Variable cost per unit Fixed Costs Production P5 Production Р32,0 Selling & administrative Selling & administrative 16,0 uring the year, 8,000 units were produced, and 7,800 units were sold.

Q: Prepare the absorption costing income statements that Sarah would have shown Jason for both years…

A: Income statement under absorption costing method is to be prepared for 2 years. Absorption costing…

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 7,819 units during a period. The…

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

Q: Josie Gall's firm has develped the following supply, demand, cost and inventory data. Allocate…

A: The final cost can be defined as the cost which includes all related expenses. The minimum cost…

Q: Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…

A: Economic order quantity (EOQ) refers to the level of production activity at which the manufacturing…

Q: sOn the basis of the following information, calculate the net profit for the period and the value of…

A: Using absorption costing fixed costs remains deferred in ending inventory or releases from the…

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: A company produces a single product. Variable production costs are $21 per unit and variable selling…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

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: 1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…

A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Q: The Southern Corporation manufactures a single product and has the following cost structure:…

A: Variable costing is a method of cost accounting which excludes fixed manufacturing overhead from the…

Q: Using Direct Costing Method, Laban Company had a net profit of ₱65,000 and ₱50,000 using Full…

A: Single Step Income Statement is a method of expressing a profit and loss statement that lists all…

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: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $72 per…

A: Absorption costing includes all expenses connected with the manufacture of a product, whereas…

Q: X Corp produces single product. Income under variable costing and absorption costing are 36,400 and…

A: Given,  Income under variable costing= $36,400 Income under absorption costing= $25,600 Product cost…

Q: Answer questions 3 & 4 using the following information: Rebel Company manufactures a single product…

A: Fixed production cost per unit = Total Fixed production cost  / Units produced = P32000/8000 = P4…

Q: Effect of management evaluation criteria on EOQ model. Rugged Outtters purchases one model of…

A: Since there are multiple sub-parts as per guidelines only the first three sub-parts will be…

Q: .The company produced 9,085 units and sold 4,184 units for $874 each. Variable manufacturing costs…

A: Solution:- Calculation of the contribution margin as  follows under:- Introduction:- The following…

Q: At the end of Nabirukan Co.’s first year of operations, 1,000 units of inventory remained on hand.…

A: Answer:   Option A.

Q: ABC Company had P 200,000 income using absorption costing. ABC has no variable manufacturing costs.…

A: Income under variable costing = Income under absorption costing - (Ending inventory - Beginning…

Q: Brother Company sells its products for $66 each. The current production level is 25,000 units. Only…

A: Under absorption costing the fixed manufacturing overheads are treated as a part of unit product…

Q: Lazaro Company produces "Excellent". To produce Excellent, Lazaro will require 15 units of Material…

A:

Q: The following information pertains to NUBD Company's cost-volume-profit relationships: Break-even…

A: Break even point = fixed costs / Contribution margin per unit 1000 units = P150000 / Contribution…

Q: Y product; total sales quantity is 25, unit sales price is 1600 TL, unit variable expense is 1000…

A: Break even point = Total Fixed expenses/(Sales price - Unit variable expense)

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: 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: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $126 per…

A: a. Compute difference in absorption costing operating income for plan to produce 10,000 units and…

Q: The level of inventory of a manufactured product has increased by 7,848 units during a period. The…

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

Q: 1. When prices are rising (inflation), which costing method would produce the highest value for…

A: Last-in, first-out (LIFO) is the inventory valuation method in which the inventory which is…

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: The following data relate to National Company for the year just ended: P750,000 Sales revenue Cost…

A: There are two type of costing systems which are being used. These are Absorption costing system and…

Q: At the beginning of period 1, there are no opening inventories of the product, for which the…

A: Variable costing: Under the variable costing only the variable manufacturing costs like direct…

Q: An increase in of $1,000 in fixed selling overheads will affect the net profit reported under…

A: c) Decrease net profit equally in both absorption and marginal costing

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: Compute for the net income/(loss) under absorption, variable and throughput costing Franz began…

A: Absorption costing :  In this method ,all manufacturing costs are taken as product costs,regardless…

Q: The actual variable cost of goods sold for a product was $140 per unit, while the planned variable…

A:

Q: Given the following information for SAMAH Company, answer the following questions: RO 260 840 Units…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: 2. QUANTITATIVE (choose 2 of 3) - Using the data below for a widget find the EOQ (Q*), reorder point…

A: We have to calculate EOQ and then answer the question based on EOQ.

Q: 1. The value of Bruno's actual ending finished goods inventory on the absorption costing basis was…

A: Working Notes :-…

Q: Variable Costing—Sales Exceed Production The beginning inventory is 14,000 units. All of the units…

A: a. In variable costing fixed manufacturing costs are treated as period costs and is written off.…

Q: Rebel Company manufactures a single product and has the following cost structure: Variable cost per…

A: Fixed production cost per unit = Total Fixed production cost  / Units produced = P32000/8000 = P4…

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: Total variable costs? Variable cost per unit produced  Variable cost per unit produced? If 75% of…

A: Answer:   Particulars Amount Materials 85000 Direct Labour cost 70000 Indirect…

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.