Compute Company T’s product cost per pint under absorption costing and variable costing.

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Answer 1

Question

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

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Please don't forget to check your worksheet by changing the units sold in the Data to 6,000 for Year 2 before submitting the response to my question. The cost of goods sold under absorption costing for Year 2 should now be $240,000. If it isn’t, check cell C41. The formula in this cell should be =IF(C26<C27,C26*C36+(C27-C26)*B36,C27*C36).] If your worksheet is operating properly, the net operating income under both absorption costing and variable costing should be $(34,000) for Year 2. That is, the loss in Year 2 is $34,000 under both methods. If you do not get these answers, find the errors in your worksheet and correct them. Assume that the units produced in year 2 were sold first. If someone can help I will give a thumbs up. Thanks for the help! :)

The Junior Achievers Club maintains an inventory of chocolate bars to meet its annual demand for 100,000 bars to service customers. Each bar costs $5.00, and cost per order is $100.00. Carrying costs have been identified as $1.50 per bar. Recently, the supplier has offered the company a 6.5% discount if orders are placed semi-annually. Show all calculations in answering questions below. Required: What will be Achievers Club’s total inventory costs if it utilizes EOQ?

PLEASE INCLUDE THE EXCEL FORMULAS!! Thanks!! Please don't forget to check your worksheet by changing the units sold in the Data to 6,000 for Year 2 before submitting the response to my question. The cost of goods sold under absorption costing for Year 2 should now be $240,000. If it isn’t, check cell C41. The formula in this cell should be =IF(C26<C27,C26*C36+(C27-C26)*B36,C27*C36).] If your worksheet is operating properly, the net operating income under both absorption costing and variable costing should be $(34,000) for Year 2. That is, the loss in Year 2 is $34,000 under both methods. If you do not get these answers, find the errors in your worksheet and correct them. Assume that the units produced in year 2 were sold first. If someone can help I will give a thumbs up. Thanks for the help! :)

Answer 2

Question

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Answer 6

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

Answer 7

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

Answer 8

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

Answer 9

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

Answer 10

3.

To determine

Prepare income statement using absorption costing and variable costing.

Answer 11

3.

To determine

Prepare income statement using absorption costing and variable costing.

Answer 12

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Answer 13

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 21 - Pierce Company had the following costs: Calculate...Ch. 21 - Hayden Company has 50 units in Finished Goods...Ch. 21 - The Stark Company manufactures a product that is...Ch. 21 - Chaney Company provides lawn care services....Ch. 21 - Prob. 1QC Ch. 21 - Prob. 2QC Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...

Compute Company T’s product cost per pint under absorption costing and variable costing.

Solution Summary: The author explains how to calculate Company T's product cost per pint under absorption costing and variable cost.

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Compute Company T’s product cost per pint under absorption costing and variable costing.

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

Prepare income statement using absorption costing and variable costing.

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

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Chapter 21 Solutions