Please help me with all answers thanku Ch 6During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Year 1Year 2$1,708,000$ 1,098,000540,000558,000300,000$ 258,000Sales ($61 per unit)Cost of goods sold (@ $30 per unit)Gross marginSelling and administrative expensesNet operating income*$3 per unit variable, $246,000 fixed each year.The company's $30 unit product cost is computed as follows:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead ($276,000+ 23,000 units)Absorption costing unit product costProduction and cost data for the first two years of operations are:Year 123,00018,000Units producedUnits soldYear 223,00028,000840,000868,000330,000$538,0005.6312$:30SavedRequired:1. Using variable costing, what is the unit product cost for both years?2. What is the variable costing net operating income in Year 1 and in Year 2?3. Reconcile the absorption costing and the variable costing net operating income figures for each year.Complete this question by entering your answers in the tabs below.Prey207 of 10wwwIIINext >

ABSORPTION COSTING Absorption Costing is a Cost managerial Accounting method in which All Cost…

Answered: Ch 6 During Heaton Company's first two…

Financial & Managerial Accounting

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Chapter20: Variable Costing For Management Analysis

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Problem 20.4BPR: Salespersons' report and analysis Pachec Inc. employs seven salespersons to sell and distribute its...

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Profit center responsibility reporting XSport Sporting Goods Co. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: SalesWinter Sports Division.......................................... 10,500,000 SalesSummer Sports Division........................................ 13,600,000 Cost of Goods SoldWinter Sports Division ............................ 6,300,000 Cost of Goods SoldSummer Sports Division........................... 7,888,000 Sales ExpenseWinter Sports Division ................................. 1,680,000 Sales ExpenseSummer Sports Division ............................... 1,904,000 Administrative ExpenseWinter Sports Division........................ 1,050,000 Administrative ExpenseSummer Sports Division....................... 1,210,400 Advertising Expense .................................................. 482,000 Transportation Expense ............................................... 240,000 Accounts Receivable Collection Expense................................ 120,500 Warehouse Expense................................................... 1,200,000 The bases to be used in allocating expenses, together with other essential information, are as follows: A. Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, 216,900; Summer Sports Division, 265,100. B. Transportation expensecharged back to divisions at a charge rate of 8.00 per bill of lading: Winter Sports Division, 14,400 bills of lading; Summer Sports Division, 15,600 bills of lading. C. Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of 5.00 per invoice: Winter Sports Division. 9,640 sales invoices; Summer Sports Division, 14,460 sales invoices. D. Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division. 94,000 square feet; Summer Sports Division, 106,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Provide supporting calculations for service department charges.
Salespersons' report and analysis Pachec Inc. employs seven salespersons to sell and distribute its product throughout the slate. Data taken from reports received from the salespersons during the year ended June 30 are as Follows: Instructions 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. 2. Which salesperson generated the highest contribution margin ratio for the year and why? 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.
Effect of proposals on divisional performance A condensed income statement for the Electronics Division of Gihbli Industries Inc. for the year ended December 31, 20Y9, is as follows: Sales 1,575,000 Cost of goods sold 891,000 Gross profit 684,000 Operating expenses 558,000 Income from operations 126,000 Invested assets 1,050,000 Assume that the Electronics Division received no charges from service departments. The president of Gihbli Industries Inc. has indicated that the division's return on a 1,050,000 investment must be increased to at least 20% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a hook value of 300,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would be less than the amount of depreciation expense on the old equipment by 31,400. This decrease in expense would be included as part of the cost of goods sold. Sales would remain unchanged. Proposal 2: Reduce invested assets by discontinuing a product line. This action would eliminate sales of 180,000, reduce cost of goods sold by 119,550, and reduce operating expenses by 60,000. Assets of 112,500 would be transferred to other divisions at no gain or loss. Proposal3: Purchase new and more efficient machinery and thereby reduce the cost of goods sold by 189,000 after considering the effects of depreciation expense on the new equipment. Sales would remain unchanged, and the old machinery, which has no remaining book value, would be scrapped at no gain or loss. The new machinery would increase invested assets by 918,750 for the year. Instructions 1. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for the Electronics Division for the past year. (Round percentages and investment turnover to one decimal place.) 2. Prepare condensed estimated income statements and compute the invested assets for each proposal. 3. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each proposal. (Round percentages and investment turnover to one decimal place.) 4. Which of the three proposals would meet the required 20% return on investment? 5. If the Electronics Division were in an industry where the profit margin could not be increased, how much would the investment turnover have to increase to meet the presidents required 20% return on investment? (Round to one decimal place.)

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