Week 10 _ Marginal/Variable CostingDiscussion Question In June 2018, Refresh Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.The sale price was $54 per jar. Variable costs were $20 per case ($16 manufacturing and $4selling & administrative) and total fixed costs were $90,000 ($70,000 manufacturing and$20,000 selling & administrative). The company had no beginning inventory. Required: a) Calculate the following for Refresh Adei) The total cost per unitii) The value of ending inventories using marginal costingiii) The value of ending inventories using total costingb) Prepare the June income statement for Refresh Ade using variable costing, clearlyshowing contribution and the components of total fixed costs.
Week 10 _ Marginal/Variable CostingDiscussion Question In June 2018, Refresh Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.The sale price was $54 per jar. Variable costs were $20 per case ($16 manufacturing and $4selling & administrative) and total fixed costs were $90,000 ($70,000 manufacturing and$20,000 selling & administrative). The company had no beginning inventory. Required: a) Calculate the following for Refresh Adei) The total cost per unitii) The value of ending inventories using marginal costingiii) The value of ending inventories using total costingb) Prepare the June income statement for Refresh Ade using variable costing, clearlyshowing contribution and the components of total fixed costs.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...
Related questions
Question
Week 10 _ Marginal/Variable Costing
Discussion Question
In June 2018, Refresh Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.
The sale price was $54 per jar. Variable costs were $20 per case ($16 manufacturing and $4
selling & administrative) and total fixed costs were $90,000 ($70,000 manufacturing and
$20,000 selling & administrative).
The company had no beginning inventory.
Required:
a) Calculate the following for Refresh Ade
i) The total cost per unit
ii) The value of ending inventories using marginal costing
iii) The value of ending inventories using total costing
b) Prepare the June income statement for Refresh Ade using variable costing, clearly
showing contribution and the components of total fixed costs.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College