Question
  1. On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 3,900 units and sold 3,400 units. The following income statement was prepared, based on the variable costing concept:

    Frankenreiter Inc.
    Variable Costing Income Statement
    For the Year Ended December 31, 20Y1
    Sales   $1,394,000  
    Variable cost of goods sold:    
    Variable cost of goods manufactured $768,300     
    Inventory, December 31 (98,500)    
    Total variable cost of goods sold   669,800  
    Manufacturing margin   $724,200  
    Total variable selling and administrative expenses   166,600  
    Contribution margin   $557,600  
    Fixed costs:    
    Fixed manufacturing costs $351,000     
    Fixed selling and administrative expenses 112,200       
    Total fixed costs     463,200  
    Income from operations   $94,400  

    Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

    Variable costing $
    Absorption costing $
 

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: What questions should managers answer when setting regular prices?

A: Following are the major factors which managers should answer when the regular prices are fixed: Wha...

Q: When using the indirect method of determining net cash flows from operating activities, how is warra...

A: Cash flow statement:   Cash flow statement (CPS) is a type of financial statement that gives a summa...

Q: Prepare journal entries to record the transactions incurred in the liquidation of a partnership.

A: In a partnership, two or more parties agree to operate and manage a business and share the profits o...

Q: Assume that a U.S.-based company is issuing securities to foreign investors who require financial st...

A: a.

Q: Rent on a manufacturing plant donated by the county, where the agreement calls for rent of $100,000 ...

A: Regression analysis: Regression analysis is the term which is used to understand the relationship be...

Q: Ace Company had 200,000 shares of common stock outstanding on December 31, 2021. During the year 202...

A: Date Particulars No. of Shares Weight Weighted Average Jan. 1 Opening Outstanding Shares 200,000 1...

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to leases.

A: U.S. GAAP refers to the common set of accepted accounting standards, procedures, and principles that...

Q: A Celty Airline jet costs $28,000,000 and is expected to fly 200,000,000 miles during its 10-year li...

A: Unit of production method: Depreciation per mile= Cost of jet/ Estimated miles for life             ...

Q: 1 Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, tha...

A: Transaction: The economic event which brings about any changes in the financial items of a business ...

Q: Accounting Question

A: The differential analysis is made by the company to measure the difference in the cost and revenue o...

Q: Below is the Retained Earnings account for the year 2020 for Acadian Corp. Retained earnings, Jan...

A: Retained earnings account is a statement showing the beginning and ending balances of retained earni...

Q: Journalizing closing entries Brett Teddy Enterprises had the following accounts and normal balances ...

A: Click to see the answer

Q: Choose the correct. Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this ...

A: Mattoon, Inc share of consolidated net income = $465,000 No. of common stock outstanding = 100,000  

Q: On January 1, 2021, Tonge Industries had outstanding 440,000 common shares ($l par) that originally ...

A: Compute the basic and diluted earnings per share for the year ended December 31, 2021:  Compute the ...

Q: At the end of 2020, Sawyer Company is conducting an impairment test and needs to develop a fair valu...

A: Here we just need to find the present value at the end of 2020

Q: For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: What nonlease costs might be included as part of lease payments? How are they accounted for by the l...

A: Click to see the answer

Q: Q7: Mr. Yonus had a sum of money and he wants to double them in a period of 5 ½ years. He approached...

A: The rate of simple interest at which the amount will double can be explained using the following exa...

Q: Solve the parts a,b,c as they are related Sohar Potato Chips LLC purchased a machine for OMR 12,000 ...

A: Machine cost OMR 12000 Depreciation is calculated 10% per annum for first 3 years and 7% for next tw...

Q: The images contain the questions - I am unable to figure out part c.

A: Free cash flows are the amount of cash from operations after incurring capital expenditures. It is c...

Q: In a stock acquisition accounted for by the equity method, a portion of the purchase price often is ...

A: The equity method of stock acquisition is used where the investor holds 20% to 50% of the stock of t...

Q: Historically, what factors contributed to the diversity of accounting systems worldwide?

A: The following are the five major factors that have contributed to the diversity of accounting system...

Q: Which forms do most companies file with the SEC on a periodic basis? Explain the purpose of each for...

A: Securities and Exchange Commission (SEC): SEC was created under the Securities Act of 1933 and Secur...

Q: Why are financial statements prepared in a specific order? What is that order?

A:  

Q: SUGGEST A NON-FINANCIAL MEASURE THAT CAN BE USED TO EVALUATE THE PERFORMANCE OF THE COMPANY AS A WHO...

A: Traditionally financial performances have been used to evaluate the performance of the corporate whi...

Q: Explain why companies do not include principle payment requirement when calculating earnings to fixe...

A: Fixed-Charge Coverage Ratio (FCCR): The Fixed-Charge Coverage Ratio (FCCR) assesses the ability of a...

Q: On June 1 Hammer Company purchased inventory from a foreignsupplier at a price of 75,000 FCU (FCU is...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

Q: Assume that Sara is partly correct in her assessment of the report. Upon further investigation, it i...

A: Operating income: Income statement reports revenues and expenses from business operations, and the r...

Q: Your friend, Dean McChesney, requested that you advise him on the effects that certain transactions ...

A: T-account refers to a set of financial records that uses the method of double-entry bookkeeping. It ...

Q: Three years ago American Insulation Corporation issued 10%, $800,000, 10-year bonds for $770,000. Am...

A: Calculate the discount on bond as follows: Discount on bond = face value - issue price Discount on b...

Q: Salaries of repair personnel, where one person is needed for every 1,000 machine-hours or less (that...

A: Regression analysis: Regression analysis is that term which is used to understand the relationship b...

Q: Making product mix decisions Brik, located in San Antonio, Texas, produces two lines of electric too...

A: 1. Constraining factor for Brik is  Machine hours. Factory have production capacity of 4,900 machine...

Q: Briefly describe the ratios that can be used to evaluate a company’s ability to sell merchandise inv...

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and m...

Q: Q Canarsie Corporation uses a balanced scorecard to evaluate its digital camera manufacturing operat...

A: Balanced scorecard: Balance scorecard is a tool to assess the performance that relates a company’s s...

Q: Presented below is information related to Bobby Engram Company.   00Cost00 0 Retail0  Begin...

A: Click to see the answer

Q: Understanding internal control, components, procedures, and laws Match the following terms with thei...

A: Internal control: Internal control is a process which ensures continuous reliability of accomplishme...

Q: LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitle executives to receive...

A: Stock appreciation rights (SARs): Stock appreciation rights are the compensation plans provided in t...

Q: Discuss five differences between cash and accural

A: Cash basis of accounting: Cash basis of accounting refers to the recognition of financial transactio...

Q: loan amount = 10,000$ periods= 5 years interest is 5% and it increases each month by 0.125% find the...

A: Interest Expense: The cost of debt which is occurred during a particular period of time is called in...

Q: A parent company acquires from a third party bonds that had been issued originally by one of its sub...

A: If the bonds had been acquired directly from the subsidiary than from a third party then the debt wo...

Q: There are three conditions necessitating a departure from an unmodified audit report.  Name, discuss...

A: Click to see the answer

Q: Under what conditions must an enterprise provide information about geographic areas?

A: Financial Statements:   It refers to the end reports prepared by the organization at the end of the ...

Q: Describe the conference method for estimating a cost function. What are two advantages of this metho...

A:  

Q: When does a premium on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lend...

Q: A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of ...

A: a. Calculate the balance of each partner as follows: Formulas:

Q: What are the four steps involved in the closing process for a merchandising company?

A: Closing entries: These are the journal entries that are recorded at the end of an each accounting pe...

Q: Banks sometimes loan cash under noninterest-bearing notes. Is it true that banks lend money without ...

A:  

Q: Lynch Corporation has a wholly owned subsidiary in Mexico (Lynmex) with two distinct and unrelated l...

A: Click to see the answer

Q: What information must an enterprise report by geographic area?

A: Revenue: The account which is to be credited when a company receives donated assets is the revenue ...

Q: Demarco and Janine Jackson have been married for 20 years and have four children who qualify as thei...

A: Click to see the answer