On January 1, 2016, Omega Company has 16,000 units in its beginning inventory. During the year, the company’s variable production costs were P6 per unit and its fixed overhead costs were P4 per unit. The company’s net income for the year was P24,000 higher under absorption costing than it was under direct costing. Given these facts, the number of units of product in the ending inventory on December 31, 2016, must have been?

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

A: Unit costs include all manufacturing fixed and variable cost. Variable costs are flexible as per…

Q: During the first month of operations ended June 30, 2016, Lucky Inc., has no beginning inventory and…

A: As the unit sales in proposal 2 are 25,000 units but it can't exceed the 20,000 unit sales,…

Q: During January 2020, ABC company produced 1,000 units of product Z with the following costs:…

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

Q: On January 1, 2016, LABRYNTH Co. purchased 50,000 units at $10 per unit. During 2016, the entity…

A: Net income of the business means deduction of all expenses from the sales revenue. All expenses…

Q: Golden Eagle Company began operations in 2014 by selling a single product. Data on purchases and…

A: Under periodic system of inventory, closing inventory is valued and the balance purchase cost is…

Q: Golden Eagle Company began operations in 2014 by selling a single product. Data on purchases and…

A: Inventory refers to the amount of goods which are available for sale and the raw materials which are…

Q: LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240…

A:

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

A: Product cost includes all the variable manufacturing expenses such as direct expenses, direct labor,…

Q: Scenic Company had 11,500 units in its ending inventory on December 31, 2019. During 2019, the…

A: Net operating income under absorption costing = Net operating income under variable costing +…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 26,160 units and sold…

A: Selling price per unit = $971,850 / 20,900 units = $46.50   Variable cost per unit = [($188,352 +…

Q: Rojo Inc.’s production (during October 2010) was: • 53,600 equivalent units for direct material; •…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: Georgio Corporation has the following data as of December 31, 2021. Product C Product D Units…

A: Inventory  refers to all the goods  and material  sold by the market to earn a profit.

Q: Scott Manufacturing makes only one product with total unit manufacturing costs of $59, of which $41…

A: Under variable costing, fixed cost is applied completely but in absorption costing, fixed cost is…

Q: ​Circetrax, Inc. has provided the following financial information for the​ year:   Finished Goods​…

A: Under the absorption costing, fixed manufacturing overhead is considered as a product cost and…

Q: Fagan Manufacturing uses an absorption costing system. In 2009 it manufactured 25,000 units and sold…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: Dorothy Products sells its products for $40 per unit. Additional data for the month of April, 2014,…

A: Fixed manufacturing overhead per unit = Fixed manufacturing overhead / Units produced = $20000/10000…

Q: Cavy Company completed 7,770 units during the year at a cost of $590,520. The beginning finished…

A: solution given Number of completed unit 7770 Cost incurred $590520 Opening inventory…

Q: LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Answer -    Particulars Year 1 2 3         Difference in Operating Income 10800 32000 0…

Q: A company reports the following information for the current year: Units Produced (25,000)< Units…

A: Under absorption  costing  FOH is absorbed on units produced  during  year

Q: LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240…

A: Under absorption costing, Fixed manufacturing overheads are treated as a part of the product cost.…

Q: Expert Manufacturing reported the following: Revenue Beginning inventory of direct materials,…

A: Cost of goods sold is the total cost incurred to produce goods during the particular year. It is…

Q: QP Corp. sold 4,000 units of its product at $50 per unit in year 2015 and incurred operating…

A: The corporation identify different cost of goods sold (COGS) incurred on goods being sold through…

Q: Walsh Company manufactured 30,000 units during July. There were no units in inventory on July 1.…

A: Under variable costing, manufactured units, closing and starting units are not considered entire…

Q: LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Fixed cost per unit=Total fixed manufacturing costProduction (Year 2)=$72,000920=$78.260869565

Q: During the most recent year, ABC Company reported the following data. During the year 10,000 units…

A: Under absorption costing fixed overhead costs are allocated to each unit of product produced during…

Q: Sprint Shoes Inc. had a beginning inventory of 9,250 units on January 1, 20X1. The costs associated…

A: LIFO, last in last out is method for accounting  inventory. under LIFO method,cost of most recent…

Q: DEF Company produces a single product. For the most recent year, the company's net operating income…

A: There are two types of costing methods.

Q: During July 2014, Leesburg, Inc., sold 250 units of its product Empire for $4,000. The following…

A: Inventory: Inventory is the goods and material a business holds for sale. There are two methods for…

Q: JKL Company produces a single product. At the end of last year, the company had 30,000 units in its…

A: The difference in units is shown below, Difference in Units = Difference in Net incomeFixed…

Q: For 2020, Roberts Ltd., had sales of 150,000 units and production of 210,000 units. Other…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $8, then…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Fixed manufacturing cost per unit = Total Fixed manufacturing cost  / Total production = $72,000 /…

Q: In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $ 8, then…

A:

Q: Revenues in 2017 were $550,000 The selling price per unit and the purchase price per pound of direct…

A: The cost of goods manufactured includes the total costs incurred in manufacturing the goods. The…

Q: Cavy Company completed 10,510 units during the year at a cost of $746,210. The beginning finished…

A:

Q: LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240…

A:

Q: pls show solutions Last year, Harris Company manufactured 17,000 units and sold 13,000 units.…

A: There are two costing methods which are, (1) Variable costing method (2) Absorption costing method…

Q: Data concerning Dakota Enterprises' operations last year appear below: Units in the Beginning…

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

Q: (b) For 2018, SQU Company had sales of 150,000 units and production of 200,000 units. There was no…

A: Direct material cost per unit=Direct material costProduction units =150,000200,000=0.94 per unit…

Q: Sprint Shoes Inc. had a beginning inventory of 9,700 units on January 1, 20X1. The costs associated…

A: The inventory valuation is based on the flow of inventory. The LIFO method says that recently…

Q: Scott Manufacturing makes only one product with total unit manufacturing costs of $57, of which $39…

A: Solution:- Calculation of gross profit computations for 2015 and 2016 using absorption costing as…

Q: Fagan Manufacturing uses an absorption costing system. In 2009 it manufactured 25,000 units and sold…

A: Absorption costing is a method of costing in which fixed overhead costs is allocated to a product…

Q: In its first month of operation, Waterway Industries purchased 340 units of inventory for $9, then…

A: Given data: Days Purchase units Rate Total 1 340 $9 $3,060 2 440 $10 $4,400 3 380 $11…

Q: The following information for Quadrado Corporation relates to the three-month period ending…

A: Formula: Gross profit = Sales - cost of goods sold

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold…

A: Ending inventory units = Total units produced - units sold = 27,120 units - 21,800 units = 5,320…

Q: Wiremold tracks the direct materials in inventory. At the end of their most recent month, the direct…

A: Raw material inventory      920000 x 7/20 =   322000 WIP  raw material.   920000x2/20. = 92000 Cost…

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.