Gurriel Corporation manufactures and sells laptop computers and uses standard costing. For the month of October there was no beginning inventory, there were 1,500 units produced and 1,250 units sold. The manufacturing variable cost per unit is $770 and the operating cost per unit was $625. The fixed manufacturing cost is $450,000 and the fixed operating cost is $75,000. The selling price per unit is $1,850. Required Prepare the income statement for Gurriel Corporation for October under variable costing.
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Question 1.4
Gurriel Corporation manufactures and sells laptop computers and uses
Required
- Prepare the income statement for Gurriel Corporation for October under variable costing.
Step by step
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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?Case Study 1- Output Decisions Using Systems of Linear Equations Let's assume that you have a company that buys goods from a local factory and you resell them online . .You buy product A for $ 16 and sell it for $ 19 . Each unit of product B brings you $ 12 of profit and each unit of product costs $ 31 . You lost your inventory books but you have the following information about the last month : Your total profit was $ 17,334 The total number of products B and C you sold were 1,269 The only delivery of product you received was for $ 15,531 You fulfilled an order for one product A and one product C and you charged customer $ 56 . Find the number of sold items and the profit for each product .14. Company XYZ is a smart phone merchant. The company purchases smart phones directly from the manufacturer and sells them to customers. During the month of April, the company purchased 60 smart phones and paid $ 900 for each one. The company managed to sell 55 smart phones during the same month for $ 1,200 each. The company incurred total Selling and Administrative costs of $ 4,000 of which 20% is fixed costs. Assume that XYZ did not have a beginning inventory during April, what was the gross margin ($) for April?
- Title 1. You are inventory manager of Diego Supplies Inc. You computed the EOQ to be 500 units. Annual... Description </o:p> 1. You are inventory manager of Diego Supplies Inc. You computed the EOQ to be 500 units. Annual demand for the company is 5,000 units, and holding cost is $4 per unit. What is the ordering cost? 2. G-Tech’s monthly demand is 250 units. You are in charge of the inventory department. You know that the holding cost is $60 per unit and ordering cost is $100 per order. What is the EOQ? What is the number of orders per year? What is the annual holding cost? If lead time L is one week and demand rate is 60 units per week, what is the ROP?Question 3 A Lighting industry manufactures and sells a single product, heavy-duty battery operated standby lamp. The financial controller has prepared the following income statement for the most recent year: An Industry Income Statement under Absorption costing, for the year ended December 31. Sales Revenue RM2,450,000 Less: Cost of Goods Sold RM1,140,000 Gross Profit RM1,310,000 Less: Operating Expenses RM 750,000 Operating Income RM 560,000 The company produced 40,000 units and sold 30,000 units during the ear ending Dec 31. Fixed manufacturing overhead (MOH) for the year was RM320,000, while fixed operating expenses were RM450,000. Assume per unit cost of Direct Material and direct labor is RM15 and RM12 respectively. The company had no beginning inventory. Requirements Will the company’s operating income under variable costing be higher, lower or the same as operating income under absorption costing? Why? Project the company’s operating income…Q4 Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost: Fixed Manufacturing overhead Rs 40,000 Fixed Selling & Administrative Rs 60,000 Selling Price per unit Rs 100 Variable cost per unit: Direct Materials Rs 30 Direct labor Rs 10 Variable Manufacturing Overhead Rs 5 Variable Selling & Administrative Rs 2 Units In beginning Inventory 0 Units Produced 2000 Units 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…
- 7. Which one of these is not an objective of cost accounting? a.Assisting shareholders in decision making b.Cost control and reduction c.Ascertainment of cost d.Determination of selling price 8. Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 6%. a.283 units b.245 units c.219 units d.310 unitsjust solve the given mcqs: 1) Wolanski Corporation has provided the following data for its most recent year of operations: Selling price per unit $ 48 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 11 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 110,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Units in beginning inventory 0 Units produced during the year 11,000 Units sold during the year 8,000 Units in ending inventory 3,000 The unit product cost under variable costing is closest to: A $31.00 B $25.00 C $21.00 D $35.00 2) Kern Corporation produces a single product. Selected information concerning the operations of the company follow: Units in beginning inventory 0 Units…Question 1. Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that follow. Number of Units Produced Total Cost January 4,360 $65,600 February 275 6,250 March 1,000 15,000 April 5,025 101,250 May 1,750 32,500 June 3,015 48,000 1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Total Costs = (Variable Cost Per Unit x Number of Units Produced) + Fixed Cost. Complete the following table. Total Fixed Cost Variable Cost per Unit 2. With your Total Fixed Cost and Variable Cost per Unit from the high-low method, compute the total cost for the following values of N (Number of Units Produced).…
- QUESTION 1 a) The annual demand for Praise Limited’s inventory is 10,500 units. The item costs GH¢400 a unit to purchase. The holding cost for one unit for one year is 12% of the unit cost and ordering costs are GH¢450 per order. The supplier offers a 2% discount for orders of 700 units or more and a discount of 3% for orders of 950 units or more. Required: Determine the cost minimising order size of the company. b) Kwame after his National Service and with no hope of securing a job in the formal sector has decided to run a taxi service. The following forecast has been made for the operation of a service between Abisim and Sunyani. i) Revenue totaling GH¢300 a week for 52 weeks in a year. This is net of fuel and other variable costs. ii) Tyres; four pieces for a year at GH¢120 per unit. iii) Maintenance and servicing; GH¢120 per month. iv) Salaries GH¢3,000 per year v) Insurance GH¢350 per year The net cash flow will increase at 5% per annum for the next five years due to inflation.…PROBLEM 5 Using the EOQ Model, Tokyo Company computed the economic order quantity for one of the materials it uses in its production to be 4,000 units. The Company maintains safety stock of 300 units. The quarterly demand for the material is 10,000 units. The order cost is 200 per order. The purchase price of the material is P4. The annual Inventory carrying cost is equal to 25% of the purchase price. Note: USE AN EOQ MODEL - THE ANSWER OF 1 & 2 SHOULD BE THE SAME 1. What is the annual inventory carrying cost? 2. The total inventory order cost per year is?SOLVE THE GIVEN MCQS: 1) Kaaua Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 83 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 7 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 396,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 72,000 Year 1 Year 2 Units in beginning inventory 0 2,000 Units produced during the year 12,000 11,000 Units sold during the year 10,000 9,000 Units in ending inventory 2,000 4,000 Which of the following statements is true for Year 2? A The amount of fixed manufacturing overhead deferred in inventories is $534,000 B The amount of fixed manufacturing overhead deferred in inventories is $78,000 C The amount of fixed…
