X Corp produces single product. Income under variable costing and absorption costing are 36,400 and 25,600, respectively. Product cost per unit under Variable costing and absorption costing are 18 and 20 per unit, respectively. Ending inventory is 2,600 units, what is the beginning inventory in units? A. 5,400 B. 2,800 C. 8,000 D. 13,400

X Corp produces single product. Income under variable costing and absorption costing are 36,400 and 25,600, respectively. Product cost per unit under Variable costing and absorption costing are 18 and 20 per unit, respectively. Ending inventory is 2,600 units, what is the beginning inventory in units? A. 5,400 B. 2,800 C. 8,000 D. 13,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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porated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold A. Increase by $100,932 B. Decrease by $100,932 $50 $160,000 $187,000 $122,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,200 units at a sale price of $44 per product? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) C. Increase by $356,668 D. Increase by $228,800 $72,000 $65,000 $12,000 22,000
3. The carrying value of ending inventory under variable costing would be: _________. Present as is if higher or present it in parenthesis if it is less ex: (200) 4. Under absorption costing, the cost of goods sold would be:
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A company has the following information taken from its Normal Costing records for the current year: Under Variable Costing P 85,000 P 16,250 P 10,000 Total Variable Costs Ending Inventory Net Income Under Absorption Costing Total Cost of Sale Ending Inventory Total Operating Expenses P 84,000 P 21,250 P 30,000 Other information: Total Units Produced 20,000 Total Units Sold 20,000 Beginning Inventory 5,000 There are no changes in the company's cost structure. Assume that the units produced were also the budgeted units used in the determination of the predetermined fixed overhead rate. Required: 1. How much is the company's total sales? 2. How much is the cost of the company's beginning inventory under absorption costing? 3. How much is the net income under absorption costing?
[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 es Selling and administrative costs this year Variable $1,300,000 4,400,000 Fixed 1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement 3 4 of 5 H M 2 *********** → Check my w
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What is the value of ending inventory using the variable costing method?
The amount of ending inventory if absorption costing method was used
D’Souza Company sold 12,000 units of its product for $76.00 per unit. Cost of goods sold is $54.60 per unit. Each unit had $49.20 in variable cost of goods sold and variable selling and administrative expenses are $9.60 per unit. Compute gross profit under absorption costing.
The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Fixed Unit manufacturing costs of the period $7.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.920 decrease Ob. 161.928 increase O$54.187 increase d. 554.107 decrease Variable $10.00
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Subject: acounting