​Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable​ costing, ________.   A. its operating income will be the same as under absorption costing   B. its operating income for the period will be lower than under absorption costing   C. its operating income for the period will be higher than under absorption costing   D. its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing

Q: what is the beginning inventory in units?

A: Begining inventory - ending inventory = income

Q: Pennell Company gathered the following information for the year ended ecember 31, 2018. During the…

A: Solution:- Calculation of contribution margin per unit as follows under:-

Q: Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the…

A: Factory Overhead = 350,000 + ( 6 x 12,000 ) = 422,000 Selling Expense- Sales Salaries and…

Q: Pennell Company gathered the following information for the year ended December 31, 2018. During the…

A: Sales: It is an economic activity. Under this, one party sell its goods or services to another…

Q: Varto Company has 12,400 units of its sole product in inventory that it produced last year at a cost…

A: It is to be noted that the last of th inventory incurred last year is a sunk cost and not relevant…

Q: Mackenzie, Inc. has collected the following data.​ (There are no beginning​ inventories.)   Units…

A: Ending inventory units=Units produced-Units sold=600-550=50 units

Q: Mobile, Inc. manufactured 700 units of a new product A during the year. The variable cost of product…

A: Inventory forms a part of current assets of the entity and is included in the asset section of…

Q: Betsy's Pies, Inc. has provided the following financial information for the​ year:   Finished Goods​…

A: There are two methods for the unit product cost. Absorption​ costing: As per this method, Unit…

Q: Reta Inc has the following cost details:     per kg. Material cost= 200 Direct labour= 40…

A: As per the Accounting standard "Valuation of Inventories" cost of conversion includes a systematic…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Answer -    Particulars Year 1 2 3         Difference in Operating Income 10800 32000 0…

Q: A company reports the following information for the current year: Units Produced (25,000)< Units…

A: Under absorption  costing  FOH is absorbed on units produced  during  year

Q: of the last three years. The units in year 1 beginning inventory were based on production of 500…

A: The variable costing income statement treats fixed manufacturing cost to be expensed during the…

Q: . Is the company using absorption costing or variable costing to cost units in the Finished Goods…

A: Solution:- Absorption costing: Absorption costing is the method of cost allocation, which helps to…

Q: Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is…

A: EOQ or economic order quantity is the ideal order of quantity purchased a company at a certain rate…

Q: [The following information applies to the questions displaye Oak Mart, a producer of solid oak…

A: Using absorption Costing method, the fixed costs are added to the cost of product and fixed cost is…

Q: Nelter Corporation, which has only one product, has provided the following data concerning its most…

A:

Q: Inventory Valuation under Absorption and Variable Costing At the end of the first year of…

A: Absorption costing is a method of calculating cost of a product by considering all the indirect…

Q: Nelter Corporation, which has only one product, has provided the following data concerning its most…

A: Variable Costing: Unit Cost = Direct Materials + Direct Labor + Variable Manufacturing OverheadUnit…

Q: During the previous year, Casually Company had the following data: Units in beginning inventory…

A: 1.  Product cost Per Unit under absorption costing, would be calculated as follows :  Particular…

Q: A condensed income statement by product line for Crown Beverage Inc. indicated the following for…

A: Solution:- Calculation of Differential cost analysis as follows:-

Q: Varto Company has 10,400 units of its sole product in inventory that it produced last year at a cost…

A: This question deals with the concept of sale or further process decision making. In this decision…

Q: The following information was extracted from the first year absorption-based accounting records of…

A: Solution: Income under variable costing = Sales - Variable costs - Fixed costs

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Fixed cost per unit=Total fixed manufacturing costProduction (Year 2)=$72,000920=$78.260869565

Q: During the most recent year, ABC Company reported the following data. During the year 10,000 units…

A: Under absorption costing fixed overhead costs are allocated to each unit of product produced during…

Q: Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for…

A: Following are the calculation of ending inventory under variable coting:

Q: Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is…

A: Orders 250 units at a time x 30 orders        7,500 Ordering cost per order ($1,100 / 30) $36.67…

Q: In February 2018, Mathew Mart produced 6000 jars of malted drink  and sold 5,000 jars.  The sale…

A: 1. Calculate Mathew Mart total cost per unit as shown below:

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: Fixed overhead per unit = total Fixed overhead/units produced = $390000/39000 units = $10 per unit

Q: For 2020, Roberts Ltd., had sales of 150,000 units and production of 210,000 units. Other…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at…

A: A variable costing system refers to the costing system in which manufacturing cost is computed after…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Fixed manufacturing cost per unit = Total Fixed manufacturing cost  / Total production = $72,000 /…

Q: Pacheo Corporation, which has only one product, has provided the following data concerning its most…

A: GIVEN   Pacheo Corporation, which has only one product, has provided the following data concerning…

Q: Belle Company reports the following information for the current year. All beginning inventory…

A: In the absorption costing, fixed manufacturing overhead is treated as product cost and allocated to…

Q: Hayes Incorporated provided the following information for the current year: Beginning inventory…

A: Variable Costing: Product Cost under Variable costing includes direct material cost, direct…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: Introduction: The profit a business makes after subtracting the costs of manufacturing and selling…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: Shazam Company had 16,000 units in its beginning inventory. During the year, the company’s variable…

A: Absorption costing and variable costing are two methods which are used. Under absorption costing,…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: The gross profit is the excess of revenue over the cost of goods sold. It is also the amount…

Q: A condensed income statement by product line for British Beverage Inc. indicated the following for…

A: Continue King Cola (Alternative 1) Discontinue King Cola (Alternative 2) Differential…

Q: A condensed income statement by product line for British Beverage Inc. indicated the following for…

A: We shall calculate the variable and fixed components of cost of goods sold and operating expenses to…

Q: Norwood Corporation is considering changing its method of inventory valuation from absorption…

A: In direct costing, the fixed production overhead is considered as period cost and not included in…

Q: A condensed income statement by product line for Crown Beverage Inc. indicated the following for…

A: GIVEN     A condensed income statement by product line for Crown Beverage Inc. indicated the…

Q: [The following information applies to the questions displayed below.] Oak Mart, a producer of solid…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Janos Corporation, which has only one product, has provided the following data concerning its most…

A: Variable costing: Variable costing is one of the cost accounting methods. In this method, the…

Q: During the year, ABS Corporation produced 500 units of new products. The new product’s variable and…

A: Absorption costing and variable costing are two methods of costing. Under absorption costing, total…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: Beech Company produces a single product. The company has 55,000 units in its beginning inventory.…

A: Profit under Variable costing is lower if ending inventory is higher than beginning inventory Units…

Q: In June 2019, Juggle Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.The sale…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.