Problem B. The following data were taken from records of CS Drinks Company for the years ending Year 1 and year 2 In units Year 1 Year 2 Inventory, beginning Production 7,000 20,000 18,000 Available for sale 20,000 13,000 25,000 23,000 Units sold Inventory ending Sale (P20 per unit) 7,000 P260,000 2,000 P460,000 Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing cost Selling and administrative (60% fixed, 40% variable) 150,000 135,000 50,000 54,000 45,000 75,000 Instructions: 5. Determine the net income under absorption costing for Year 1. 6. Determine the net income under absorption costing for Year 2. 7. Determine the net income under variable costing for Year 1.

Problem B. The following data were taken from records of CS Drinks Company for the years ending Year 1 and year 2 In units Year 1 Year 2 Inventory, beginning Production 7,000 20,000 18,000 Available for sale 20,000 13,000 25,000 23,000 Units sold Inventory ending Sale (P20 per unit) 7,000 P260,000 2,000 P460,000 Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing cost Selling and administrative (60% fixed, 40% variable) 150,000 135,000 50,000 54,000 45,000 75,000 Instructions: 5. Determine the net income under absorption costing for Year 1. 6. Determine the net income under absorption costing for Year 2. 7. Determine the net income under variable costing for Year 1.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 18MCQ: 2-18 Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year,...

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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.
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 =…
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.
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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
Question One God-Is-Good Company produces a single product, the following figures were extracted from their records for the year ended December 31, 2020. Units in beginning inventory:direct material (1,000 units) - GH¢30.00: direct labour. - GH¢65.00 variable overhead. - GH¢35.00 Fixed overheard. - GH¢32.00 Units produced. - 12,500 units units sold(10,000 units) - GH¢425.00 per unit. Variable costs per unit: Direct materials - GH¢50.00 Direct Labour. - GH¢100.00 Variable Overheard. - GH¢60.00 Fixed overheard per unit produced. - GH¢25.00 General and administrative cost (60% variable). - 525,350.00 Selling and distribution cost(40% fixed) - 315,500.00 a. Prepare an Income Statement for God-Is-Good Company using the full costing approach. b. Prepare an Income Statement for God-Is-Good Company using variable costing approach. c. Prepare the…