Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 9.B, Problem 2E
Swain Company manufactures one product. it does not maintain any beginning or ending inventories, and its uses a standard cost system. The company’s beginning balance in 
During the period. Swain recorded the following variances:
Required:
1. When Swain closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
2. Using Exhibit 9B−5 as a guide. prepare an income statement for the year.
3. What is Swain’s ending balance in Retained Earnings?
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Grainger Company produces only one product and sells that product for $90 per unit. Cost information for the product is as follows:
Direct Material
$16 per Unit
Direct Labor
$26 per Unit
Variable Overhead
$4 per Unit
Fixed Overhead $27,200
Selling expenses are $5 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory.
A. Compute net income under
i. Absorption Costing $
ii. Variable Costing
B. Which costing method provide higher net income? By how much?
The
method provided more net income by $
Grainger Company produces only one product and sells that product for $90 per unit. Cost information for the product is as follows:
Direct Material
$16 per Unit
Direct Labor
$26 per Unit
Variable Overhead
$5 per Unit
Fixed Overhead $26,800
Selling expenses are $4 per unit and are all variable. Administrative expenses of $16,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no
beginning inventory.
A. Compute net income under
i. Absorption Costing $
ii. Variable Costing
B. Which costing method provide higher net income? By how much?
The absorption costing ✔method provided more net income by $
Use the information below to answer the following question(s).
Franscioso Company sells several products. Information of average revenue and costs is as follows:
Selling price per unit $28.50
Variable costs per unit:
Direct material $5.25
Direct manufacturing labour $1.15
Manufacturing overhead $0.25
Selling costs $1.85
Annual fixed costs $110,000
The Franscioso Company contribution margin ratio is
O A. 0.702:1.
O B. 1.425:1.
O C. 0.298:1.
O D. 1.102:1.
O E. 0.637:1.
Chapter 9 Solutions
Introduction To Managerial Accounting
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