A business operated at 100% capacity during its first month of operations, with the following results:   Sales (90 units)   $90,000 Production costs (100 units)         Direct materials $40,000       Direct labor   20,000       Variable factory overhead     2,000       Fixed factory overhead     7,000              Total manufacturing costs     69,000 Operating expenses:         Variable            Variable operating expenses $ 8,000          Fixed operating expenses     1,000              Total operating expenses       9,000   Use this information to complete a variable costing income statement.

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Computation of Operating Income Sales  (96)                         = $480,000 Less- Cost of goods…

Q: The amount of gross profit that would be reported on the absorption costing income statement is…

A:

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Calculate the sales price and cost per unit.

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: variable costing is a overhead which is incurred only in the period of product is produced. Given…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Marshall Inc.  Estimated budget for 20000 units are as follows : Sales = $1420000 Selling price =…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Explanation - Gross Profit will be calculated as Sales - Cost of Goods Sold. Cost of Goods Sold…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Period cost under absorption costing  = Fixed selling and administrative expense + Variable selling…

Q: The accounting records for Portland Products report the following manufacturing costs for the past…

A: In This Numerical Has Covered the concept of Cost Analysis.

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Calculate the per unit cost as follows: Formulas:

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Variable costing: Variable costing is a concept of managerial costing. Income under variable costing…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Contribution Margin: To get the contribution margin, take the selling price per unit and subtract…

Q: Lane Company produced 50,000 units during its first year of operations and sold 47,300 at $12 per…

A: Under Variable Costing the costs directly associated with the product i.e. direct materials, direct…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A:

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Absorption Costing - Under this method of the income statement, all the product costs whether fixed…

Q: business operated at 100% of capacity during its first month, with the following results:  Sales…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: Gabuat Corporation, which has only one product, has provided the following data concerning its most…

A: Variable costing is a method of costing under which all variable costs are part of product costs.

Q: Under variable costing, the value of the inventory is:

A: Option D is correct.

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Calculate product cost per unit:

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Formula: Contribution margin = sales - variable cost Deduction of variable cost from sales value…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Absorption Costing includes all the cost including Variable and Fixed cost, we should consider all…

Q: A company produced 10,000 units and reported the following costs: direct materials, $10 per unit;…

A: variable cost is the concept that is used in generally managerial and cost accounting where the…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: The period cost is that cost that can not be capitalized like fixed manufacturing overhead, selling…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Total production cost under variable costing = Direct materials + Direct labor + Variable factory…

Q: Pavelko Corporation has provided the following data for its two most recent years of operation:…

A: Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…

Q: A business operated at 100% of capacity during its first month, with the following results: $655,400…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: Total variable cost = Direct materials + Direct labor + Variable manufacturing overhead  + Variable…

Q: Pavelko Corporation has provided the following data for its two most recent years of operation:…

A: Answer and calculation are given below

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: at 100% of capacity during the first month. The following data summarize the results for July: Sales…

A: The income statement is prepared to find the net income or loss incurred during the period.

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Operating Income:- Operating income is refers to the income, which shows the amount of profit that a…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: In variable costing statement ,we will value the inventory at variable factory cost . Fixed factory…

Q: The following information is available for Preston Company for its first year of operations: Sales…

A: Absorption costing is a accounting method for recording all costs associated with manufacturing…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Selling price= $117 Units in beginning inventory 0 Units produced 2,900 Units sold 2,500 Units in…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Variable costing approach means where goods are valued at variable manufacturing cost only and fixed…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Formula: Gross profit = Sales - cost of goods sold. sales per unit = Total sales / number of units…

Q: The accounting records for Portland Products report the following manufacturing costs for the past…

A: Particulars Units(A) Cost(B) Per unit Cost(C=B/A) Increase in Per unit Cost Total Increase(D=C+%)…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A:

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…

Q: [The following information applies to the questions displayed below.]   Cool Sky reports the…

A: Absorption costing is a costing technique in which management of company consider all variable and…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: The contribution margin is calculated by subtracting all variable expenses from revenue in a…

Q: What is the total period cost for the month under variable costing?

A: Calculation of Variable sales and Administrative    Variable Sales and Administrative=  Unit…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Formula: Contribution margin = sales - variable cost.

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Contribution margin = Sales - Variable cost   Production cost for 96 units = (Direct materials +…

Q: A business operated at 100% capacity during its first month of operations, with the following…

A: The major component of a variable costing income statement is contribution margin. It is calculated…

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: The corporation expecting to absorb the fixed cost related to the units sold as well to determine…

Q: Ace Corporation has the following information in its first year of operations in 201A: Units…

A: The company has given the following information regarding first year of its operation  Required…

Q: During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On…

A: Variable Costing: Managers frequently use variable costing for internal purposes for taking decision…

Q: Zeklen Company had the following data for the month:   ​ Variable costs per unit: ​ Direct…

A: Absorption Costing Absorption costing is compulsory under Generally Accepted Accounting Principles…

Q: The accounting records for Portland Products report the following manufacturing costs for the past…

A:

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.