Selling and administrative 10.00 If the company used the variable (direct) costing method, the operating income would be P2,100,000 P4,000,000 P2,480,000 P3,040,000

Q: Medieval, Inc. reports the following information for its first year of operations:…

A: Under absorption costing, the cost per unit is calculated as cost of goods sold per unit.

Q: Snyder Company produced 90,000 units during its first year of operations and sold 86,100 at $19.92…

A: Absorption costing allocates fixed overhead costs across all units produced for the period. Variable…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Definition:   Absorption costing: It refers to the method of product costing in which the price of…

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: Fixed overhead cost per unit = $572,000 / 44,000 units = $13

Q: JYD Corporation produces three products. The production and cost data show the following:   Product…

A: solution : let us first note the total overhead cost Setups  $          450,000 Shipping…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Finished goods inventory: Finished goods inventory are those goods that is completely ready for sale…

Q: Caren corp produces 85,600 units for the year and sold 81,750 units at P22.30 per unit. Its…

A: Cost of goods manufactured for the year: =Direct Materials + Direct Labor +Manufacturing overhead…

Q: During January, DAC Inc. produced 5,000 units of product with costs as follows:   Direct materials…

A: Variable Costing Method: The variable costing method is a type of costing method where the cost of…

Q: Assume the following information appears in the standard cost card for a business that makes only…

A: Labor spending variance = Actual labor cost - Standard labor cost

Q: Easton Pump Company's planned production for the year just ended was 19,100 units. This production…

A: ●1. Answer: Production cost per unit under variable costing method= (Direct material+ Direct labor+…

Q: The Normal Corporation accounts for the cost of its single product using a standard cost approach.…

A: Standard hours for actual production = (8000*8) + (1000*50%*8) = 68000 hours Actual labor hours =…

Q: Lane Company produced 50,000 units during its first year of operations and sold 47,300 at $12 per…

A: Under Variable Costing the costs directly associated with the product i.e. direct materials, direct…

Q: Sicily Company reported the following actual cost data for the year:  purchase of raw materials (all…

A: a. Following are the calculation of cost of goods manufactured:

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: In variable costing income statement, the contribution margin is determined by first subtracting the…

Q: Exemplar company reported the following information for its first year of operations. Units produced…

A: Absorption costing is the method for accounting of costs in which all the costs associated with…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Definition:   Variable costing: It refers to the method of product costing in which the price of the…

Q: Gage Company reports the following information for its first year of operations: Unit produced this…

A: Total variable overhead is  Total output during the year * variable overhead cost per unit.  Under…

Q: Namrac Company had sales of $3,500,000 for the year.  Some additional information is as follows:…

A: Given information: Beginning balance not available Direct material: $300,000 Direct labor: $240000…

Q: Lyon Productions manufactures two products, Chevalier and Dame. Estimates for the company’s products…

A: Under Activity based costing, overhead costs are allocated to products on the basis of cost drivers…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Fixed manufacturing overhead cost per unit  = Total Fixed manufacturing overhead / Total no. of…

Q: ozier Company produced and sold 1,000 units during its first month of operations. It reported the…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: In variable costing, only the variable cost is taken into consideration while computing the value of…

Q: Dozier Company produced and sold 1,000 units during its first month of operations. It reported the…

A: The cost can be classified into two categories direct or indirect cost. The direct cost is those…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: Fixed overhead per unit = total Fixed overhead/units produced = $390000/39000 units = $10 per unit

Q: The Homer Corporation produces two products, and reports the following production and cost…

A: Here in this question, we are are required to calculate activity rate set up activity. Activity rate…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Definition:   Variable costing: It refers to the method of product costing in which the price of the…

Q: nyder Company produced 90,000 units during its first year of operations and sold 86,100 at $19.92…

A: Answer 1) Calculation of Unit Cost under Absorption Costing Unit Cost = (Direct materials + Direct…

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…

A: Unit product cost = Direct materials + Direct labor + Variable manufacturing overhead = $10 + $25 +…

Q: A Company produced 80,900 units during its first year of operations and sold 77,100 at 21.60 per…

A: Calculation of unit cost=Cost of goods manufactured [COGS]  / Number of units produced Cost of…

Q: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing…

A: The absorption costing includes both variable and fixed cost whereas variable costing includes only…

Q: t the end of the first year of operations, 6,400 units remained in the finished goods inventory. The…

A: Workings:

Q: Exemplar company reported the following information for its first year of operations. Units produced…

A: Cost per unit = Direct materials + direct labor + variable overhead + (Fixed overhead / Units…

Q: Goroka Factory provided the following information for the last calendar year, Beginning inventory…

A: Hey, since there are multiple sub-part questions posted, we will answer the first three questions.…

Q: [The following information applies to the questions displayed below.]   Cool Sky reports the…

A: Absorption costing is a costing technique in which management of company consider all variable and…

Q: The JKL INC. produced 100,000 units of Product X during the month of September: Costs incurred…

A: We know that, Per unit cost as per Variable costing method is -  Direct material + direct labor +…

Q: Classy company which uses absorption costing, produced 1,000 units of a production first year of…

A: Absorption costing and variable costing are two forms of costing techniques that are being used in…

Q: At the end of the first year of operations, 5,600 units remained in the finished goods inventory.…

A: Calculate the finished goods inventory under absorption costing: Direct material $29.10 Direct…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: Fixed overhead per unit = total Fixed overhead/units produced = $240000/30000 units = $8 per unit

Q: Process costing can be performed with estimated cost and production data and actual cost and…

A: If the manufacturing overhead cost applied to work in process is less than the manufacturing…

Q: Sicily Company reported the following actual cost data for the year:  purchase of raw materials (all…

A: Manufacturing overheads  All the indirect cost which is incurred while the production of goods is…

Q: The accounting records for Moss Manufacturing Company included the following cost information…

A: As per the variable costing system, all the variable costs excluding sales and administrative…

Q: Anna Corporation provided the following information about their product: Cost per unit: Direct…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Trio Company reports the following information for the current year, which is its first year of…

A: Under Absorption costing, Fixed overhead is considered as a product cost and therefore added to the…

Q: Snyder Company produced 90,000 units during its first year of operations and sold 87,000 at $21.80…

A: Under absorption costing method, all the fixed and variable costs are to be considered to finds unit…

Q: The following data relate to the Blue Devil Corp. in February: Material inventories:   Beginning…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: Ross Corporation manufactures and sells one product. The following information pertains to the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The following is taken from Jeddah Company's records for the current year: Direct materials used…

A: Inventoriable cost under variable costing = Cost of Direct materials used + Direct labor + Variable…

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.