Cengage X Dsit pS 1 Aary de h napter 9 A6 akeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator-assignment-take&inprogress-false eBook Calculator Print Item Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $28.60 Direct labor 15.10 Fixed factory overhead 4.90 Variable factory overhead 4.30 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. $ Absorption costing Variable costing 5:40 PM ^ ) a ew O A 11/2/2019 hp ins prt sc end home f12 delete f11 fh0 fa num & backspace lock

Cengage X Dsit pS 1 Aary de h napter 9 A6 akeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator-assignment-take&inprogress-false eBook Calculator Print Item Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $28.60 Direct labor 15.10 Fixed factory overhead 4.90 Variable factory overhead 4.30 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. $ Absorption costing Variable costing 5:40 PM ^ ) a ew O A 11/2/2019 hp ins prt sc end home f12 delete f11 fh0 fa num & backspace lock

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 7: Cost of Production Report Helen Company uses FIFO process costing. Dta are as follows:b Beginning inventory 40% complete 25,000 units Units completed during period 500,000 units Ending inventory 70% complete 45,000 units The cost of the beginning inventory was P14,500 and current period production cost were P834,400. Required: Compute the cost of goods coompleted and transferred to finished goods inventory.
Inferring Costing Method; Unit Product Cost [LO6–1] Sierra Company incurs the following costs to produce and sell a single product. [picture1] During the last year, 25,000 units were produced and 22,000 units were sold. The Finished Goodsinventory account at the end of the year shows a balance of $72,000 for the 3,000 unsold units.Required:1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer.2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders.a. Is the $72,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes? Explain.b. At what dollar amount should the 3,000 units be carried in the inventory for externalreporting purposes?
Subject: Cost management & accounting Question No. 3: Absorption and Marginal Costing (remaining part)The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:Beginning inventory 0Units produced 10,000Units sold 8,000Selling price per unit $50Selling and administrative expenses:Variable per unit $5Fixed per year $60,000Manufacturing costs:Direct materials cost per unit $10Direct labor cost per unit $6Variable manufacturing overhead cost per unit $5Fixed manufacturing overhead per year $80,000Assume that direct labor is a variable cost.Required: (remaining part) b. Reconcile the absorption costing and variable costing net operating income figuresa. Prepare an income statement for the year using absorption costing and variable costing
Subject: Cost management & accounting Question No. 3: Absorption and Marginal Costing (remaining part)The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:Beginning inventory 0Units produced 10,000Units sold 8,000Selling price per unit $50Selling and administrative expenses:Variable per unit $5Fixed per year $60,000Manufacturing costs:Direct materials cost per unit $10Direct labor cost per unit $6Variable manufacturing overhead cost per unit $5Fixed manufacturing overhead per year $80,000Assume that direct labor is a variable cost.Required: (remaining part) b. Reconcile the absorption costing and variable costing net operating income figures
ParticularsAmountDirect materialR12Direct laborR50Variable manufacturing overheadR6.50Fixed manufacturing overhead (R81,000/2,550 units)R31.76Unit product cost for the month under absorption costingR100.26 Prepare an income statement for the month using the Marginal costing method
Subject: Cost management & accounting Question No. 3: Absorption and Marginal CostingThe Dorset Corporation produces and sells a single product. The following data refer to the year just completed:Beginning inventory 0Units produced 10,000Units sold 8,000Selling price per unit $50Selling and administrative expenses:Variable per unit $5Fixed per year $60,000Manufacturing costs:Direct materials cost per unit $10Direct labor cost per unit $6Variable manufacturing overhead cost per unit $5Fixed manufacturing overhead per year $80,000Assume that direct labor is a variable cost.Required:a. Prepare an income statement for the year using absorption costing and variable costingb. Reconcile the absorption costing and variable costing net operating income figures
Info in images Question relating to the images: 3. Info in image "ACC PT2" 4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. Unadjusted cost of goods sold [ ] 5. Assume that the $38,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply the information missing below: Direct materials $8,600 Direct labor [ ] Manufacturing overhead [ ] Work in process inventory $38,000
Question 3A product is manufactured by passing materials through two processes. Production costs for2021 January are as follows:Process A Process BDirect materials 4 000 kg @ $3.00 per kg 1 500 kg @ $2.50 per kgDirect labour $2 000 $1 500Overheads 100% of direct labour cost 125% of direct labour costThere is no beginning or ending work in progress inventory.Normal losses:Process A 10%Process B 5%Scrapped values:Process A $1.75 per kgProcess B $2.50 per kgOutput for 2021 January was:Process A 3 500 kgProcess B 5 050 kgA. Prepare Process A and Process B accounts. B. Prepare abnormal loss/gain accounts. C. Explain the term, equivalent units.
TF 3 The following data was prepared by the Oriole Company. Total Variable Fixed Sales price $22/unit Direct materials used $82,650 Direct labor $96,000 Manufacturing overhead $113,670 $17,910 $95,760 Selling and administrative expense $22,700 $13,100 $9,600 Units manufactured 25,200 units Beginning Finished Goods Inventory 19,200 units Ending Finished Goods Inventory 7,000 units Incorrect answer iconYour answer is incorrect. Under absorption costing, what is the cost of goods sold? (Round cost per unit to 2 decimal places, e.g. 2.52 and final answer to 0 decimal place, e.g. 2,152.) Cost of goods sold $enter the cost of goods sold in dollars rounded to 0 decimal places
choose the best answer (mcqs) just choose the no need of any explanation: 1) The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units 0 Units produced 4,800 Units sold 4,000 Sales $ 400,000 Materials cost $ 96,000 Variable conversion cost used $ 48,000 Fixed manufacturing cost $ 72,000 Indirect operating costs (fixed) $ 80,000 The variable costing operating income is: A $120,000 B $104,000 C $140,000 D $128,000 2) Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 30,000 Total fixed manufacturing overhead cost $ 252,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T687 was completed with the…
Problem 1.b.: Computation of Costs of Goods Manufactured (COGM).Akari Inc. provided the following information for its work-in-process inventory account at the end of the current month.Work-in-process Inventory (WIP)Accounts $ Accounts $Beginning balance $19,500 COGM ?Direct materials (DM) $76,200Direct labor (DL) $120,000MOH allocated $72,000Ending Balance $24,300Required: Compute the Costs of Goods Manufactured (COGM) at the end of the current month.Solution: Formula:Beginning WIP+ TMC (total manufacturing costs) for the periodDM usedDL incurredMOH allocatedTMC in WIP- Ending WIP= COGM
The following cost details relate to one unit of product Alphatron.Variable materials Variable labour Production overheadsVariableFixedSelling and distribution overheadsVariableFixed Total cost£ per unit 23.52 20.883.24 22.4617.98 8.16 96.24In a marginal costing system, the value of a closing inventory of 3,400 units of Alphatron will be:a) £327,216b) £238,339c) £223,107d) £161,976