under absorption costing?
Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (40,000 x $90) $3,600,000 Manufacturing costs (40,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Fixed selling and administrative expenses Variable selling and administrative expenses The company is evaluating a proposal to manufacture 50,000 units instead of 40,000 units, thus creating an ending inventory of 10,000 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 40,000 and 50,000 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank. Sales Cost of goods sold: Cost of goods manufactured…
Variable costs: Manufacturing Sales commission Total variable costs Fixed costs (allocated): Manufacturing Selling and administrative Total fixed costs Total costs Variable manufacturing cost per unit E20.24 Absorption cost per unit Total variable cost per unit = = $400 $192000-480 = ($192000-$120000)- 480 = ($192000-124000)-480 =$450 = 5650 $192 000 $ 24 000 $120 000 $48 000 $216 000 $168 000 $384 000 Determining markup percentage; target ROI: manufacturer LO 20.3 Refer to the cost and production data for the Wave Darter in Exhibit 20.4. The target profit is $110 000. Required Use the general formula to calculate the required markup percentages for each of the following cost- plus formulas: 1. variable manufacturing cost 2. absorption cost.
cation Problems Check my work mode: This shows what is correct or incorrect for the work you hav Required information LEHIGHTON CHALK COMPANY Income Statement Sales revenue Cost of goods sold: Beginning finished-goods inventory Cost of goods manufactured Cost of goods available for sale Ending finished-goods inventory Cost of goods sold Variable selling and administrative costs Total variable costs: Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income NOV > ››› ››› $ ✓ $ ✓$ ✓$ $ ✓$ $ $ Year 1 65,000 Required 1 0 2,500 65,000 $ 0 $ 2,500 0 $ < Prev Saved $ $ tv Year 2 65,000 0 $ 65,000 $ 65,000 2,500 0✓ 0 $ 65,000 0 Pequired 3 1 of 1 MacBook Pro Next alı
I se the following information to answer questions 1-6. Selling price per unit Luriable manufacturing cost per unit Fixed manufacturing cost per unit V'ariable selling cost per unit Fixed selling cost per unit Expected production and sales P100 20 30 25 10 1,000 units
Marginal Costing and Absorption Costing Question 2 The following information is being provided by ABC Company: Direct material cost per unit OMR 20 Direct labour cost per unit OMR 8 Variable manufacturing overhead per unit OMR 2 Total fixed manufacturing overhead per year OMR 150,000 Variable selling and administration expenses OMR 2.5 per unit sold Fixed selling and administration expenses OMR 75,000 Number of units produced per year 25,000 Units Number of units sold per year 21,000 Units Opening stock of finished goods Selling price OMR 50 You are required to: A. Calculate the profit under marginal costing and absorption costing
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $26 per unit, and variable manufacturing costs are $78 per unit. Production was 94,000 units, while sales were 89,300 units. a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. b. Determine the difference in variable costing and absorption costing income from operations.$fill in the blank 2
What type of cost exhibits the behavior shown below? Manufacturing Volume (Units) Cost Per Unit 50,000 $1.95 70,000 1.95 Select one: a. Discretionary fixed cost b. Step-fixed cost. c. Semivariable cost.d. Variable cost. e. Fixed cost