Shazam Company had 16,000 units in its beginning inventory. During the year, the company’s variable production costs were P6 per unit and fixed manufacturing overhead costs were P4 per unit. The company’s net income for the year was P24,000 lower under absorption costing than it was under variable costing. How many units does the company have in its ending inventory? Select one: a. 10,000 units b. 4,000 units c. 6,000 units d. 22,000 units

Q: Farris Corporation, which has only one product, has provided the following data concerning its most…

A: Under variable costing all variable costs are assigned to a product and fixed overhead costs are not…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 30,140 units and sold…

A: Contribution Margin - When we deduct variable cost of the product from the net sales , then the…

Q: During the year, FITA Corporation produced 500 units of new products. The new product’s variable and…

A: Absorption costing: It is one of the managerial accounting methods under which all the costs that…

Q: Farris Corporation, which has only one product, has provided the following data concerning its most…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Pennell Company gathered the following information for the year ended December 31, 2018. During the…

A: Sales: It is an economic activity. Under this, one party sell its goods or services to another…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A:

Q: Baughn Corporation, which has only one product, has provided the following data concerning its most…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Answer -    Particulars Year 1 2 3         Difference in Operating Income 10800 32000 0…

Q: The following information pertains to Stark Corporation: Beginning inventory 0 units Ending…

A: The correct option is option c.

Q: Nelter Corporation, which has only one product, has provided the following data concerning its most…

A:

Q: During the previous year, Casually Company had the following data: Units in beginning inventory…

A: 1.  Product cost Per Unit under absorption costing, would be calculated as follows :  Particular…

Q: Alyssa Company produces a single product. Last year, the company had 16,000 units in its beginning…

A: Total increase in inventory = Higher profit as per absorption costing / fixed manufacturing overhead…

Q: Keyser Corporation, which has only one product, has provided the following data concerning its most…

A: Preparation of Income Statement helps the business entity in determining how much amount of gross…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Fixed cost per unit=Total fixed manufacturing costProduction (Year 2)=$72,000920=$78.260869565

Q: During the most recent year, ABC Company reported the following data. During the year 10,000 units…

A: Under absorption costing fixed overhead costs are allocated to each unit of product produced during…

Q: Levy company produces a single product last year the company net operating income computed by the…

A: As per the variable costing method, only variable cost is measured but under absorption costing both…

Q: Peterson Corporation produces a single product. The company had no beginning inventory and they…

A: a)Ending finished goods inventory under variable costing=(Units produced-Units sold)*direct material…

Q: Dak Mart, a producer of solid oak tables, reports the following data from its second year of…

A: The income statement is prepared to record the revenues and expenses of the current period and…

Q: Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is…

A: Orders 250 units at a time x 30 orders        7,500 Ordering cost per order ($1,100 / 30) $36.67…

Q: Oak Mart, a producer of solid oak tables, reports the following data from its second year of…

A: The income statement can be prepared using various methods as variable costing and absorption…

Q: Oak Mart, a producer of solid oak tables, reports the following data from its second year of…

A: The income statement is prepared to find the net income during the year.

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: Variable product cost includes all the variable expenses such as direct material, direct labor, and…

Q: Hatfield Company, which has only one product, has provided the following data concerning its most…

A: Calculation of unit product cost under variable Costing method:: Direct material::$45.. Direct…

Q: The Dorset Corporation produces and sells a single product. The following data refer to the year…

A: Income statement can be prepared using different methods as absorption costing and variable costing.…

Q: DEF Company produces a single product. For the most recent year, the company's net operating income…

A: There are two types of costing methods.

Q: On January 1, 2016, Omega Company has 16,000 units in its beginning inventory. During the year, the…

A: Given, Beginning Inventory = 16,000 unit Variable Cost = P6 per unit Fixed Cost = P4 per unit

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: The unit product costs under absorption costing:       64000 units 88000 units Direct materials…

Q: Farris Corporation, which has only one product, has provided the following data concerning its most…

A: Net operating income (loss) = 11500

Q: Oak Mart, a producer of solid oak tables, reports the following data from its second year of…

A: Variable Costing is an income statement whereby net income is arrived at by deducting variable costs…

Q: Calculate net income for the month using variable costing.   a. $173,236   b. $153,781   c.…

A: Units produce  81,450 Units sold 77,820 Selling price per unit:                      $13.80…

Q: The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at…

A: A variable costing system refers to the costing system in which manufacturing cost is computed after…

Q: Orange Company produces single product. Last year, the company’s net operating income computed by…

A: Inventory can be defined as the goods that a business holds in its storage for the purpose of sale…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Fixed manufacturing cost per unit = Total Fixed manufacturing cost  / Total production = $72,000 /…

Q: Based on variable costing, what would NUBD Corp. show as the value of its ending inventory? Format:…

A: Unit cost under variable costing = Direct material used + direct labor + Variable manufacturing…

Q: Pacheo Corporation, which has only one product, has provided the following data concerning its most…

A: GIVEN   Pacheo Corporation, which has only one product, has provided the following data concerning…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: Introduction: The profit a business makes after subtracting the costs of manufacturing and selling…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: Jarvix Company, which has only one product, has provided the following data concerning its most…

A: Absorption costing includes anything that is a direct cost in producing a good in its cost basis.…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: The gross profit is the excess of revenue over the cost of goods sold. It is also the amount…

Q: Oak Mart, a producer of solid oak tables, reports the following data from its second year of…

A: Under variable costing the unit product cost is sum total of direct material , direct labor and…

Q: Data concerning Dakota Enterprises' operations last year appear below: Units in the Beginning…

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

Q: Pyne Company produces a single product. The company has 60,000 units in its ending inventory. Pyne's…

A: PROFIT UNDER VARIABLE COSTING WILL BE HIGHER WHEN BEGINNING INVENTORY IS MORE THAN ENDING INVENTORY…

Q: Sprint Shoes Inc. had a beginning inventory of 9,700 units on January 1, 20X1. The costs associated…

A: The inventory valuation is based on the flow of inventory. The LIFO method says that recently…

Q: [The following information applies to the questions displayed below.] Oak Mart, a producer of solid…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: unit product cost for the month under variable costing

A: Variable costing is a cost accounting method which uses variable costs only for product costing.

Q: 4. Ignacio Company, which has only one product, has provided the following data concerning its most…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

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

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold…

A: Ending inventory units = Total units produced - units sold = 27,120 units - 21,800 units = 5,320…

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.