The level of inventory of a manufactured product has increased by 7,848 units during a period. The following data are also available Variable Fixed Unit manufacturing costs of the period $11.00 $3.00 Unit operating expenses of the period 2.00 5.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa, $23,544 increase Ob. $62,784 decrease Oc. $62,784 increase Od. $23,544 decrease

Q: Variable selling and administrative expenses $327,800 Fixed selling and administrative expenses…

A: Absorption costing means that inventory is valued at total manufacturing cost including fixed…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Unit costs include all manufacturing fixed and variable cost. Variable costs are flexible as per…

Q: The beginning inventory is 7,900 units. All of the units that were manufactured during the period…

A: Absorption costing: It is related with all the cost for manufacturing the product of the…

Q: The level of inventory of a manufactured product has increased by 7,616 units during a period. The…

A: Decrease in operating income if variable costing is used = Increase in level of inventory x fixed…

Q: The level of inventory of a manufactured product has increased by 6,980 units during a period. The…

A: Value of inventory under Variable costing = Increase in units of inventory x Variable manufacturing…

Q: The beginning inventory is 52,800 units. All of the units that were manufactured during the period…

A: Variable Costing: Managers frequently use variable costing for internal purposes for taking decision…

Q: Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the…

A: In absorption costing , fixed manufacturing overhead will be included in stock valuation where as in…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Variable costing method only consider variable productive expenses so,In variable costing fixed cost…

Q: The level of inventory of a manufactured product has increased by 7,819 units during a period. The…

A: Variable costing and absorption costing To calculate operating income two different methods used are…

Q: During the most recent year, Osterman Company had the following data: Units in beginning inventory…

A: Cost of goods sold = (Direct materials + Direct labor + Variable overhead + Fixed overhead) x no. of…

Q: Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of…

A: Given that, Barnard Inc. manufactured 1,800 units The variable cost of goods manufactured = $277200…

Q: Given the following: Selling price $164 Units in beginning inventory Units produced 12,100 Units…

A: First we need to understand the meaning of period cost. Period cost are the cost which are not…

Q: Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of…

A: Variable costing concept refers to the accounting cost concept which is used to determine the…

Q: The level of inventory of a manufactured product has increased by 8,413 units during a period. The…

A: Variable costing is one of the cost allocation methods that is used by a company to allocate costs…

Q: The level of inventory of a manufactured product has increased by 7,147 units during a period. The…

A: Absorption Costing: The approach of management accounting known as "absorption costing," which is…

Q: absorption costing

A: The operating income under absorption costing will be lower by the increase in units of inventory…

Q: Inventory Valuation under Absorption and Variable Costing At the end of the first year of…

A: Absorption costing is a method of calculating cost of a product by considering all the indirect…

Q: Bellue Incorporated manufactures a single product. Variable costing net operating income was…

A: Absorption costing: It implies to a costing method that considers or takes into account all the…

Q: The level of inventory of a manufactured product has increased by 7,809 units during a period. The…

A: Absorption costing  includes all cost ie, Direct cost and indirect cost to get operating income It…

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: unit cost of goods manufactured,

A: Variable costing refers to the concept which assigns the cost to inventory. Absorption costing…

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: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A:

Q: Puif Company's absorption costing income statements for the last two years are presented below: Year…

A:

Q: Hall Cosmetics Corporation company has the following costs associated with its production and sales.…

A: Cost per unit=Direct Material+Direct Labor+Variable MOH per unit

Q: Given the following: Selling price Units in beginning inventory Units produced Units sold Units in…

A: There are two type of costing method followed by the entities. (1) Variable costing method (2)…

Q: On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,600 units and…

A: Variable Costing and Absorption Costing - Absorption Costing includes all the costs associated with…

Q: On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,200 units and…

A: Cost of goods sold per unit: Formulas;

Q: You have been provided the following data relating to Milestone Ltd.: Particulars Amount Selling…

A: Period cost is the cost which is not related to production process of a product. It includes both…

Q: What was the absorption costing net operating income last year?

A: Computation of Net operating income under absorption costing

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: Puif Company's absorption costing income statements for the last two years are presented below: Year…

A: Ending inventory for year 2 = beginning units +  units produced - units sold = 1000+8000-9000 = 0

Q: The level of inventory of a manufactured product has increased by 8,417 units during a period. The…

A: Under variable costing, the fixed costs are to be treated as full cost incurred but under absorption…

Q: The level of inventory of a manufactured product has increased by 7,534 units during a period. The…

A: Variable costing is a method under which the direct costs are included which varies according to the…

Q: The level of inventory of a manufactured product has increased by 5,000 units during a period. The…

A: Variable: The cost varies according to the level of units produced.

Q: Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end…

A: Under the Variable costing method, the Unit cost of goods manufactured includes the Variable cost of…

Q: The level of inventory of a manufactured product has increased by 7,949 units during a period. The…

A: In variable income statement all the variable manufacturing expenses are considered as the product…

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: Absorption costing = this is traditional approach, in this approch all fixed Manufacturing overhead…

Q: Absorption Costing Income Statement On October 31, the end of the first month of operations,…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: units In its first year of operations: direct materials, $14 per unit, direct labor, $10 per unit,…

A: Solution: Under variable costing, product cost per unit includes only variable manufacturing costs…

Q: Nighthawk Company's Income Statement for the Year Ended December 31, 2021 Sales (200,000 units)…

A: Sales (200,000 units) $1,200,000 Cost of goods sold 700,000 Gross profit 500,000 Operating expenses…

Q: Neef Corporation has provided the following data for its two most recent years of operation: Selling…

A: In order to compute the net operating income, all the variables, as well as fixed expenditures, are…

Q: The beginning inventory is 16,100 units. All of the units that were manufactured during the period…

A: a) Computation:

Q: The level of inventory of a manufactured product has increased by 7,809 units during a period. The…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: J Company has an ending inventory balance of 5,800 units. There was no inventory at the begir the…

A: Solution: Ending inventory balance for Absorption costing = Ending units * Total product cost per…

Q: The Ievel of inventory of a manufactured product has increased by 7,859 units during a period. The…

A: In variable income statement all the variable manufacturing expenses are considered as the product…

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: Variable costing is the bookkeeping technique wherein all the variable creation costs are just…

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.