Gammaro Company uses standard cost- ing. Tim Sweeney, the new president of Gammaro Company, is presented with the following data for 2017: Home Insert Page Layout Formulas Data Review View Gammaro Company Income Statements for the Year Ended December 31, 2017 Variable Costing $9,350,000 4,695,000 1,350,000 Absorption Costing $9.350,000 5,855,000 5 Revenues 6 Cost of goods sold (at standard costs) 7 Fixed manufacturing overhead (budgeted) 8 Fixed manufacturing overhead variances (all unfavorable): 9 Spending 10 Production volume 11 Total marketing and administrative costs (all fixed) 12 Total costs 13 Operating income 125,000 125,000 405,000 1,570,000 7,955,000 $1,395,000 1,570,000 7.740,000 $1,610,000 14 15 Inventories (at standard costs) 16 December 31, 2016 17 December 31, 2017 $1,345,000 45,000 $1,730,000 215,000

Gammaro Company uses standard cost- ing. Tim Sweeney, the new president of Gammaro Company, is presented with the following data for 2017: Home Insert Page Layout Formulas Data Review View Gammaro Company Income Statements for the Year Ended December 31, 2017 Variable Costing $9,350,000 4,695,000 1,350,000 Absorption Costing $9.350,000 5,855,000 5 Revenues 6 Cost of goods sold (at standard costs) 7 Fixed manufacturing overhead (budgeted) 8 Fixed manufacturing overhead variances (all unfavorable): 9 Spending 10 Production volume 11 Total marketing and administrative costs (all fixed) 12 Total costs 13 Operating income 125,000 125,000 405,000 1,570,000 7,955,000 $1,395,000 1,570,000 7.740,000 $1,610,000 14 15 Inventories (at standard costs) 16 December 31, 2016 17 December 31, 2017 $1,345,000 45,000 $1,730,000 215,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5PA: Wachowski Company reported these cost data for the year 2017. Use the data to complete the following...

See similar textbooks

Similar questions

This cost data from Hickory Furniture is for the year 2017. Using the high-low method, express the companys utility costs as an equation where X represents number of tables produced. Predict the utility costs if 800 tables are produced. Predict the utility costs if 600 tables are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between number of tables produced and utility expenses.
Practice: The following data are taken from the accounting records of Gregory Mfg. Co.: 2019 2018 Ending inventories: Materials $ 100,000 $80,000 Work in Process $64,000 $56,000 Finished Goods $140,000 $170,000 Manufacturing goods: Direct materials used $657,000 Direct labor costs charged to production $270,000 Manufacturing Overhead $378,000 Show All Calculations: Outline a schedule of cost of goods manufactured for 2019 in good form The company generally prices products adding 20% to the cost of goods sold. Determine the total revenue the company would have generated in 2019.
Incomplete manufacturing cost data for Horizon Company for 2020 are presented as follows for four different situations. (a) Indicate the missing amount for each letter. DirectMaterialsUsed DirectLaborUsed ManufacturingOverhead TotalManufacturingCosts Work inProcess1/1 Work inProcess12/31 Cost of GoodsManufactured (1) $117,000 $140,000 $87,000 $ (a) $33,000 $ (b) $360,000 (2) (c) 200,000 132,000 450,000 (d) 40,000 470,000 (3) 80,000 100,000 (e) 265,000 60,000 80,000 (f) (4) 70,000 (g) 75,000 288
Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method. INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022:Sales 3 200 unitsSelling price per unit R100Finished products on 01 March 2022 400 unitsProducts manufactured during the month 3 600 unitsVariable manufacturing costs per unit R26Variable selling and administrative costs per unit sold R12Fixed manufacturing costs R25 200Fixed selling and administrative costs R12 400 Additional informationThe variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March2022 was R21.60…
Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method. INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022: Sales 3 200 unitsSelling price per unit R100Finished products on 01 March 2022 400 unitsProducts manufactured during the month 3 600 unitsVariable manufacturing costs per unit R26Variable selling and administrative costs per unit sold R12Fixed manufacturing costs R25 200Fixed selling and administrative costs R12 400
4.The following were taken from accounting records of Bella Company in December 2020.Prime cost, P301,000Gross profit rate on sales, 20%Cost of goods available for sale, P460,000Direct materials purchased, P170,000Work in process, December 1, 2020, P34,000Direct Materials, December 1, 2020, P16,000Finished goods, December 1, 2020, P30,000Factory overhead, 40% of conversion cost.Sales, P500,000Direct labor, P180,000Compute for December 31, 2020: (1) Direct materials inventory; (2) Work in process inventory; (3) Finished goodsinventory: A.(1) P6,000 ; (2) P25,400 ; (3) P30,000B. (1) P49,000 ; (2) P25,000 ; (3) P30,000C. (1) P65,000 ; (2) P25,400 ; (3) P60,000D. (1) P65,000 ; (2) P25,000 ; (3) P60,000
This cost data from Hickory Furniture is for the year 2017. Hickory Furniture data Month Numbers of Tables Produced Factory Utility Expenses January 550 $2,063 February 710 2,663 March 650 2,438 April 470 1,823 May 512 1,920 June 625 2,344 July 805 3,019 August 750 2,813 September 675 2,531 October 525 1,969 November 875 3,281 December 685 2,569 A) Using the high-low method, express the company’s utility costs as an equation where X represents the number of tables produced.Y=$ + x B) Predict the utility costs if 800 tables are produced. C) Predict the utility costs if 600 tables are produced.
Complete this question by entering your answers in the tabs below. 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 Direct labor $ 55 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,350,000 (per year) Selling and administrative costs for the year Variable $ 775,000 Fixed $ 4,500,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit $ 360 per unit Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Net income (loss)
How do I figure out the pretax net nonoperating expense ? (in thousands) Dec. 29, 2016 Dec. 30, 2015 Revenues Circulation $ 880,543 $ 851,790 Advertising 580,732 638,709 Other 94,067 88,716 Total revenues 1,555,342 1,579,215 Production costs Wages and benefits 363,051 354,516 Raw materials 72,325 77,176 Other 192,728 186,120 Total production costs 628,104 617,812 Selling, general and administrative costs 721,083 713,837 Depreciation and amortization 61,723 61,597 Total operating costs 1,410,910 1,393,246 Restructuring charge 14,804 0 Multiemployer pension plan withdrawal expense 6,730 9,055 Pension settlement charges 21,294 40,329 Early termination charge 0 0 Operating profit 101,604 136,585 Loss from joint ventures (36,273) (783) Interest expense, net 34,805 39,050 Income from continuing operations…
Wolsey Industries Inc. expects to maintain the same inventories at the end of 2016 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: 1 Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials — $46.00 4 Direct labor — 40.00 5 Factory overhead $200,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 110,000.00 8.00 8 Advertising 40,000.00 — 9 Travel 12,000.00 — 10 Miscellaneous selling expense 7,600.00 1.00 11 Administrative expenses: 12 Office and officers’ salaries 132,000.00 — 13 Supplies 10,000.00 4.00 14…
The following figures have been extracted from the records of Necon manufacturing companyfor the year ending 31st December, 2019. You are required to prepare a statement of costshowing : (a) Cost of raw materials consumed(b) Prime Cost (c) Factory Cost(d) Cost of production(e) Cost of goods sold (f)Total cost of goods sold and profit on sales. $Stock of Raw Materials (1-1-19) 3,000Stock of Raw Materials (31-12-19) 2,400Purchases of Raw materials 14,000Stock of work-in-progress (1-1-19) 1,000Stock of work-in-progress (31-12-19) 800Carriage inward 500Manufacturing wages 4,000Other direct expenses 200Indirect wages 1,000Experiment expenses 400Wastage of materials…
Bubba Manufacturing Company provided the following information for the fiscal year toJune 30, 2020:Inventories 01/07/2019 30/06/2020Direct MaterialsWork-in-ProcessFinished Goods$72,000107,000149,500$65,000128,000141,700Other information:Office cleaner’s wages 4,500Sales Revenue 1,031,000Raw materials purchased 235,000Factory wages 239,700Indirect materials 23,500Delivery truck driver’s wages 15,400Indirect labor 9,500Depreciation on factory plant & equipment 32,000Insurance 1 60,000Depreciation on delivery truck 7,250Utilities 2 118,750Administrative salaries 41,250Special Design Costs 5,000Selling expenses 9,000Sales Commission 2% of gross profit1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general& administrative costs.2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to theoffice area.Requirements:a) What was the amount of direct materials used in production?b) What was the amount of manufacturing…