History BookmarksPeopleWindow Help16% [4Thu Apr 9 10:09 AMCengageNOWv2 | Online teach xNorton SecurityRestargenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmerUpdates completed. Please restartyour computer.LaterCaicuiatoTFint iemTBarnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1Sales$2,160,000Variable cost of goods sold:Variable cost of goods manufactured$1,620,000Inventory, March 31(324,000)Total variable cost of goods sold(1,296,000)Manufacturing margin$864,000Total variable selling and administrative expenses(96,000)Contribution margin$768,000Fixed costs:Fixed manufacturing costs$210,000Fixed selling and administrative expenses45,000Total fixed costs(255,000)Operating income$513,000Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorptioncosting concept.Variable costing$4Absorption costingAMacBook80000F3F4DIIDDF5F6F7F8F9F10F11F12&8.9-%3D{1+ I|%24%24

In Variable costing method, only variable expenses are taken for calculation, which varies according…

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Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter27: Lean Principles, Lean Accounting, And Activity Analysis

Section: Chapter Questions

Problem 27.20EX

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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.
CH11_HW_QA2_PIR Required 1: 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.) Throughput Time Manufacturing Cycle Efficiency (MCE) Delivery Cycle Time Month 1 days % days Month 2 days % days Month 3 days % days Month 4 days % days Required 3: 3-a. (Month 5) Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-b. (Month 6) Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so…
Cash 72000 Ending WIP 54000 Beginning WIP 85000 DM used 40000 DL used 61000 Factory overhead 50000 What will be the total manufacturing cost?Required to answer. Single choice.
Compute Profit or Loss from accepting special order. Direct Materials : $1.17 Direct Labor : $0.38 Variable Manufacturing Overhead : $2.16 Fixed Manufacturing Overhead : $2.00 Total Cost per unit : $5.71 Sales Price per unit $13.00 Special Order request : 1,700 copies for $7.00 Modifications for special order would cost approximately $380.00 Profit or loss would Increase/Decrease by how much?
QUESTION 4 An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeksMaximum delivery time: 3.5 weeksNormal usage: 52 000 units per yearPurchase price per unit: R8.50Cost of placing an order: R18.00Interest rate: 2% per yearStoring cost per unit: R2.50 Required: Calculate the EOQ. Calculate the re-order point if the organisation does not keep safety stock.
eBook Question Content Area Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to continue its custom embroidery service. All of the company’s direct fixed costs can be avoided if a segment is dropped. The information is available for the segments. CustomEmbroidery LogoApparel Sales $60,000 $250,000 Variable costs 29,000 110,000 Contribution margin $31,000 $140,000 Direct fixed costs 22,000 39,000 Allocated common fixed costs 13,000 49,000 Net income $(4,000) $52,000 A. What will be the impact on net income if the embroidery segment is dropped? Net income $fill in the blank 1 B. Assume that if the embroidery segment is dropped, apparel sales will increase 10%. What is the impact on the contribution margin and net income solely for the apparel? Contribution margin $fill in the blank 3 Net income $fill in the blank 5 C. Identify one cost that is…
SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…
(e) Product Blue Product Red £ £Selling £12.00 £24.00Variable cost £ 4.00 £ 8.00Contribution margin £ 8.00 £16.00Fixed costs apportioned £200,000 £400,000Budgeted Sales Units 140,000 60,000Required:Calculate the breakeven points, for each product and the company as a wholeand comment on your findings
I. PROBLEM SOLVINGAnswer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 4. Labor rate variance (LRV)5. Labor efficiency variance (LEV)6. Variable overhead (VOH) rate variance7. VOH efficiency variance8. Fixed overhead (FOH) spending variance9. FOH volume variance
I. PROBLEM SOLVINGAnswer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 1. Material purchase price variance (MPPV)2. Material price usage variance (MPUV)3. Material quantity variance (MQV)4. Labor rate variance (LRV)5. Labor efficiency variance (LEV)6. Variable overhead (VOH) rate variance7. VOH efficiency variance8. Fixed overhead (FOH)…
CD Only CD With Instructional Materials Estimated Demand 43,000 Units 43,000 Units Est. Sales Price $27.000 $54.00 Est. Cost per unit Dir. Materials $2.50 $2.75 Dir. Labor $3.00 $6.00 Var. Manufacturing OH $3.00 $6.25 Fixed Man. OH $3.00 $3.00 Unit Man. Cost $11.50 $18.00 Additional Development Cost $125,000 Based on the given data, compute the increase or decrease in profit that would result if instructional materials were added to the CD's.…
f. Short-Term Product-Mix Decision DVD Production Company produces two basic types ofvideo games, Flash and Clash. Pertinent data for DVD Production Company follow:*Based on direct labor hours: 4 direct labor hours (DLHs) per unit of Flash and 2 DLHs perunit of Clash.Flash ClashSales price $250 $140CostsDirect materials 50 25Direct labor (@ $25/hr.) 100 50Variable factory overhead* 50 25Fixed factory overhead* 20 10Marketing costs (all fixed) 10 10Total costs $230 $120Operating profit $ 20 $ 20The DVD game craze is at its height so that either Flash or Clash alone can be sold to keep the plantoperating at full capacity. However, labor capacity in the plant is insufficient to meet the combineddemand for both games. Flash and Clash are processed through the same production departments.Required1. What is the meaning and importance of the statement that “Flash and Clash are processed through thesame production departments”?

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