Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 9.22E
Throughput costing (continuation of 9-21). The variable
- 1. Prepare income statements for Nascar Motors in April and May 2017 under throughput costing.
Required
- 2. Contrast the results in requirement 1 with those in requirement 1 of Exercise 9-21.
- 3. Give one motivation for Nascar Motors to adopt throughput costing.
Exercise 9-21
9-21 Variable and absorption costing, explaining operating-income differences. Nascar Motors assembles and sells motor vehicles and uses
The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.
- 1. Prepare April and May 2017 income statements for Nascar Motors under (a) variable costing and (b) absorption costing.
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Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing
income statements relating to April and May 2020 are as follows:
(Click the icon to view the data.)
(Click the icon to view the variable costing income statements.)
(Click the icon to view the absorption costing income statements.)
The variable manufacturing costs per unit of Speedy Motors are as follows:
(Click the icon to view the variable manufacturing costs per unit.)
Read the requirements.
Requirement 1. Prepare income statements for Speedy Motors in April and May 2020 under throughput costing.
Begin by completing the top portion of the statement, then the bottom portion. (Complete all input fields. Enter a "0" for any zero amounts.)
Revenues
Direct material cost of goods sold
Beginning inventory
Direct materials
Cost of goods available for sale
Deduct ending inventory
Total direct material cost of goods sold
Manufacturing costs
April 2020
6,900,000…
Variable and absorption costing, explaining operating-income differences. Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows:
The controller at Wesson Company's manufacturing plant has provided you with the following information for the first quarter's
operations:
Direct materials
Fixed manufacturing overhead costs
Sales price
Variable manufacturing overhead
Direct labor
Fixed marketing and administrative costs
Units produced and sold during the quarter
Variable marketing and administrative costs
Required:
a. Prepare a gross margin income statement.
b. Prepare a contribution margin income statement.
Complete this question by entering your answers
Required A Required B
Prepare a contribution margin income statement.
Contribution Margin Income Statement
Chapter 9 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 9 - Differences in operating income between variable...Ch. 9 - Why is the term direct costing a misnomer?Ch. 9 - Do companies in either the service sector or the...Ch. 9 - Explain the main conceptual issue under variable...Ch. 9 - Companies that make no variable-cost/fixed-cost...Ch. 9 - The main trouble with variable costing is that it...Ch. 9 - Give an example of how, under absorption costing,...Ch. 9 - What are the factors that affect the breakeven...Ch. 9 - Critics of absorption costing have increasingly...Ch. 9 - What are two ways of reducing the negative aspects...
Ch. 9 - Prob. 9.11QCh. 9 - Describe the downward demand spiral and its...Ch. 9 - Will the financial statements of a company always...Ch. 9 - Prob. 9.14QCh. 9 - The difference between practical capacity and...Ch. 9 - In comparing the absorption and variable cost...Ch. 9 - Queen Sales, Inc. has just completed its first...Ch. 9 - King Tooling has produced and sold the following...Ch. 9 - The following information relates to Drexler Inc.s...Ch. 9 - Prob. 9.20MCQCh. 9 - Variable and absorption costing, explaining...Ch. 9 - Throughput costing (continuation of 9-21). The...Ch. 9 - Variable and absorption costing, explaining...Ch. 9 - Throughput costing (continuation of 9-23). The...Ch. 9 - Variable versus absorption costing. The Tomlinson...Ch. 9 - Absorption and variable costing. (CMA) Miami,...Ch. 9 - Absorption versus variable costing. Horace Company...Ch. 9 - Candyland uses standard costing to produce a...Ch. 9 - Capacity management, denominator-level capacity...Ch. 9 - Denominator-level problem. Thunder Bolt Inc., is a...Ch. 9 - Variable and absorption costing and breakeven...Ch. 9 - Variable costing versus absorption costing. The...Ch. 9 - Throughput Costing (continuation of 9-32) 1....Ch. 9 - Variable costing and absorption costing, the Z-Var...Ch. 9 - Comparison of variable costing and absorption...Ch. 9 - Effects of differing production levels on...Ch. 9 - Alternative denominator-level capacity concepts,...Ch. 9 - Motivational considerations in denominator-level...Ch. 9 - Denominator-level choices, changes in inventory...Ch. 9 - Variable and absorption costing and breakeven...Ch. 9 - Downward demand spiral. Market.com is about to...Ch. 9 - Absorption costing and production-volume...Ch. 9 - Operating income effects of denominator-level...Ch. 9 - Variable and absorption costing, actual costing....Ch. 9 - Prob. 9.45PCh. 9 - Cost allocation, responsibility accounting, ethics...Ch. 9 - Absorption, variable, and throughput costing....Ch. 9 - Costing methods and variances, comprehensive. Rob...
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