MANAGERIAL ACCOUNTING <CUSTOM>
16th Edition
ISBN: 9781307054774
Author: Garrison
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 6, Problem 1AE
| A | B | C | D | E | |
| 1 | Chapter 6: Applying Excel | ||||
| 2 | |||||
| 3 | Data | ||||
| 4 | Selling price per unit | $50 | |||
| 5 | |||||
| 6 | Variable per unit produced | ||||
| 7 | Direct materials | $11 | |||
| 8 | Direct labour | ||||
| 9 | Variable manufacturing overhead | $6 | |||
| 10 | Fixed manufacturing overhead per year | $120,000 | |||
| 11 | Selling and administrative expenses | ||||
| 12 | Variable per unit sold | $4 | |||
| 13 | Fixed per year | $70 000 | |||
| 14 | |||||
| 15 | Year 1 | Year 2 | |||
| 16 | Units in beginning inventory | 0 | ? | ||
| 17 | Units produced doing the year | 10 000 | 6 000 | ||
| 18 | Units sold doing the year | 8 000 | 8 000 | ||
| 19 | |||||
| 20 | Enter a formula into each of the cells marked with a ? below |
||||
| 21 | Review Problem 1: Contrasting Variable and Absorption Costing | ||||
| 22 | |||||
| 23 | Compute the Ending Inventory | ||||
| 24 | Year 1 | Year 2 | |||
| 25 | Units in beginning inventory | 0 | ? | ||
| 26 | Units produced doing the year | ? | ? | ||
| 27 | Units sold doing the year | ? | ? | ||
| 28 | Units in ending inventory | ? | ? | ||
| 29 | |||||
| 30 | Compute the Absorption Costing Unit Product Cost | ||||
| 31 | Year 1 | Year 2 | |||
| 32 | Direct materials | ? | ? | ||
| 33 | Direct labour | ? | ? | ||
| 34 | Variable manufacturing overhead | ? | ? | ||
| 35 | Fixed manufacturing overhead | ? | ? | ||
| 36 | Absorption costing unit product cost | ? | ? | ||
| 37 | |||||
| 38 | Construct the Absorption Costing Income Statement | ||||
| 39 | Year 1 | Year 2 | |||
| 40 | Sales | ? | ? | ||
| 41 | Cost of goods sold | ? | ? | ||
| 42 | Gross margin | ? | ? | ||
| 43 | Selling and administrative expenses | ? | ? | ||
| 44 | Net operating income | ? | ? | ||
| 45 | |||||
| 46 | Compute the Variable Costing Unit Product Cost | ||||
| 47 | Year 1 | Year 2 | |||
| 48 | Direct materials | ? | ? | ||
| 49 | Direct labour | ? | ? | ||
| 50 | Variable manufacturing overhead | ? | ? | ||
| 51 | Variable costing unit product cost | ? | ? | ||
| 52 | |||||
| 53 | Construct the Variable Costing Income Statement | ||||
| 54 | Year 1 | Year 2 | |||
| 55 | Sales | ? | ? | ||
| 56 | Variable expenses | ||||
| 57 | Variable cost of goods sold | ? | ? | ||
| 58 | Variable selling and administrative expenses | ? | ? | ? | ? |
| 59 | Contribution margin | ? | ? | ||
| 60 | Fixed expenses | ||||
| 61 | Fixed manufacturing overhead | ? | ? | ||
| 62 | Fixed selling and administrative expenses | ? | ? | ? | ? |
| 63 | Net operating income | ? | ? | ||
You should proceed to the requirements below only after completing your worksheet. The LIFO inventory flow assumption is used throughout this problem.
Required:
1. Check your worksheet by changing the units sold in the Data to 6,000 for Year 2. The cost of goods sold under absorption costing for Year 2 should now be $24-0.000. If it isn't check cell C41. The formula in this cell should be =IF(C26
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A
1 Chapter 7: Applying Excel
2
3 Data
4 Selling price per unit
5 Manufacturing costs:
6
7
8
Variable per unit produced:
Direct materials
Direct labor
Variable manufacturing overhead
9
10 Fixed manufacturing overhead per year
11 Selling and administrative expenses:
12 Variable per unit sold
13
Fixed per year
14
15
16 Units in beginning inventory
17 Units produced during the year
18 Units sold during the year
25 Units in beginning inventory
26 Units produced during the year
27 Units sold during the year
28 Units in ending inventory
29
30 Compute the Absorption Costing Unit Product Cost
31
32 Direct materials
33 Direct labor
34 Variable manufacturing overhead
35 Fixed manufacturing overhead
36 Absorption costing unit product cost
37
19
20 Enter a formula into each of the cells marked with a ? below
21 Review Problem 1: Contrasting Variable and Absorption Costing
22
23 Compute the Ending Inventory
24
46 Compute the Variable Costing Unit Product Cost
47
48 Direct materials
49 Direct labor…
A
1 Original Data:
2
3
4
5
6
7
8
9
10
11
12 Part 1
13
14
15
16
Estimated MOH
Estimated DLHS
28
29
B
Selling price per unit
Direct materials per unit
Direct labour per unit
Direct labour-hours per unit
Estimated annual productio
POR:
17
18 Sales
19 Less product costs
20
21
22
23 Total product costs
24 Product margin
Direct materials
Direct labour
Manufacturing overhead
25 Units produced and sold:
26 Product margin per unit
27
$1,350,000
112,500
High Grade
$212.50
$83.50
$30.00
1.00
75,000
High Grade
D
Professional
$387.00
$212.00
$45.00
1.50
25,000
per DLHs
Professional
Total
2. Change all of the numbers in the data area of your worksheet so that it looks like this:
A
1 Chapter 8: Applying Excel
2
3
Data
4 Selling price per unit
5
Manufacturing costs:
6
Variable per unit produced:
7
8
9
10
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead per year
11 Selling and administrative expenses:
12
Variable per unit sold
Fixed per year
13
14
15
16
17
18
Units in beginning inventory
Units produced during the year
Units sold during the year
Net operating income
$
$
$
$
$
B
Yes
O No
399
142
74
39
170,000
Year 1
Net operating income
3
$ 98,000
O Yes
No
0
3,400
2,900
If your formulas are correct, you should get the correct answers to the following questions.
(a) What is the net operating income (loss) in Year 1 under absorption costing?
✔Units were left over from the previous year.
C
Year 2
2,500
2,900
3.
Make a note of the absorption costing net operating income (loss) in Year 2.
(b) What is the net operating income (loss) in…
Chapter 6 Solutions
MANAGERIAL ACCOUNTING <CUSTOM>
Ch. 6.A - Prob. 1ECh. 6.A - EXERCISE 6A-2 Super-Variable Costing and Variable...Ch. 6.A - Prob. 3ECh. 6.A - PROBLEM 6A-4 Super-Variable Costing and Variable...Ch. 6.A - Prob. 5PCh. 6 - Prob. 1QCh. 6 - Are selling and administrative expenses treated as...Ch. 6 - Explain how fixed manufacturing overhead costs are...Ch. 6 - What are the arguments in favor of treating fixed...Ch. 6 - What are the arguments in favor of treating fixed...
Ch. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Under absorption costing, how is it possible to...Ch. 6 - Prob. 10QCh. 6 - Prob. 11QCh. 6 - What costs are assigned to a segment under the...Ch. 6 - Distinguish between a trace able fixed cost and a...Ch. 6 - Explain how the contribution margin differs from...Ch. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Should a company allocate its common feed costs to...Ch. 6 - A B C D E 1 Chapter 6: Applying Excel 2 3 Data 4...Ch. 6 - A B C D E 1 Chapter 6: Applying Excel 2 3 Data 4...Ch. 6 - A B C D E
1 Chapter 6: Applying...Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 2F15Ch. 6 - Prob. 3F15Ch. 6 - Prob. 4F15Ch. 6 - Prob. 5F15Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 7F15Ch. 6 - Prob. 8F15Ch. 6 - Prob. 9F15Ch. 6 - Prob. 10F15Ch. 6 - Prob. 11F15Ch. 6 - Prob. 12F15Ch. 6 - Prob. 13F15Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 15F15Ch. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - EXERCISE 6-6 Variable and Absorption Costing Unit...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - EXERCISE 6-9 Variable and Absorption Costing Unit...Ch. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - EXERCISE 6—15 Absorption Costing Unit Product Cost...Ch. 6 - EXERCISE 6-16 Working with a Segmented Income...Ch. 6 - Prob. 17ECh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - PROBLEM 6—21 Segment Reporting and Decision-Making...Ch. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - PROBLEM 6-24 Companywide and Segment Break-Even...Ch. 6 - Prob. 25PCh. 6 - Prob. 26PCh. 6 - PROBLEM 6-27 Incentives Created by Absorption...Ch. 6 - Prob. 28PCh. 6 - Prob. 29CCh. 6 - Prob. 30C
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.Similar questions
- 2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 6: Applying Excel 2 ook 3 Data rint 456 Selling price per unit Manufacturing costs: Variable per unit produced: B C $ 296 7 Direct materials $ 104 rences 8 9 10 11 B12345 Direct labor $ 76 Variable manufacturing overhead $ 26 Fixed manufacturing overhead per year $ 184,800 Selling and administrative expenses: Variable per unit sold $ 9 Fixed per year $ 77,000 Units in beginning inventory 16 Units produced during the year 17 Units sold during the year 18 Year 1 Year 2 0 3,300 2,800 3,000 3,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? Net operating lossarrow_forwardBody Time, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows: (Click the icon to view the data.) The weight-lifting craze suggests that Body Time can sell enough of either Model 9 or Model 14 to keep the plant operating at full capacity. Both products are processed through the same production departments. Read the requirements. Before determining which products to produce, let's calculate the contribution margin per unit and the contribution margin per machine hour for each machine. (Reduce the fixed manufacturing overhead to the lowest possible ratio of machine hours in order to calculate the contribution margin per machine hour. Example: 8:4 would be 2:1. Enter the amounts to the nearest cent.) = Contribution margin per unit = Contribution margin per machine hour Model 9 Model 14arrow_forward1- Chapter 1 Assignment i 1 of 15 € a 19 2 Total manufacturing overhead cost Manufacturing overhead per unit 4# Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Okay 3 4 Y A Saved 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) & LO 5 * Help 6 Save & Exit 7 Average Cost per Unit $7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 You Check my work 8 Submit 9 } 11 0 darrow_forward
- Indicator ' A 16 17 18 19 20 (1) $126,000 105,000 84,000 $200,000 D (2) $150,000 128,000 22,000 $138,000 E 1 2 Required: 3 Determine the missing amount for each separate situation involving work in process cost flows. 4 5 6 Total manufacturing costs 7 Work in process inventory, beginning 8 Work in process inventory, ending 9 Cost of goods manufactured 10 11 12 13 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 14 Nothing in this area will be graded, but it will be submitted with your assignment. 15 (3) $217,000 32,000 185,000 $237,000 F G H 1 Jarrow_forwardQuestion Q1Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost:Fixed Manufacturing overhead Rs 40,000Fixed Selling & Administrative Rs 60,000Selling Price per unit Rs 100Variable cost per unit:Direct Materials Rs 30Direct labor Rs 10Variable Manufacturing overhead Rs 5Variable Selling & Administrative Rs 2Units In beginning Inventory 0Units Produced 2000Units Sold 1900 Required: a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.arrow_forwardA1 fx Chapter 10: Applying Excel A В C E F 1 Chapter 10: Applying Excel 2 3 Data 4 Exhibit 10-1: Standard Cost Card Iпрuts Standard Quantity 2.9 pounds Standard Price 6 Direct materials 7 Direct labor 8 Variable manufacturing overhead $4.00 per pound $22.00 per hour $6.00 per hour 0.60 hours 0.60 hours 9. 10 Actual results: Actual output 11 2,000 units $7,140 Actual Quantity 6,500 pounds 12 Actual variable manufacturing overhead cost Actual price $3.80 per pound $21.60 per hour 13 14 Actual direct materials cost 15 Actual direct labor cost 1,050 hours 16 17 Enter a formula into each of the cells marked with a ? below 18 Main Example: Chapter 10 19 20 Exhibit 10-4: Standard Cost Variance Analysis- Direct Materials 21 Standard Quantity Allowed for the Actual Output, at Standard Price 22 Actual Quantity of Input, at Standard Price 23 Actual Quantity of Input, at Actual Price 5,800 pounds x 6,500 pounds x 6,500 pounds x $4.00 per pound = $4.00 per pound = $3.80 per pound = $23,200 $26,000…arrow_forward
- 云 00 y 2 M c P E. y!m ME A N N C. A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignme... YouTube Maps 9 Review HW 3.2 M Gmail Chapter 20 Homework Equivalent Units of Production: Average Cost Method the ren Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: d ui anc Drawing Department Winding Department Work in process, July 1 1,950 units, 65% completed 600 units, 35% completed 950 Completed and transferred to next 31,200 units 30,400 units processing department during July Work in process, July 31 1,500 units, 65% completed 1,000 units, 35% completed Each department uses the average cost method. its of a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. fwho. its of p of proc Whole units 32,700 V units Equivalent units of production 31,410 X units b. Determine the number of…arrow_forward%24 Kesterson Corporation has provided the following information: Cost Cost per Period per Unit $7.20 $4.30 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense 09 $2.20 $0.50 If 7,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to: Multiple Cholce $12,000 O $36.750 re to search F4 F5 F7 F8 F10 てい1 Coca %23 Varrow_forwardYPLUS Kimmel, Accounting, 7e Help | System Announcements CALCULATOR PRINTER VERSION 1 BACK NEXT National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. RESOURCES OMEWORK --05 -07 -09 -11 a-b Per Unit Total Direct materials $21 -16 Direct labor $41 --01A -02A -03A Variable manufacturing overhead Fixed manufacturing overhead $14 $1,264,000 Variable selling and administrative expenses $ 4 Fixed selling and administrative expenses $ 1,106,000 Its by Study These costs are based on a budgeted volume of 79,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%. Compute the total variable cost per unit, otal fixed cost per unit, and total cost per unit for M14-M16. Variable cost per unit 2$ Fixed cost per unit Total cost per unit 24 MacBookarrow_forward
- Question 4 The following data is available for the products that a company manufactures: Sales price Costs: Direct material Direct labour Variable manufacturing overhead Fixed manufacturing overhead Paragraph BI UA/ 叩く Product A $120 IIII 50 27 Material required 2.3 meters 3.0 meters 1.5 hours 1.0 hours Direct labour hours required Machine hours required 0.8 hours 0.5 hours The demand for each product exceeds the capacity of labour hours available to produce them. Required: 1. Compute the amount of contribution margin (profitability index) for Product B given the indicated constraint. 2. If the company has the indicated constraint, what are two ways they can increase capacity at the bottleneck? 16 8 Product B $140 +v 40 18 10 5arrow_forwardA. ==== Paragraph G h CO 1 Normal No Spac... Heading Heading 2 Styles Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet Variable factory overhead per helmet 4 Title Total fixed factory overhead 20,000 Variable selling expense is a commission of $3 per helmet, fixed selling and administrative expense totals $29,500. Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the coming year. H Subtit (Ctrl)arrow_forwardQuestion 8 Cranston Corporation makes four products in a single facility. Data concerning these products appear below: Products A C D B $42.30 Selling price per unit $50.00 $37.60 $ 33.50 $30.70 $ 21.00 $ 19.90 Variable manufacturing cost per unit $ 20.80 Variable selling cost per unit $2.10 $1.00 $2.40 $2.70 3.30 Milling machine minutes per unit 4.10 2.60 1.30 Monthly demand in units 1,000 4,000 3,000 3,000 The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines. How many minutes of milling machine time would be required to satisfy demand for all four products? 23,500 28,200 O 11,000 O 31,400arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License