The records of Anderjak Corporation contain the following information for the month of January: The company has no beginning inventory. REQUIREMENT You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

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Answer 1

Textbook Question

Chapter 19, Problem 1R

The records of Anderjak Corporation contain the following information for the month of January:

Chapter 19, Problem 1R, The records of Anderjak Corporation contain the following information for the month of January:

The

The company has no beginning inventory.

REQUIREMENT

You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

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Gates Manufacturing reports based on an October 31 fiscal year. As a part of your interview for a cost analyst position, the interviewer provides you with the following information: Direct materials purchases Work-in-process inventory, November 1 Finished goods inventory, November 1 Finished goods inventory, October 31 Manufacturing overhead Cost of goods sold Direct labor Decrease in work-in-process inventory Average sales price per unit Gross margin percentage $ 96,000 53,000 30,800 31,800 57,600 Required: a. Find the cost of goods manufactured. b. Find the total manufacturing costs. c. Find the direct materials used. d. Find the sales revenue. e. Find the increase (decrease) in direct materials inventory. 221,000 30,400 28,000 20 ,35% please please please solve all parts with all working if you can't solve all just skip/leave for other expert please do not waste my question with giving incomplete or incorrect answer thanks

The company uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. The predetermined overhead rate was computed from the following data: Total estimated factory overhead $2,400,000 Total estimated direct labour cost $2,000,000 The WIP account given below relates to the activities for the month of June: WIP Inventory A/C June 1 Balance b/f $15,000 Direct Materials Used 123,000 Additional data: ▪ Total material requisitioned ………………………………… $153,000 ▪ Manufacturing Labour Costs incurred …………………. $163,500 (75% represents direct labour) ▪ Other manufacturing overheads incurred …………... $94,275 ▪ Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold on account at a margin of 33 1/3% on sales. Compute the predetermined manufacturing overhead rate.

The company uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. The predetermined overhead rate was computed from the following data: Total estimated factory overhead $2,400,000 Total estimated direct labour cost $2,000,000 The WIP account given below relates to the activities for the month of June: WIP Inventory A/C June 1 Balance b/f $15,000 Direct Materials Used 123,000 Additional data: ▪ Total material requisitioned ………………………………… $153,000 ▪ Manufacturing Labour Costs incurred …………………. $163,500 (75% represents direct labour) ▪ Other manufacturing overheads incurred …………... $94,275 ▪ Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold on account at a margin of 33 1/3% on sales. State the journal entries necessary to record the following transactions in the general journal. (i) Total materials issued to production (ii)…

Answer 2

Textbook Question

Chapter 19, Problem 1R

The records of Anderjak Corporation contain the following information for the month of January:

Chapter 19, Problem 1R, The records of Anderjak Corporation contain the following information for the month of January:

The

The company has no beginning inventory.

REQUIREMENT

You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

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Answer 3

Textbook Question

Chapter 19, Problem 1R

The records of Anderjak Corporation contain the following information for the month of January:

Chapter 19, Problem 1R, The records of Anderjak Corporation contain the following information for the month of January:

The

The company has no beginning inventory.

REQUIREMENT

You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

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Answer 4

Textbook Question

Chapter 19, Problem 1R

The records of Anderjak Corporation contain the following information for the month of January:

Chapter 19, Problem 1R, The records of Anderjak Corporation contain the following information for the month of January:

The

The company has no beginning inventory.

REQUIREMENT

You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

Answer 8

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Answer 12

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

Answer 13

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