Boateng Plc is a company that produces and sells one product "Excellence". Information relating to the operations of George Plc for the first two months of 2023 are as follows: i) Excellence sells for GHC500 per unit. There were no inventories of Excellence at the end of December 2022. Other relevant information is as follows: Standard cost per unit of Excellence: Direct material and wages Variable production overhead GHC 220 30 Budgeted and actual costs per month: Fixed production overhead 990,000 Fixed selling and admin. expenses 400,000 Variable selling expenses 12.5% of sales Normal capacity 110,000 units per month Number of units produced and sold: January February Sales (units) 128,000 110,000 Production (units) 140,000 102,000 Required: Using the information above, prepare in a columnar form profit statements for January and February 2023 using: a) Marginal costing b) Absorption costing

Boateng Plc is a company that produces and sells one product "Excellence". Information relating to the operations of George Plc for the first two months of 2023 are as follows: i) Excellence sells for GHC500 per unit. There were no inventories of Excellence at the end of December 2022. Other relevant information is as follows: Standard cost per unit of Excellence: Direct material and wages Variable production overhead GHC 220 30 Budgeted and actual costs per month: Fixed production overhead 990,000 Fixed selling and admin. expenses 400,000 Variable selling expenses 12.5% of sales Normal capacity 110,000 units per month Number of units produced and sold: January February Sales (units) 128,000 110,000 Production (units) 140,000 102,000 Required: Using the information above, prepare in a columnar form profit statements for January and February 2023 using: a) Marginal costing b) Absorption costing

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method. INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022:Sales 3 200 unitsSelling price per unit R100Finished products on 01 March 2022 400 unitsProducts manufactured during the month 3 600 unitsVariable manufacturing costs per unit R26Variable selling and administrative costs per unit sold R12Fixed manufacturing costs R25 200Fixed selling and administrative costs R12 400 Additional informationThe variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March2022 was R21.60…
.a. Millat manufacturing produces two product models: Regular and Special. The following information was taken from the accounting records for the first quarter of 2020.Regular Special TotalUnits produced 80,000 20,000 100,000Material cost Rs. 320,000 Rs. 180,000 Rs. 500,000Labor cost Rs. 480,000 Rs. 140,000 Rs. 620,000Millat currently uses a traditional cost accounting system where total overhead cost is assigned to products based on the total number of units produced. Company president Michael has approached the controller Kashif, with concerns about sagging profit margins and his inability to explain competitors’ pricing of similar products. Kashif suggest that the company explore the possibility of a costing system that is based less on volume and more on identifying the consumption of resources by products. Kashif identifies the following overhead costs related to the production process:Wages and costs related to machine setups Rs. 360,000Material handling costs 480,000 Quality…
Use the information given below to prepare the Income Statement of Costa Enterprises for the year ended 31 December 2022 using the absorption costing method. Costa Enterprises commenced operations on 02 January 2022, and produces a single product that sells for R72 per unit. During 2022, 300 000 units of the product were manufactured of which 240 000 units were sold. There was no work-in-process inventory at the end of the year. Manufacturing costs and marketing and administrative costs for 2022 were as follows: Please avoid solutions in an image format thanku
Vakos Manufacturers uses the traditional approach in allocating manufacturing overheads base hours. They have provided you with the following information: E For year ended 30 December 2022: Purchases - direct materials Cost per labour hour Manufacturing Overhead rate Actual Labour hours Actual Machine hours a) b) c) Actual manufacturing overheads Selling and admin expenses Interest paid Sales Tax rate Inventories at year end: Materials Work in Process Finished Goods 205,000 6 15/mach.hr 20,000hrs 30,000hrs 440,000 400,000 40,000 2,000,000 30% 2021 2022 (E) (E) 5,000 10,000 20,000 30,000 25,000 15,000 Compute the total Applied Manufacturing Overhead costs using the rate. Compute the MO Overhead cost variance and state whether over or underapplied and how the variance would be treated. Prepare a Statement of Goods Manufactured for year ended 31 December 2022 using Actual M.O costs. Prepare the Income Statement for year ended 30 December 2022.
VXY Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P 3.00 per unit Direct labor. P 2.50 per unit Variable manufacturing overhead. P 2.00 per unit Fixed manufacturing overhead. P 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses. P 0.25 per unit Fixed SG&A expense P 75,000 per year During 2021, its first year of operations, VXY manufactured 51,000 units and sold 48,000. The selling price per unit was P25. All costs were equal to standard. 1. The volume variance under absorptoon costing is.
VXY Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P 3.00 per unit Direct labor. P 2.50 per unit Variable manufacturing overhead. P 2.00 per unit Fixed manufacturing overhead. P 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses. P 0.25 per unit Fixed SG&A expense P 75,000 per year During 2021, its first year of operations, VXY manufactured 51,000 units and sold 48,000. The selling price per unit was P25. All costs were equal to standard. 1. Based on variable costing, the income before income taxes for the year was.
Prepare the Income Statement of Rotary Limited for the year ended 28 February 2021 using the following methods of costing: 2.1 Marginal costing | 22 Absorption costing INFORMATION The following information was extracted from the accounting records of Rotary Limited for the year ended 28 February 2021: Inventory on 01 March 2020 Nil Production for the year 35 000 units Sales for the year 30 000 units Fixed costs: Manufacturing R700 000 Sales and administration R480 000 Variable costs per unit: Manufacturing R48 Sales and administration R12 Selling price per unit R150
Answer the questions from the information provided.2.1 Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method.INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022: Sales 3200 units Selling price per unit R100 Finished products on 01 March 2022 400 units products manufactured during the month 3600 units variable manufacturing costs per unit R26 variable selling and administatrive costs per units sold R12 fixed manufacturing costs R25 200 fixed selling and administractive costs R12 400 Additional informationThe variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March2022 was R21.60 and R26.20 respectively. 2.2 Use the information provided below to calculate the following manufacturing variances for March2022. Note: Each answer must state whether the variance is…
Calif Corp provided the following information during the year 2024: Sales (1200 units)) Current year's production (1,500 units) Direct materials P720,000 P100/unit Direct Labor P200/unit Manufacturing overhead (505fixed; 50% 40% of directlabor variable) Selling, general and administrative expenses Fixed P80,000 P60,000 Variable Task - Determine the operating income and ending inventories under the following: 1. Full costing 2. Variable costing 3. Throughput costing