Problem B. The following data were taken from records of C5 Drinks Company for the years ending Year1 and year 2In unitsYear 1Year 2Inventory, beginning7,00020,00020,00013,0007,000Production18,000Available for sale25,00023,0002,000Units soldInventory endingSale (P20 per unit)P260,000P460,000Variable Manufacturing cost (P7.50 per unit)Fixed Manufacturing costSelling and administrative (60% fixed, 40% variable)150,000135,00050,00054,00045,00075,0008. Determine the net income under variable costing for Year 2.

Variable selling and administrative expense for year 2 = total selling and administrative expense x…

Answered: Problem B. The following data were…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of 3,000,000. The beginning finished goods inventory was 25,000 units at 310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
The following information was extracted from The Cape Adventures T&T Pvt Ltd. The company manufactures a single product. The particulars for February 2023 are as follows: Units manufactured and sold 18 750. Selling price per unit R 100 Manufacturing cost: – Variable R468 750 – Fixed R187 500 Selling and administrative cost: – Variable selling cost (R5,00 per unit) R 93 750 – Fixed selling cost R 50 000 – Fixed administration cost R 12 500 Required: Draft the statement of comprehensive income for the month ended 28 February 2023 according to the: i. direct costing method ii. absorption costing method.
Duo Ltd makes and sells one product, the Alpha. The following information is available for period 3:Alpha Production (units) 2,500 Sales (units) 2,300 Opening inventory (units) 0 Financial data: Alpha (K)Unit selling price 90Unit cost(s):Direct materials 15Direct labour 18Variable production overheads 12Fixed production overheads 30Variable selling overheads 1Fixed production overheads for the period were K52,500 and fixed administration overheads were K13,500. Prepare a statement of profit or loss for period 3 based on:(a) Marginal costing principles.(b) Absorption costing principles.
Precious Products Ltd.Income StatementFor the year ended xxxxSales.................................................................... $______Cost of goods sold:Finished goods inventory, beginning.................... $ ______Add: Cost of goods manufactured ....................... ______Goods available for sale...................................... ______Deduct: Finished goods inventory, ending............ ______ ______Gross margin........................................................ ______Selling and administrative expenses:Selling expenses................................................. ______Administrative expenses ..................................... ______ ______Operating income ................................................. $ , .3. Direct labour: $______÷ 10,000 units = $______per unit.Insurance: $______÷ 10,000 units = $______per unit.4. Direct materials:Unit cost: $: $______÷ 10,000 units = $______per unit.Total cost: ______units × $______ per unit =…
Objective 3 - Define tangible and intangible products, and explain why thereare different product cost definttions., 4 - Prepare income statements formanufacturing and service organizations.Ellerson Company provided the following information for the last calendaryear.Beginning inventory:Direct materials $68,000Work in process 29,400Finished goods 43,200Ending inventory:Direct materials $70,400Work in process 40,000Finished goods 42,100During the year, direct materials purchases amounted to $278,000, directlabor cost was S189,000, and overhead cost was $523,000. During the year,100,000 units were completed.Required:1, Calculate the total cost of direct materials used in production.2. Calculate the cost of goods manufactured. Calculate the unit manufacturingcost.3. Of the unit manufacturing cost calculated in Requirement 2, $2. 70 is directmaterials and S5.30 is overhead. What is the prime cost per unit? Conversioncost per unit?
Q#-1 HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 370 per unit’s information related to the current year activities follows Variable cost per unit Direct material 40 Direct labor 74 Manufacturing overhead 96 Annual fixed cost Manufacturing cost 1,200,000 Selling and administrative 1,720,000 Sales and production Sales in units 20,000 Production 24,000 Required - Cost of the December 31 finished goods inventory Net income for the current year Dec 31 If next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on • The direct labor cost of 74 per units? why? • The fixed manufacturing overhead of 1,200,000? why? • The fixed selling and administrative cost of1,7200,000? why? • Per unit cost production why?
Year 1 financial data for the ABC Company is as follows:Sales $5,000,000 ,Direct materials 850,000 ,Direct manufacturing labor 1,700,000 ,Variable manufacturing overhead 400,000 ,Fixed manufacturing overhead 750,000 ,Variable SG&A 150,000 ,Fixed SG&A 250,000 ,Under the absorption method, Year 1 Cost of Goods sold will be: a. $2,550,000 b. $3,100,000 c. $2,950,000 d. $3,700,000
4.The following were taken from accounting records of Bella Company in December 2020.Prime cost, P301,000Gross profit rate on sales, 20%Cost of goods available for sale, P460,000Direct materials purchased, P170,000Work in process, December 1, 2020, P34,000Direct Materials, December 1, 2020, P16,000Finished goods, December 1, 2020, P30,000Factory overhead, 40% of conversion cost.Sales, P500,000Direct labor, P180,000Compute for December 31, 2020: (1) Direct materials inventory; (2) Work in process inventory; (3) Finished goodsinventory: A.(1) P6,000 ; (2) P25,400 ; (3) P30,000B. (1) P49,000 ; (2) P25,000 ; (3) P30,000C. (1) P65,000 ; (2) P25,400 ; (3) P60,000D. (1) P65,000 ; (2) P25,000 ; (3) P60,000
Q1) A company has the following accounts’ balances at the end of the year: Building (Net) 20 year life left $ 4,000,000. The replacement cost for the Building is 4,500,000 USD. Inventory 40,000 unit at $20 each with a replacement cost $22. And cost of goods sold of $500,000 with a replacement cost of 520,000. Required: Indicate how the above information would affect the financial statements of the company when adopting the current cost accounting model. You need to determine the realized and unrealized profit.
Joint products A, B and C are produced by JNT Corp. For the month just ended, these data are available: Using the market value method, the joint cost apportioned to each product will be: A. A – P22,652; B – P13,843; C – P13,335 B. A – P19,995; B – P19,014; C – P10,821 C. A – P22,440; B – P16,005; C – P11,385 D. A – P24,357; B – P14,885; C – P10,588

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