Exercise #8 Inventory Costing Methods (ADOPTED) The following information was made available for a particular product sold by Blue Company: | April 2 April 6 April 12 April 18 April 24 700 units @ Php 158 600 units @ Php 200 800 units @ Php 164 700 units @ Php 220 500 units @ Php 170 Purchase Sale Purchase Sale Purchase There was no inventory of this particular product at the start of April.

Exercise #8 Inventory Costing Methods (ADOPTED) The following information was made available for a particular product sold by Blue Company: | April 2 April 6 April 12 April 18 April 24 700 units @ Php 158 600 units @ Php 200 800 units @ Php 164 700 units @ Php 220 500 units @ Php 170 Purchase Sale Purchase Sale Purchase There was no inventory of this particular product at the start of April.

Name: B. assume that blue uses the perpetual iventory system compute the end
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Description: B. assume that blue uses the perpetual iventory system compute the ending inventory cost , cost of good sold , and gros profit for the inventory costing method 4. fifo 5. lifo 6. moving average Exercise #8Inventory Costing Methods(ADOPTED) The follow

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercise 18.3. Required: 1. Calculate the cost of each unit using variable...

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Refer to Cornerstone Exercise 18.3. Required: 1. Calculate the cost of each unit using variable costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using variable costing? 3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Communication The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report. Home Theater Speakers Wireless Speakers Wireless Headphones Total Sales 1,500,000 1,200,000 900,000 3,600,000 Cost of goods sold 1,050,000 720,000 810,000 2,580,000 Gross profit 450,000 480,000 90,000 1,020,000 Marketing expenses 600,000 120,000 72,000 792,000 Income from operations (150,000) 360,000 18,000 228,000 In addition, the controller interviewed the vice president of marketing, who provided the following insight into the company's three products: The home theater speakers are an older product that is highly recognized in the marketplace. The wireless speakers are a new product that was just recently bunched. The wireless headphones are a new technology that has no competition in the marketplace, and it is hoped that they will become an important future addition to the companys product portfolio. Initial indications are that the product is well received by customers. The controller believes that the manufacturing costs for all three products are in line with expectations. Based on the information provided: 1. Calculate the ratio of gross profit to sales and the ratio of income from operations to sales for each product. 2. Write a brief (one page) memo using the product profitability report and the calculations in (1) to make recommendations to management with respect to strategies for the three products.
Appendix Absorption costing income statement On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable existing concept: Sales (420,000 units) 7,450,000 Variable cost of goods sold: Variable cost of goods manufactured (500,000 units x 14 per unit) 7,000,000 Less ending inventory (80,000 units x 14 per unit) 1,120,000 Variable cost of goods sold 5,880,000 Manufacturing margin 1,570,000 Variable selling and administrative expenses 80,000 Contribution margin 1,490,000 Fixed costs: Fixed manufacturing costs 160,000 Fixed selling and administrative expenses 75,000 235,000 Income from operations 1,255,000 a. Prepare an absorption costing income statement. b. Reconcile the variable costing income from operations of 1,255,000 with the absorption costing income from operations determined in (a).
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
Print Item Question Content Area High-Low Method The manufacturing costs of Kellam Industries for the first three months of the year follow: Total Costs Units Produced January $425,700 2,365 units February 565,710 4,420 March 662,200 6,665 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2
NEED IT ASAP LO.3 (FIFO cost assignment) In October 2010, Tibbetts Company had the following production and cost data:Beginning inventory units (80% complete as to DM;45% complete as to DL; 30% complete as to OH)42,600October completed production 1,570,000Units in ending inventory (35% complete as to DM;15% complete as to DL; 5% complete as to OH) 28,400Beginning inventory cost $458,482October direct material cost per EUP $10.74October direct labor cost per EUP $13.88October overhead cost per EUP $24.80 a. What is the cost of the beginning inventory transferred out in October?b. What is the total cost transferred out in October?c. What is the cost of ending inventory at the end of October?d. What is the total cost to account for during October?
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…
Question Q1Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost:Fixed Manufacturing overhead Rs 40,000Fixed Selling & Administrative Rs 60,000Selling Price per unit Rs 100Variable cost per unit:Direct Materials Rs 30Direct labor Rs 10Variable Manufacturing overhead Rs 5Variable Selling & Administrative Rs 2Units In beginning Inventory 0Units Produced 2000Units Sold 1900 Required: a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
Problem 12 Compute the Cost of Goods Sold for 2020 of Pillows Company considering the followinginformation:  Raw materials purchased was P2,500,000 with freight-in of P120,000 Purchase returns was P50,000 and purchase discount is 60% of purchase returns Raw materials beginning was P460,000 Raw materials end was P40,000 more than the beginning inventory Direct labor is P1,000,000 Factory overhead is 50% of direct labor Total goods placed in process is 150% of manufacturing cost WIP, end is 75% of WIP, beg Finished goods beginning balance is lesser by P100,000 than the ending balance whichwas P600,000
Question ii) Huzaifa’s Company produces and sells a single product - cricket bat. Selected costs and operating data relating to the product are given below for the year ended 2017. Opening Inventory 5,000 units, selling price $45, total sales 40,000 units. Variable costs per unit: DM $7, DL $5, MOH $3, selling and admin expense is 40% of Direct labor. Fixed MOH $5 per unit. Total fixed selling and admin expense ratio is 0.875:1 to total fixed manufacturing overhead. The company’s total production is seven times to its opening inventory. Required: ii1.. Compute the unit product cost for Variable Costing and Absorption Costing. ii2. Prepare Variable and Absorption Costing income statement for year ended 2017. ii3. Explain briefly why net operating income differs between variable and absorption costing.
Problem 1. (40%) The EG Company produces and sells one product. The following data refer to the year just completed:Units in beginning inventory ..........................0Units produced................................................8,900Units sold........................................................8,500Units in ending inventory ...............................400Variable costs per unit:Direct materials ...........................................$26Direct labor..................................................$25Variable manufacturing overhead ...............$4Variable selling and administrative expense.................................................................$4Fixed costs:Fixed manufacturing overhead ....................$249,200Fixed selling and administrative expense....$17,000Sales Price is $100 per unit.Required: b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing.d.…
Exercise 2: Flow of Cost - Cost System You are required to compute for the unknowns in the following accounts: Materials Inventory 7,950 Purchase Returns 750 Purchases 27,500 Direct Materials ? Indirect Materials (e) Inventory, end 5,100 Work in Process Inventory 13,650 Cost of Goods Sold Completed (c) Direct Materials Cost 23,500 Direct Labor Cost (a) Factory Overhead Applied (100% of direct labor cost) (b) Inventory 11,750 62,150 Finished Goods Inventory 12,500 Cost of Goods Sold (d) Cost of Goods Sold Completed ? Inventory, end 11,250