Variable Costing: The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred. To Determine: The L Company’s finished goods inventory cost on December 31 under variable costing.

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Answer 1

Question

Chapter 6, Problem 6.18E

(a)

To determine

Variable Costing:

The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

To Determine: The L Company’s finished goods inventory cost on December 31 under variable costing.

(b)

To determine

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.

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Students have asked these similar questions

A review of Plunkett Corporation's accounting records for last year disclosed the following selected Variable costs Direct materials used $ 56,000 Direct labor $179,100 Manufacturing overhead $154,000 Selling costs $108,400 Fixed costs Manufacturing overhead $267,000 Selling costs $121,000 Administrative costs $235,900 In addition, the company suffered a $27,700 uninsured factory fire loss during the year. What were Plunkett's product costs and period costs for last year

Bonita Company produced 10,200 units during the past year but sold only 8,700 of the units. The following additional information is also available: Direct materials used Direct labour incurred Variable manufacturing overhead Fixed manufacturing overhead Fixed selling and administrative expenses Variable selling and administrative expenses $88,740 34,170 22,440 46,410 (a) 69,400 10,200 There was no work in process inventory at the beginning of the year. Bonita did not have any beginning finished goods inventory either. Calculate Bonita Company's finished goods inventory cost on December 31 under variable costing. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 125.)

Kilt Company had the following information for the year: direct materials used: $1131,000 direct labor incurred: (5,350 hours) $158,000 actual manufacturing overhead incurred: $175,400 Kilt Company used a predetermined overhead rate of $44 per direct labor hour for the year and estimated that direct labor hours would total 5,885 hours. Assume the only inventory balance is an ending Work in Process balance of $17,400. How much overhead was applied during the year?

Answer 2

Question

Chapter 6, Problem 6.18E

(a)

To determine

Variable Costing:

The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

To Determine: The L Company’s finished goods inventory cost on December 31 under variable costing.

(b)

To determine

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.

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Answer 3

Question

Chapter 6, Problem 6.18E

(a)

To determine

Variable Costing:

The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

To Determine: The L Company’s finished goods inventory cost on December 31 under variable costing.

(b)

To determine

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.18E

(a)

To determine

Variable Costing:

The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

To Determine: The L Company’s finished goods inventory cost on December 31 under variable costing.

(b)

To determine

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.18E

(a)

To determine

Variable Costing:

The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

To Determine: The L Company’s finished goods inventory cost on December 31 under variable costing.

(b)

To determine

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.

Answer 6

Chapter 6, Problem 6.18E

(a)

To determine

Variable Costing:

The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

To Determine: The L Company’s finished goods inventory cost on December 31 under variable costing.

Answer 7

Chapter 6, Problem 6.18E

(a)

To determine

Variable Costing:

The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

To Determine: The L Company’s finished goods inventory cost on December 31 under variable costing.

Answer 8

(b)

To determine

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.

Answer 9

(b)

To determine

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 6 - What is meant by CVP analysis?Ch. 6 - Provide three examples of management decisions...Ch. 6 - Prob. 3Q Ch. 6 - Describe the features of a CVP income statement...Ch. 6 - The traditional income statement for Wheat Company...Ch. 6 - Prob. 6Q Ch. 6 - What is meant by the term sales mix? How does...Ch. 6 - Prob. 8Q Ch. 6 - Prob. 9Q Ch. 6 - Prob. 10Q

Solution Summary: The author explains variable costing, in which only the variable production costs such as direct material, direct cost, and variable overhead costs are included in that time period.

Videos

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.

Want to see the full answer?

Chapter 6 Solutions

Solution Summary: The author explains variable costing, in which only the variable production costs such as direct material, direct cost, and variable overhead costs are included in that time period.

Videos

Absorption Costing: The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product. To Determine: In which costing method, Company L shows a higher net income for the year.

Want to see the full answer?

Chapter 6 Solutions

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included which are associated with the manufacturing process of the product.

To Determine: In which costing method, Company L shows a higher net income for the year.