In June 2019, Juggle Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.The sale price was $54 per jar. Variable costs were $20 per case ($16 manufacturing and $4 selling & administrative) and total fixed costs were $90,000 ($70,000 manufacturing and$20,000 selling & administrative).The company had no beginning inventory. Required:a) Calculate the following for Juggle Adei) The total cost per unitii) The value of ending inventories using marginal costingiii) The value of ending inventories using total costing b) Prepare the June income statement for Juggle Ade using variable costing, clearlyshowing contribution and the components of total fixed costs.
In June 2019, Juggle Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.The sale price was $54 per jar. Variable costs were $20 per case ($16 manufacturing and $4 selling & administrative) and total fixed costs were $90,000 ($70,000 manufacturing and$20,000 selling & administrative).The company had no beginning inventory. Required:a) Calculate the following for Juggle Adei) The total cost per unitii) The value of ending inventories using marginal costingiii) The value of ending inventories using total costing b) Prepare the June income statement for Juggle Ade using variable costing, clearlyshowing contribution and the components of total fixed costs.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...
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In June 2019, Juggle Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.
The sale price was $54 per jar. Variable costs were $20 per case ($16 manufacturing and $4 selling & administrative) and total fixed costs were $90,000 ($70,000 manufacturing and$20,000 selling & administrative).
The company had no beginning inventory.
Required:
a) Calculate the following for Juggle Ade
i) The total cost per unit
ii) The value of ending inventories using marginal costing
iii) The value of ending inventories using total costing
b) Prepare the June income statement for Juggle Ade using variable costing, clearly
showing contribution and the components of total fixed costs.
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