Pennell Company gathered the following information for the year ended December 31, 2008: Fixed costs: Manufacturing Marketing Administrative $180,000 55,000 25,000 Variable costs: Manufacturing Marketing $112,500 37,500 Administrative 45,000 During the year, Pennell produced and sold 75,000 units of product at a sale price of $6.60 per unit. There was no beginning inventory of product on January 1, 2008. Required: a) Prepare Contribution Margin Income Statement. b) Compute BEP (in units and TL) c) Compute Operating Leverage 2.

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: The VArfull Company presented the following data for 2007 and 2008 Standard costs per unit Direct…

A:

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

A: Under variable costing all variable costs are assigned to a product and fixed overhead costs are not…

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

A:

Q: total contribution margin

A: We know that as per the marginal costing technique  Sales revenue - Variable cost - Fixed cost =…

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

A: Unit product cost (variable costing) = Direct materials + Direct labor + Variable manufacturing…

Q: Pennell Company gathered the following information for the year ended December 31, 2018. During the…

A: Sales: It is an economic activity. Under this, one party sell its goods or services to another…

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

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

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 condensed income statement by product line for Warrick Beverage Inc. indicated the following for…

A: Variable cost of goods sold = Total cost of goods sold x 30% = $10,800,000*30%  = $3,240000 Variable…

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

A: Under absorption costing, Variable selling and administrative expense and Fixed selling and…

Q: Marley Company has the following information for March: Sales $912,000 Variable cost of goods sold…

A:

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

A:

Q: Leigh Company, which has only one product, reported the following results for January: Selling…

A: Absorption costing is also known as Traditional costing:

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

A: Solution.. Units sold  = Total sales revenue ÷ selling price per unit  = P636,400 ÷ P74 per unit  =…

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: Under variable costing, the value of the inventory is:

A: Option D is correct.

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

A:

Q: The following data have been taken from the records of a company: 200,000 Production in units during…

A: Variable Costing - In this costing method, variable costs are considered while preparing the cost of…

Q: Mandato Corporation has provided the following data for its two most recent years of operation:…

A: Fixed manufacturing overhead per unit = Fixed manufacturing overhead  / no. of units produced =…

Q: Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for…

A: Following are the calculation of ending inventory under variable coting:

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

A: SOLUTION- FORMULA- 1-CONTRIBUTION MARGIN =  SALES - VARIABLE COST. 2-GROSS MARGIN = SALES - COGS .…

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

A: Variable costing only includes theproduct costs that vary with output. It doesnt include the fixed…

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

A: Variable product cost includes all the variable expenses such as direct material, direct labor, and…

Q: Amanufacturing company that produces a single product has provided the following data related to its…

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

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

A: Total variable cost = Direct materials + Direct labor + Variable manufacturing overhead  + Variable…

Q: On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,600 units and…

A: Variable Costing and Absorption Costing - Absorption Costing includes all the costs associated with…

Q: CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price…

A: Calculation of number of sale units: Answer: Number of sale units that will earn a net income of…

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

A: Unit product cost for the month = Direct materials + Direct labor + Variable manufacturing overhead

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: Marley Company has the following information for March: Sales $912,000 Variable cost of goods sold…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

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: The contribution format income statement of Goma Corporation follows: Goma Corporation Income…

A: Using absorption costing, the product cost comprises of the variable cost and fixed cost. The net…

Q: Neef Corporation has provided the following data for its two most recent years of operation: Selling…

A: In order to compute the net operating income, all the variables, as well as fixed expenditures, are…

Q: In the previous year, a company’s total fixed manufacturing overhead costs were P13,600 and its…

A: Lower in operating income using variable costing versus absorption costing = Increase in ending…

Q: A. Determine the income (loss) before income taxes for the year 2011 under Absorption Costing?

A:

Q: Pacific Inc. has provided the following data for the latest quarter of the most recent year: Sales…

A: The following computations are done for Pacific Incorporation.

Q: Aspen Popular Company prepared the following absorption-costing income statement for the year ended…

A: Fixed Manufacturing overhead cost per Unit : Cost of Goods sold Per unit = 108,000/8,000 = $ 13.50…

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: Pacific Inc. has provided the following data for the latest quarter of the most recent year:…

A: CVP analysis is considered as a decision-making tool that helps management to make strategies and…

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.