E1-12 (Static) Classifying Costs [LO 1-4] Blockett Company makes automobile sunshades and incurs the costs listed in the table below. Required: For each of the following costs, choose "Yes" to indicate if the cost is a period or category of product cost and whether it is a prime cost, conversion cost, or both. Note: Select 'No' in the inappropriate cells. Company president's salary Factory rent Cost of reflective material Wages of material cutter Wages of office receptionist Thread and glue Depreciation for salesperson's car Factory supervisor's salary Factory utilities Factory insurance Period Cost Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes PRODUCT COSTS Prime Direct Direct Manufacturing Cost Materials Labor Overhead Yes Conversion Cost

E1-12 (Static) Classifying Costs [LO 1-4] Blockett Company makes automobile sunshades and incurs the costs listed in the table below. Required: For each of the following costs, choose "Yes" to indicate if the cost is a period or category of product cost and whether it is a prime cost, conversion cost, or both. Note: Select 'No' in the inappropriate cells. Company president's salary Factory rent Cost of reflective material Wages of material cutter Wages of office receptionist Thread and glue Depreciation for salesperson's car Factory supervisor's salary Factory utilities Factory insurance Period Cost Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes PRODUCT COSTS Prime Direct Direct Manufacturing Cost Materials Labor Overhead Yes Conversion Cost

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter19: Variable Costing (varcost)

Section: Chapter Questions

Problem 4R: To determine the effect of different levels of production on the company’s income, move to cell B7...

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company You are a management accountant of EON and Brothers Ltd., a manufacturing that produces two products simultaneously in one of their production plants. You are asked to produce a management report on costing techniques. This company follows a traditional approach to costing and absorbs production overhead using machine hours. The company's policy is to add a 50% markup on the unit cost to obtain the selling price. The relevant information is given below: EON and Brothers Ltd. produces two similar products called Alfa and Beta. Total Overheads = £155,000 Machine Hours = 58980 hrs Product Alfa Beta Production Units 2,580 5,100 Material Cost per unit £31 £51 Labour Cost per unit £21 £17 Machine Hours per unit 11 16 After discussing with all the important people of the production plant you have allocated the overhead costs as mentioned below: % Overheads Set up Costs 30 Inspections 40 Materials Handling 30 Cost Pools are as mentioned below: Alfa Beta Total Setups 400 65 465…
For each of the items listed below, select the cost that most likely apply. Note: Select "Not Applicable" if the item doesn't fall in any of the cost category Direct labor Interest expense Sales commissions Utility costs President's salary Wages of assembly-line workers Repairs and maintenance costs Materials-handling costs Executive compensation Salesperson's salary > Answer is complete but not entirely correct. Product Direct Indirect Indirect Indirect Indirect Direct Indirect Indirect Indirect Direct Period, Variable and Fixed ✓Variable XPeriod and fixed x Variable ✓Variable X Period and fixed ✓Variable Variable ✓Variable X Period and fixed XPeriod and fixed Xx
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials 35 per unit 55 per unit Direct labor Overhead costs Variable 20 per unit (per year) Fixed $8,400,000 Selling and administrative costs for the year Variable 750,000 $4,500,000 Fixed Production and sales for the year Units produced 105,000 units 75,000 units 360 per unit Units sold Sales price per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement
Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO 3-1 Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $76 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $352.000, and fixed selling and administrative costs are $266,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Prepare a contribution margin income statement for the break-even sales volume.
File Edit View History Bookmarks Window Help System (Academic) A elearn.squ.edu.om erial Accounting || fall20 Which one of the following is correct about variable costing systems? Select one: 1 a. Normally result into a lower product cost compared to absorption costing systems b. Calculate product cost as the sum of directs materials, direct labor, manufacturing overhead costs, and selling cost c. Calculate product cost as the sum of directs materials, direct labor and manufacturing overhead costs d. Focuses on both variable and fixed costs.
14. Customer life-cycle costs: Select one: a. Are the replacement costs of using a product or service. b. Are the costs to the customer of buying and using a product until it is replaced. c. Are the same as the selling life-cycle prices. d. Focus on marketing costs. e. Are the costs the selling company incurs to satisfy the customer.
multiple choice 1. What is the difference between “Absorption costing”, “Variable costing” and “Throughput costing”?to. Under Variable costing, fixed manufacturing costs are NOT inventoriedb. Under Throughput costing, only direct raw material costs are inventoriedc. Both "a" and "b" are correctd. Neither "a" nor "b" are correct 2. If a manufacturing company does NOT have inventories, the difference between operating income under absorption costing and operating income under variable costing will be:to. equal to the variable overhead that the company incurred.b. equal to the fixed overhead that the company incurredc. equal to the sum of fixed overhead and incurred variable overheadd. neither, both amounts will be equal
Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 27 7 4 9 370,800 183,200 During the year, the company produced 30,900 units and sold 22,900 units. The selling price of the company's product is $73 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. (Do not leave any empty spaces; Input a O wherever it is required.) Absorption Costing Income Statement Cost of goods sold:
Complete the table below by classifying each cost as either a product cost or a period cost; for product costs, further classify as a direct cost or an indirect cost. (Select NA if not applicable.) Cost Amount Productor Period Director Indirect Plastic material and springs for clips $329 select a type of cost Correct answer select a classification Correct answer CEO’s salary 119 select a type of cost Correct answer select a classification Correct answer Advertising 34 select a type of cost Correct answer select a classification…
Que. No. 1a. When production is greater than sales which method’s net operating income will be higher, AC or VC and why? Be precise and to the point in writing the answer. Que. No. 1b. Sharp Company manufactures a product for which the following data and information related to inventory is available. The company uses variable costing for internal management reports and absorption costing for external reports to the shareholders, creditors, and the government. The company has provided the following data:Year-1Year-2Year-3Inventories:Beginning (units)200160180Ending (units)160180220Variable Costing net operating income$1,080,400$1,032,400$996,400The company’s fixed manufacturing overhead per unit was constant at $650 for all the three years.Required: 1. Determine each year’s absorption costing net operating income. Present your answer in the form of a reconciliation report. (you must show all calculations)2. In year four, the company’s variable costing net operating income was $984,400…
*(A)The Mortise Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Mortise has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.Month Cost HoursJanuary $40,000 3,600 February 38,500 3,000 March 36,280 3,300 April 38,000 3,500 May 69,850 5,850 June 45,000 4,250Required:a. What is the slope coefficient?b. What is the constant for the estimated cost equation?c. What is the estimated cost function for the above data? d. What is the estimated total cost at an operating level of 3,100 hours? *(B) The XYY company has received an initial order for eight of its products (GGG). The information about products as follows: - Direct material cost per (GGG) $ 100,000 - Direct- assembly labor time for first GGG 4,000 labor-hours - Learning curve for assembly labor time per GGG 80% cumulative average time- Direct -assembly labor cost $ 50 per hour-…
6. The Fixed and variable costs are costs classification according to: A) Cost traceability B) Value-adding C) Financial reporting Rectangular Snip 7. Cost can be conveniently and economically traced to a cost objected, For example, the salary of factory workers or the raw materials of a product. Consider as: A) Indirect Cost B) Direct Cost C) Non-of the above 8. What is the product unit cost for perfume, which consists of 1000 units and has total direct materials of 8,000 $ and direct labor of 1,500, and overhead is 4,500? A) 14 B) 9.5 C) 14,000 9. July Co. at the end of the financial, The actual overhead costs incurred were 79,950 and the amount applied to the production was 82,000. Therefore the amount of overhead cost is : A) Overapplied B) Underapplied C) None of the above