1. What is the unit product cost under absorpotion costing? 2. What is the unit product cost under variable costing?
Q: Explain unit product cost under variable costing.
A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…
Q: What is the basic difference between absorption costing and variable costing?
A:
Q: When units produced are less than units sold, how does operating income differ between variable…
A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…
Q: Marginal Costing
A: Option a is wrong because marginal costing is not a technique of cost reduction. Cost reduction…
Q: What is the basic difference between absorption costing and variable costing? What are the…
A: Product costs are those kinds of costs which is related to the procedure of production directly like…
Q: Cost classifications used for predicting cost behavior include: Multiple Choice Variable cost and…
A: Variable costs are the costs that varies with the change in output but per unit variable cost…
Q: What will the unit product cost under Full costing method.
A: Formula: Unit product cost = Direct material + Direct labor + Variable manufacturing overhead +…
Q: at are special decisions areas required to marginal co
A: Marginal costing: Marginal cost is the rise or reduction in total cost which happens with a small…
Q: Explain the methods of segregating semi-variable costs into fixed and variable cost.
A: Variable cost is the cost which remains variable and fluctuate according to the level of production.…
Q: Explain the difference between the variable and absorption costing methods.
A: Under Variable Costing method, only variable costs are considered which includes only variable cost…
Q: unit product cost under variable costing
A: Variable costing only takes into account the variable costs to compute the total cost.
Q: ement applicable to service operations? If so, provide a hypothetical example of variable costing…
A: Variable costing income statement Variable costing income statement is one where all variable…
Q: What are the factors that affect the breakeven point under (a) variable costing and (b) absorption…
A: Breakeven Point:The level of production that is required to cover the fixed costs and variable costs…
Q: ow do I prepare an income statement based on variable co
A: In managerial accounting, variable costing is a cost concept. During the creation of a product…
Q: Define prime cost and conversion. Why can't prime cost prime cost be added to conversion cost to get…
A: Classification of costs is important to arrive at per head cost. It helps the management to take…
Q: When pricing a product or service, managers must consider which of the following? Only period costs…
A: Pricing a product is considered as one of the marketing strategy.
Q: Describe management’s use of absorption and variable costing.
A: Absorption costing is also known as Full absorption costing. It is one of the managerial accounting…
Q: When will NOI under the variable costing method show higher income than under the absorption costing
A: Net Operating Income: It is a calculation used to assess the profitability of the business.
Q: Identify the costs included under variable costing.
A: The costs can be distinguished as variable and fixed costs.
Q: A. What is the net income under variable costing method? B. What is the net income under absorption…
A: solution : What is the net income under variable costing method? Units 10000 Sales…
Q: determine unit cost under variable costing?
A: Costing techniques are important concept used in cost accounting branch. There are two type of…
Q: The primary difference between variable costing and absorption costing is in variable costing,…
A: Absorption Costing: “Absorption costing is a method that allocates “direct labor, direct materials,…
Q: TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher…
A: Absorption costing is the full costing method under which all the costs related to manufacturing are…
Q: re the difference between traditional product costs and activity-based product
A: Traditional product costs: The traditional method of allocating product costs is to allocate the…
Q: Assuming that direct labor is a variable cost, the primary difference between the absorption and…
A: Major difference between absorption and variable costing is fixed cost allocation across all units…
Q: Explain the difference between - Absorption and Marginal Costing
A: The Question has covered the concept of Absorption and Marginal Costing. Absorption Costing The…
Q: What effect does an increase in volume have on—a. Unit fixed costs?
A: Fixed costs are those costs of business which remain fixed in total irrespective of change in volume…
Q: How are absorption costing and variable costing the same? How are they different?
A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…
Q: In CPV analysis/ marginal costing, the term contribution is used. What does Contribution mean to…
A:
Q: 1. What is the net income under variable costing method? 2. What is the net income under absorption…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Required: When compared to variable costing income, Gem's absorption costing income is
A: Solution:- Given, Inventory for Gem's sole product totaled = 6,000 units and 5,200 units…
Q: What is absorption costing and marginal costing in the context of overhead costs? Discuss the…
A: The difference between Absorption Costing and Marginal Costing is discussed hereunder :
Q: What is the difference between absorption costing and variable costing?
A:
Q: . What was Product Z’s unit cost under absorption costing? 2. What was Product Z’s unit cost under…
A: Total variable manufacturing cost = Direct material + direct labor + variable manufacturing overhead…
Q: The product costs per unit under variable costing would be:
A: Variable costs are those costs that change with the change in the number of products manufactured by…
Q: key different in accounting for costs between absorption and variable costing
A: Absorption costing and variable costing are two methods of costing products.
Q: COMPUTE THE UNIT PRODUCT COST UNDER ABSORPTION COSTING 2. COMPUTE THE UNIT PRODUCT COST UNDER…
A:
Q: Which one of the following is correct about variable costing systems? Select one: a. Normally result…
A: Under the variable costing system, the product cost includes direct material, direct labor, direct…
Q: a. What was Product Z’s unit cost under absorption costing? b. What was Product Z’s unit cost under…
A: Absorption costing and Variable costing are two types of costing methods that are being used in the…
Q: 1. What would the manufacturing cost per unit be under absorption costing? 2. What would the…
A: C Division of White Company 1 Calculation of manufacturing cost per unit using Absorption Costing:…
Q: If the units produced and unit sales are equal, which method would you expect to show the highernet…
A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting…
Q: What are the advantages and disadvantages of Standard costing system when the labor rate us fixed?
A: Definition: Standard Costing: Standard costing is an accounting tool that is used to measure the…
Q: When units produced equal units sold, how does operating income differ between variable costing and…
A: Definition: Absorption Costing: It is a method of cost accounting where all the costs are related to…
Q: How is Variable Costing and Absorption Costing differs from each other?
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
1. What is the unit product cost under absorpotion costing?
2. What is the unit product cost under variable costing?
Step by step
Solved in 2 steps with 2 images
- Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.
- During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units one-fourth completed at a cost of 2,500 for materials, 1,400 for labor, and 1,800 for overhead. Production costs for the monthmaterials, 130,000; labor, 70,000; and factory overhead, 82,000. Units completed and transferred to stock45,000. Work in process, end of month5,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?Radford Inc. manufactures a sugar product by a continuous process, involving three production departmentsRefining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were 1,250,000, 660,000, and 975,000, respectively. Also, work in process in the Refining Department at the beginning of the period totaled 328,000, and work in process at the end of the period totaled 295,000. Journalize the entries to record (a) the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead, and (b) the transfer of production costs to the second department, Sifting.
- Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)The Converting Department of Tender Soft Tissue Company uses the weighted average method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15,800 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period. b. Determine the number of equivalent units of production for the period. Assume that direct materials are placed in process during production.