
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
Units produced this year
Units sold this year.
40,000 units
24,000 units
$16 per unit
Direct materials
Direct labor
$ 18 per unit
Variable overhead
Fixed overhead
$ 3 per unit
$ 220,000 in total
Belle Company's product is sold for $63 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $240,000 per year. Compute the net income under absorption costing.
Multiple Choice
O
O
$64,000
$69,200
$165,760
$204,000
$229,200
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- Data concerning Dakota Enterprises' operations last year appear below: Units in the Beginning Inventory -0- Units Units Produced 4,000 Units Units Sold 3,900 Units Selling Price Per Unit $140 Variable Costs Per Unit: Direct Material $41 Direct Labor 43 Manufacturing Overhead 6 Sellling and Administrative Costs 4 Fixed Costs in Total: Manufacturing Overhead $84,000 Selling and Administrative Costs 39,000 Match each of the following items with the proper amount. Unit Product Cost , Using Absorption Costing Unit Gross Margin…arrow_forwardBelle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 105,000 units Units sold this year 63,000 units Direct materials $ 29 per unit Direct labor $ 31 per unit Variable overhead $ 3 per unit Fixed overhead $ 918,750 in total Belle Company's product is sold for $89 per unit a Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $370,000 per year. Compute the net income under variable costing.arrow_forward2 Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Income Statement (Absorption Costing) Sales (80,000 units × $45 per unit) $ 3,600,000 Cost of goods sold 2,000,000 Gross profit 1,600,000 Selling and administrative expenses 560,000 Income $ 1,040,000 Additional Information Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit consists of the following. Direct materials $ 4 per unit Direct labor $ 10 per unit Variable overhead $ 4 per unit Fixed overhead ($700,000 / 100,000 units) $ 7 per unit Required:Prepare an income statement for the company under variable costing.arrow_forward
- Walsh Company manufactured 30,000 units during July. There were no units in inventory on July 1. Costs and expenses for July were as follows: Total Num Total Cost Number of Units Unit Cost Manufacturing costs: Variable $660,000 30,000 $22.00 Fixed 300,000 30,000 10.00 Total 960,000 Selling and administrative expenses: Variable $200,000 Fixed 160,000 Total. $360,000 If the company sells 25,000 units at $75 (units manufactured exceed units sold), prepare an income statement for July using: b. Variable costingarrow_forwardThe following data pertain to the operations of Deci, Inc. in the most recent month for the production of its only product, which sells for $297: Beginning inventory: 4, 000 Units Produced: 46,000 Units Sold: 47,000 Variable Costs per unit: Direct materials: $84 Direct Labor: $93 Manufacturing Overhead: $18 Selling and Administrative: $30 Fixed Costs: Manufacturing overhead: $1,912, 680 Selling and administrative: $1,954, 260 What is the variable costing unit product cost?arrow_forwardKeyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations Selling price $113 Units in beginning inventory 3700 Units produced 8,600 Units sold 8,700 Units in ending inventory 600 Variable costs per unit: Direct materials: Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 24 $ 41 $5 $ 15 $68,800 $ 162,700 The company produces the same number of units every month, although the sales in units very from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month What is the net operating income for the month under absorption costing?arrow_forward
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