Pints produced with each batch 40 Selling price per batch 93.00 Variable materials per batch 35.70 Variable labor per batch 27.75 Variable Overhead per Batch 10.75 Variable selling expenses per batch Variable administrative expenses per batch 3.00 2.50 Sales salaries 40,000 Executive Salaries 110,000 Office Staff Salary 40,000 Office Occupancy 10,000 Fixed Factory Overhead 30,000 Leaf Peepers Ice Cream, Inc. Leaf Peepers Ice Cream, Inc. Contribution Income Statement - Projected Traditional Income Statement - Projected For the Year Ended December 31, 2021 For the Year Ended December 31, 2021 Sales Revenues Sales Revenues 1,729,800 Variable Costs Cost of Goods Sold 1,410,120 Materials Gross Profit 319,680 Labor Overhead Selling Expenses 95,800 Selling Administrative Expenses 206,500 Administrative Total Selling & Administrative Expenses 302,300 Total Variable Costs Net Operating Income $ 17,380 Contribution Margin Fixed Costs Pro Tip: When formatting your income statement Selling remember that it is just 1 schedule, despite any gaps that are formed for aesthetic purposes. Administrative Overhead Total Fixed Costs Net Operating Income

Pints produced with each batch 40 Selling price per batch 93.00 Variable materials per batch 35.70 Variable labor per batch 27.75 Variable Overhead per Batch 10.75 Variable selling expenses per batch Variable administrative expenses per batch 3.00 2.50 Sales salaries 40,000 Executive Salaries 110,000 Office Staff Salary 40,000 Office Occupancy 10,000 Fixed Factory Overhead 30,000 Leaf Peepers Ice Cream, Inc. Leaf Peepers Ice Cream, Inc. Contribution Income Statement - Projected Traditional Income Statement - Projected For the Year Ended December 31, 2021 For the Year Ended December 31, 2021 Sales Revenues Sales Revenues 1,729,800 Variable Costs Cost of Goods Sold 1,410,120 Materials Gross Profit 319,680 Labor Overhead Selling Expenses 95,800 Selling Administrative Expenses 206,500 Administrative Total Selling & Administrative Expenses 302,300 Total Variable Costs Net Operating Income $ 17,380 Contribution Margin Fixed Costs Pro Tip: When formatting your income statement Selling remember that it is just 1 schedule, despite any gaps that are formed for aesthetic purposes. Administrative Overhead Total Fixed Costs Net Operating Income

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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Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900
A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the rate of 100% of the direct labor cost. What is the value of the Inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1.000 units were in ending inventory? A. $1,000 B. $13,000 C. $130.000 D. $20.000
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Refer to Exercise 8.27. At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were: Required: Prepare a performance report for the period. In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items: Required: 1. Prepare an overhead budget for the expected activity level for the coming year. 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products) and a budget for production that is 20 percent lower than expected.
Appendix Absorption costing income statement On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable existing concept: Sales (420,000 units) 7,450,000 Variable cost of goods sold: Variable cost of goods manufactured (500,000 units x 14 per unit) 7,000,000 Less ending inventory (80,000 units x 14 per unit) 1,120,000 Variable cost of goods sold 5,880,000 Manufacturing margin 1,570,000 Variable selling and administrative expenses 80,000 Contribution margin 1,490,000 Fixed costs: Fixed manufacturing costs 160,000 Fixed selling and administrative expenses 75,000 235,000 Income from operations 1,255,000 a. Prepare an absorption costing income statement. b. Reconcile the variable costing income from operations of 1,255,000 with the absorption costing income from operations determined in (a).
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Sales (17,500 units) $1,750,000 Production costs (23,000 units): Direct materials $851,000 Direct labor 409,400 Variable factory overhead 204,700 Fixed factory overhead 135,700 1,600,800 Selling and administrative expenses: Variable selling and administrative expenses $248,100 Fixed selling and administrative expenses 96,000 344,100 If required, round interim per-unit calculations to the nearest cent. *** I only need assistance with the ones that are blank. Could you also leave the steps on how to solve it, please? a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales $1750000 Cost of goods sold Gross profit $ Selling and administrative expenses 344100 Income from operations $ b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc.…
1.The following costs were incurred in May: Direct materials $ 43,100 Direct labor $ 24,800 Manufacturing overhead $ 18,100 Selling expenses $ 20,300 Administrative expense $ 28,700 Prime costs during the month totaled? 2. Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 5.25 Direct labor $ 3.90 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 7200 Sales commissions $ 1.80 Variable administrative expense $ 0.30 Fixed selling and administrative expense $ 6600 If 4500 units are sold, the variable cost per unit sold is closest to:
5.A business operated at 100% of capacity during its first month, with the following results: Sales (112 units) $560,000 Production costs (140 units): Direct materials $70,000 Direct labor 17,500 Variable factory overhead 31,500 Fixed factory overhead 28,000 147,000 Operating expenses: Variable operating expenses $6,120 Fixed operating expenses 3,230 9,350 The amount of operating income that would be reported on the variable costing income statement is a.$427,450 b.$458,680 c.$559,860 d.$550,650
pls show solutions Last year, Harris Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were asfollows: Direct materials P153,000Direct labor P110,500Variable manufacturing overhead P204,000Fixed manufacturing overhead 255,000 Sales were P780,000 for the year, variable selling and administrative expenses were P88,400, and fixed selling and administrative expenses were P170,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year wouldbe?