How do I complete the chart? Assignment2c. Selling and administrative expenses consist of the following.Selling and Administrative ExpensesVariable selling and administrative ($2.50 per unit sold)Fixed selling and administrativeTotalCheck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate compSalesLess: Variable expensesVariable cost of goods soldVariable selling and administrative expensesVariable cost of goods soldContribution marginLess: Fixed expensesIncome (Loss)Required:Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.)Fixed overheadFixed selling and administrative expensesFixed overheadWF2X Answer is complete but not entirely correct.DOWELL CompanyIncome Statements (Variable Costing)#320F3ES DS4QF4RLLX✓XYear 1$920,000(420,000)(840,000)(100,000)✓(50,000)✓470,000 X 940,000 X450,000900,000300,000120,000(420,000) X%5300,000120,000(420,000) X30,000 $ 520,000 XYear 2$1,840,000CF5TGPrevSaved< C6F6Year 1$ 50,000120,000$ 170,0001 of 1Y&7HYear 2$ 100,000120,000$ 220,000NextF7U* 08DIIF8I(9F9K0 O19 Assignment1intsMcGrawHillQNF1Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.Income Statements (Absorption Costing)Sales ($46 per unit)Cost of goods sold ($31 per unit)Gross profitSelling and administrative expensesIncomeAdditional Informationa. Sales and production data for these first two years follow.Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion.UnitsUnits producedUnits soldDirect materialsDirect laborVariable overheadFixed overhead ($300,000/30,000 units)Total product cost per unit2F2b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $31 per unit product cost usingabsorption costing consists of the following.Wc. Selling and administrative expenses consist of the following.Selling and Administrative ExpensesVariable selling and administrative ($2.50 per unit sold)Fixed selling and administrativeTotalRequired:#Year 130,00020,000380F3ES D$4ƠYear 230,00040,000F4RLL$59710$ 31Year 1$ 920,000620,000300,000170,000$ 130,000%5X CVF5T< PrevSavedG16Year 2$ 1,840,0001,240,000600,000220,000$ 380,000cF6YBYear 1$ 50,000120,000$ 170,0001 of 1&77HEYear 2$ 100,000120,000$ 220,000NextF7UN* 008DIIF81(9J KMF9O07F10L

The income statement records the revenues and expenses of the current period. It tells about the…

Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) Sales Less: Variable expenses X Answer is complete but not entirely correct. DOWELL Company Income Statements (Variable Costing) Variable cost of goods sold Variable selling and administrative expenses Variable cost of goods sold Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Fixed overhead Income (Loss) ✓ → (420,000) x ✓ ✓ Year 1 $920,000 ✓ X $ (50,000)✓ 470,000 X 450,000✔ 300,000✔ 120,000 ✓ (420,000) X Year 2 $1,840,000✔ (840,000) (100,000) 940,000 x 900,000✔ 300,000 120,000✔ (420,000) X 30,000 $ 520,000

Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) Sales Less: Variable expenses X Answer is complete but not entirely correct. DOWELL Company Income Statements (Variable Costing) Variable cost of goods sold Variable selling and administrative expenses Variable cost of goods sold Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Fixed overhead Income (Loss) ✓ → (420,000) x ✓ ✓ Year 1 $920,000 ✓ X $ (50,000)✓ 470,000 X 450,000✔ 300,000✔ 120,000 ✓ (420,000) X Year 2 $1,840,000✔ (840,000) (100,000) 940,000 x 900,000✔ 300,000 120,000✔ (420,000) X 30,000 $ 520,000

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Cost Behavior And Cost-volume-profit Analysis

Section: Chapter Questions

Problem 21.28EX: Appendix Absorption costing income statement On June 30, the end of the first month of operations,...

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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.
Construct and interpret a product profitability report, allocating selling and administrative expenses Naper Inc. manufactures power equipment. Naper has two primary productsgenerators and air compressors. The following report was prepared by the controller for Napers senior marketing management for the year ended December 31: Generators Air Compressors Total Revenue 4,200,000 3,000,000 7,200,000 Cost of goods sold 2,940,000 2,100,000 5,040,000 Gross profit 1,260,000 900,000 2,160,000 Selling and administrative expenses 610,000 Income from operations 1,550,000 The marketing management team was concerned that the selling and administrative expenses were not traced to the products. Marketing management believed that some products consumed larger amounts of selling and administrative expense than did other products. To verify this, the controller was asked to prepare a complete product profitability report, using activity-based costing. The controller determined that selling and administrative expenses consisted of two activities: sales order processing and post-sale customer service. The controller was able to determine the activity base and activity rate for each activity, as follows: Activity Activity Base Activity Rate Sales order processing Sales orders 65 per sales order Post-sale customer service Service requests 200 per customer service request The controller determined the following activity-base usage information about each product: Generators Air Compressors Number of sales orders 3,000 4,000 Number of service requests 225 550 A. Determine the activity cost of each product for sales order processing and post-sale customer service activities. B. Use the information in (A) to prepare a complete product profitability report dated for the year ended December 31. Compute the gross profit to sales and the income from operations to sales percentages for each product. (Round to two decimal places.) C. Interpret the product profitability report. How should management respond to the report?
Refer to Cornerstone Exercise 18.3. Required: 1. Calculate the cost of each unit using variable costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using variable costing? 3. Prepare a variable-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?
Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units that were manufactured during the period and 52,800 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are 14.70 per unit, and variable manufacturing costs are 30 per unit. Determine (A) whether variable costing operating income is less than or greater than absorption costing operating income, and (B) the difference in variable costing and absorption costing operating income.
To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
Cost of quality and value-added/non-value-added reports for a service company A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are 5,000,000. (Round percentages to one decimal place.) C. Prepare a value-added/non-value-added analysis. D. Interpret the information in (D) and (C).
Communication The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report. Home Theater Speakers Wireless Speakers Wireless Headphones Total Sales 1,500,000 1,200,000 900,000 3,600,000 Cost of goods sold 1,050,000 720,000 810,000 2,580,000 Gross profit 450,000 480,000 90,000 1,020,000 Marketing expenses 600,000 120,000 72,000 792,000 Income from operations (150,000) 360,000 18,000 228,000 In addition, the controller interviewed the vice president of marketing, who provided the following insight into the company's three products: The home theater speakers are an older product that is highly recognized in the marketplace. The wireless speakers are a new product that was just recently bunched. The wireless headphones are a new technology that has no competition in the marketplace, and it is hoped that they will become an important future addition to the companys product portfolio. Initial indications are that the product is well received by customers. The controller believes that the manufacturing costs for all three products are in line with expectations. Based on the information provided: 1. Calculate the ratio of gross profit to sales and the ratio of income from operations to sales for each product. 2. Write a brief (one page) memo using the product profitability report and the calculations in (1) to make recommendations to management with respect to strategies for the three products.