A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,100 units):        Direct materials $174,200      Direct labor 231,300      Variable factory overhead 256,700      Fixed factory overhead 92,600 $754,800 Operating expenses:        Variable operating expenses $124,900      Fixed operating expenses 43,200 168,100 If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is a.$49,418 b.$58,739 c.$68,873 d.$56,340

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

A: Under absorption costing, manufacturing costs are considered product costs and included in…

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

A: Introduction:   To keep track of all costs associated with creating a certain product, "absorption…

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

A: Formulas:

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 and incurred the following costs:…

A:

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

A: Working Notes: 1. Sales = selling price * units sold =  ($105 *8600 units) = $903,000

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 25,000 units and sold…

A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

Q: On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following…

A: The income statement is prepared using various methods as variable costing and absorption costing…

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

A: Absorption Costing: The absorption costing is the method of costing in which the enterprise…

Q: f 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported…

A: Solution : Amount of inventory shown in balance sheet =(Computation  of variable cost per unit *…

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

A: Product cost includes all the variable manufacturing expenses such as direct expenses, direct labor,…

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

A: PARTICULARS  AMOUNT ($) DIRECT MATERIAL $175,500 DIRECT LABOR $232,800 VARIABLE FACTORY…

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

A: As per the absorption costing system, product cost includes both fixed and variable expenses.

Q: What is the net operating income for the month under absorption costing?

A: Under Absorption costing, product cost is the total of Direct Material + Direct Labour +…

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

A: Introduction: Total cost is an accounting measure. It includes not only the actual monetary spend…

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

A: Variable Costing: In management accounting, the notion of variable costs is known as variable…

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

A: In variable income statement all the variable manufacturing expenses are considered as the product…

Q: A manufacturer reports the following costs to produce 25,000 units in its first year of operations:…

A: We know that under variable costing inventory value includes all variable costs. That is, Value of…

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: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A: Solution.. Units sold  = Total sales revenue ÷ selling price per unit  = P636,400 ÷ P74 per unit  =…

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

A: The cost can be classified into two categories i.e. product cost and period cost. The product cost…

Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A:

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

A: Preparation of Income Statement helps the business entity in determining how much amount of gross…

Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A: SOLUTION- FORMULA- 1-CONTRIBUTION MARGIN =  SALES - VARIABLE COST. 2-GROSS MARGIN = SALES - COGS .…

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

A: Variable Costing - In this costing method, variable costs are considered while preparing the cost of…

Q: Munoz Manufacturing Company produced 1,600 units of inventory in January, Year 2. It expects to…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

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

A: Introduction: A variable costing income statements report that subtracts variable expenses from…

Q: MANO Company produces a single product. Last year, ABC manufactured 17,000 units and sold 13,000…

A: Given: Sales = $780,000 Variable selling and administrative expenses = $88,400 Fixed selling and…

Q: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what…

A: Variable costing income statement is the statement in which the cost of goods which has been sold by…

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

A: Variable costing is the method of costing, where only the variable costs are assigned to the cost of…

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

A: Ending Inventory = Number of Units in Ending Inventory x Cost per Unit Cost per Unit under Variable…

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: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A: Variable Costing: Product Cost under Variable costing includes direct material cost, direct…

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

A: Formula: Total Product costs = Direct Materials + Direct Labor + Variable factory overhead.

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

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

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: Walsh Company manufactured 30,000 units during July. There were no units in inventory on July 1.…

A: Under variable costing , all variable expenses are deducted from revenue from operation to arrive at…

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

A: Under variable costing system, the inventory would consist of only variable expenses.

Q: Serile Pharma places 800 units in production during the month of January. All 800 units are…

A: Direct Materials: At the time of manufacturing, material which is directly related to the finished…

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

A: Particulars Amount    Direct materials $184,100    Direct labor 222,200    Variable factory…

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

A: Variable costing: Variable costing is one of the cost accounting methods. In this method, the…

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

A: Variable costing is a method under which the direct costs are included which varies according to the…

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

A: Preparation of Income income helps the business enterprises in determining the amount of gross…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

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

A: Formula used: Cost per unit of product=Production costUnits produced Amount of inventory=Ending…

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

A: Introduction: To keep track of all costs associated with creating a certain product, "absorption…

Q: Prior to the first month of operations ending October 31, Marshall Inc. estimated the following…

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

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

A: Under the absorption costing, fixed manufacturing overhead is considered as a product cost and…

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.