JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit P636,400 Variable costs per unit: Fixed costs: Direct materials P12 Factory overhead P176,000 Direct labor 32 Selling & administrative 8,600 Factory overhead 2 Selling & administrative 6 There are 200 units of inventory remaining at the end of April.

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

A: Product cost is the cost incurred on the production or making of a product. It is the cost that…

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

A: Explanation: Cost per unit = Direct materials + Direct labor + Variable manufacturing overhead +…

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: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Formulas:

Q: Columbia Products produced and sold 1,400 units of the company’s only product in March. You have…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: f 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported…

A: Solution : Amount of inventory shown in balance sheet =(Computation  of variable cost per unit *…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: As per the absorption costing system, product cost includes both fixed and variable expenses.

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

A: The gross margin is determined by subtracting the expenses from the sales price.

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

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Variable cost per unit produced = Direct materials+ Direct labor + Variable manufacturing cost per…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: In variable income statement all the variable manufacturing expenses are considered as the product…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Under the variable costing, fixed manufacturing overhead cost is considered as a period cost.…

Q: Last​ year, Adara Company produced 5,000units and sold 3,000 units. The company had no beginning…

A: Definition:   Variable costing: It refers to the method of product costing in which the price of…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Variable costing: Variable costing is a concept of managerial costing. Income under variable costing…

Q: Everlasting Co. has the following data pertaining to its 1st quarter of operations: Activity level -…

A: There are two type of costing system which are followed by the entity which are, (1) Variable…

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

A: SOLUTION- VARIABLE COST  IS A CORPORATE EXPENSES THAT CHANGE IN PROPORTION TO HOW MUCH A COMPANY…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Product costs are those cost which are incurred in creating the product. So, Unit Product cost for…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: The cost can be classified into two categories i.e. product cost and period cost. The product cost…

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

A: Variable costing is a method of costing under which all variable costs are part of product costs.

Q: The company, which has only one product, has provided the following data concerning its most recent…

A: Under variable costing, the product costs only include direct material, direct labor, and variable…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: The period cost is that cost that can not be capitalized like fixed manufacturing overhead, selling…

Q: What is the net operating income for the month under variable costing?

A: Here is the calculation of operating income for the month under variable costing method: -

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

A: Absorption costing: It is a costing method that include all production costs, fixed and variable…

Q: At the end of January, ABC firm had 3,400 units in ending inventory with a total cost of $19,040.…

A: The Income Statement seems to be a financial statement that really indicates a company's earnings…

Q: Amex Company, which has woolen scarves to produce, has provided the following data  concerning its…

A: Under absorption costing, gross profit is calculated as difference between sales and cost of goods…

Q: Amex Company, which has woolen scarves to produce, has provided the following data  concerning its…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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

A: The following data is related to Maher Corporation for the month as per the given information.

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

A: A variable cost is an expense that changes in proportion to how much a company production output or…

Q: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what…

A: Variable costing income statement is the statement in which the cost of goods which has been sold by…

Q: Chris Company produced and sold 1,000 units during its first month of the following cost and…

A: Ans. Selling and Administrative costs are not allocated to the product cost.

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Under variable costing method, the variable manufacturing cost is considered as product cost and…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Variable costing is a cost accounting and management concept that deducts fixed manufacturing…

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

A: Variable Costing is a method of cost allocation in which only variable direct costs are assigned as…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Ending Inventory = Number of Units in Ending Inventory x Cost per Unit Cost per Unit under Variable…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Selling price= $117 Units in beginning inventory 0 Units produced 2,900 Units sold 2,500 Units in…

Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

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

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

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…

A: No. of units sold = sales / sales price per unit = 636400/74 = 8600 units Total units produced = No.…

Q: Columbia Products produced and sold 1,400 units of the company’s only product in March. You have…

A: Contribution margin per unit = Sales price per unit - Variable cost per unit

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Under variable costing system, the inventory would consist of only variable expenses.

Q: The contribution margin per unit was:

A: Contribution margin per unit = Sales price per unit - Variable cost per unit

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Variable costing is a method under which the direct costs are included which varies according to the…

Q: The total contribution margin for the month under variable costing is:

A: Contribution margin can be defined as the difference between the sale price of the goods and the…

Q: Chris Company produced and sold 1,000 units during its first month of operations. It reported the…

A: The question is based on the concept of Cost Accounting.

Q: Zeklen Company had the following data for the month:   ​ Variable costs per unit: ​ Direct…

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

Q: A manufacturing company that produces a single product has provided the following data concerning i…

A: Operating income is the excess of revenue over the product costs and period costs. Product cost…

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

A: Period cost can be defined as any expenses that are not directly associated to product manufacturing…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.