rmn.3 Waters, Inc. reports the following information:Units producedUnits soldSales priceDirect materialsDirect laborVariablemanufacturingoverheadFixedmanufacturingoverheadVariable sellingandadministrativecostsFixed sellingandadministrativecosts2,500 units2,000 unitsper$200 unitper$40 unitper$25 unitper$20 unitper$90,000 yearper$15 unitper$75,000 yearAssume that the production costs and sales prices were the same in the previousyear. Assume no beginning inventories.Requirements:Calculate the operating income using absorption costing and variable costing.Show all calculations.

Name: rmn.3 Waters, Inc. reports the following information:Units producedUni
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Description: rmn.3 Waters, Inc. reports the following information:Units producedUnits soldSales priceDirect materialsDirect laborVariablemanufacturingoverheadFixedmanufacturingoverheadVariable sellingandadministrativecostsFixed sellingandadministrativecosts2,500

ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

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Waters, Inc. reports the following information: Units produced 2,500 units Units sold 2,000 units Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs per $200 unit per $40 unit per $25 unit per $20 unit per $90,000 year per $15 unit per $75,000 year Assume that the production costs and sales prices were the same in the previous year. Assume no beginning inventories. Requirements: Calculate the operating income using absorption costing and variable costing. Show all calculations.

Waters, Inc. reports the following information: Units produced 2,500 units Units sold 2,000 units Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs per $200 unit per $40 unit per $25 unit per $20 unit per $90,000 year per $15 unit per $75,000 year Assume that the production costs and sales prices were the same in the previous year. Assume no beginning inventories. Requirements: Calculate the operating income using absorption costing and variable costing. Show all calculations.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
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Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?