Operating incomeb. Prepare an income statement using variable costing.Townsend Co.Variable Costing Income StatementFor the Month Ended January 31Variable cost of goods sold:Fixed costs:Operating income0000 On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized theresults for January:UnitsProduction50,000Sales ($18 per unit)(42,000)Inventory, January 318,000Manufacturing costs:Variable$575,000Fixed80,000Total$655,000Selling and administrative expenses:Variable$35,000Fixed10,500Total$45,500a. Prepare an income statement using absorption costing.Townsend Co.Absorption Costing Income StatementFor the Month Ended January 31Next

working notes: Sales (42000*$18) =7,56,000 manufacturing cost = 655000/50000 =13.10 = 8000 ( cost…

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t at 100% of capacity during January. The following data summari.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Kimber Company has the following unit costs for the current year: Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is: a. 560,000. b. 575,000. c. 615,000. d. 630,000.
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Line Item Description Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Amount Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Amount Variable $35,000 Fixed 10,500 Total $45,500 Question Content Area a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 Line Item Description Amount Amount $- Select - Cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - Operating income $Operating income Question Content Area b. Prepare an income statement using variable costing. Townsend Co. Variable Costing Income Statement For the Month Ended January 31 Line Item Description Amount Amount $-…
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 Fixed 10,500 Total $45,500 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 $fill in the blank ae5862062016005_2 Cost of goods sold: $fill in the blank ae5862062016005_4 fill in the blank ae5862062016005_6 fill in the blank ae5862062016005_8 $fill in the blank ae5862062016005_10 fill in the blank ae5862062016005_12 Operating income $fill in the blank…
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarIzed the results for January: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 Fixed 10,500 Total $45,500 a. Prepare an income statement using absorption costing.
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Production Sales ($18 per unit) Inventory, January 31 Manufacturing costs: Variable Fixed Total Selling and administrative expenses: Variable Fixed Total Cost of goods sold: Units 50,000 (42,000) 8,000 Operating income $575,000 80,000 $655,000 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 Line Item Description Amount Amount $35,000 10,500 $45,500
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: وا من ومی و ی م م م م م م ی Units 50,000 Production Sales ($18 per unit) Inventory, January 31 42.000 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: $ 35,000 10,500 $ 45,500 Variable Fixed Total (a) Prepare an income statement using absorption costing. ان می و ن و ن ی و و و ی و ه م (b) Prepare an income statement using variable costing. و م م م م م م م م مه مه م (C) Explain the reason for difference between two incomes ا ی و ه و و ه و و و و و و و و ه مه م
The following data refer to Quest Ltd for the current year:Sales Revenues $575 000Work in process inventory, 31December20 000Work in process inventory, 1 January 25 000Product promotion cost 30 000Rental of office space for salespersonnel20 000Cost of idle time: sales employees 20 000Income tax expense 60 000Purchase of raw materials 95 000Raw materials inventory, 31 December 17 500Raw material inventory. 1 January 25 000Direct labour 105 000Electricity: plant 25 000Depreciation plant and equipment 35 000Finished goods inventory, 31December30 000Finished goods inventory, 1 January 15 000Indirect material 5 000Indirect labour 7 500Production supervisor’s salary 40 000Required:a) Prepare the schedule of cost of goods manufactured for Quest Ltd.b) Prepare the schedule of cost of goods sold for Quest Ltd.c) Prepare an income statement for Quest Ltd for the current year.
Selected data for Miller Company, which operates three departments, follow: Department A Department B Department C Inventory $120,000 $432,000 $168,000 Equipment (average cost) $1,080,000 $648,000 $432,000 Payroll $810,000 $720,000 $270,000 Square feet of floor space 18,000 9,000 3,000 During the year, the company's fixed expenses included the following: Depreciation on equipment $120,000 Real estate taxes 36,000 Personal property taxes (on inventory and equipment) 57,600 Personnel department expenses 40,000 Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments. Do not round until your final answer. Round final…
ABC Manufacturing has the following account balances at the beginning of the current year: Raw Materials Inventory P57,500; WIP Inventory P172,500; and Finished Goods Inventory P138,000. Additional information during January: - Purchased of Raw Materials: On account P230,000.00; Cash P92,000.00; and - Issuance of Raw Materials to the production department, 10% are indirect materials P207,000.00. Which of the following is the amount of the direct materials used? Select the correct response: P174,800.00 P184,000.00 P186,300.00 P201,250.00
Bigtime Company reported the following year-end information: Beginning work in process inventory $ 35,000 Beginning raw materials inventory $18,000 Ending work in process inventory $38,000 Ending raw materials inventory $15,000 Raw materials purchased $560,000 Direct labor $210,000 Manufacturing overhead $120,000 How much is Bigtime's total cost of work in process for the year? a. $925,000 b. $893,000 c. $890,000 d. $928,000
The following information were related to the full year’s activities of Lexus Industries on its first year of operations, 2020: Raw materials, net purchases ₱ 8,125,000; Direct labor cost 2,875,000; Factory overhead 1,250,000; Selling, general and administrative 850,000. The following information are available: (1)80% of available raw materials were transferred to production. (2) 90% of the work in process were completed.(3) 78% of the finished goods were sold. (4)20% of the factory overhead related to depreciation. (5)18% of the Selling, General & Administrative related to depreciation. How much is the cost of goods sold?
During December of the current year, Parker Company purchased $3,500,000 raw materials. During the month, Parker incurred $2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials $100,000; Decrease in work in process $150,000 and decrease in finished goods $75,000. If the goods available for sale is $7,500,000, what is the value of finished goods at December 31? $203,000 $578,000 $78,000 $75,000