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Variable and Absorption Costing-Service Company Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for $100. The variable and fixed cost data are as follows: Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) a. Calculate reported income for management. Do not use negative signs with any answers. Sales Cost of Goods Sold: Fixed cost (annual cost) During 2019, 4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of $90 in beginning work-in-process inventory. Beginning Inventory Variable Costs Fixed Costs Less: Ending Inventory Cost of Goods Sold Administrative expense Net Income b. Calculate reported income for the bank. Do not use negative signs with any answers. Sales AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost Cost of Goods Sold: AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost Beginning Inventory Variable Costs $25.00 $5.00 Fixed costs: $240,000 $5.00 Administrative Expense Total Fixed Cost $20,000 Absorption Costing Income Statement Net Income Variable Costing Income Statement Answer AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Answer Variable cost of goods sold AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Answer Answer AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer

Variable and Absorption Costing-Service Company Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for $100. The variable and fixed cost data are as follows: Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) a. Calculate reported income for management. Do not use negative signs with any answers. Sales Cost of Goods Sold: Fixed cost (annual cost) During 2019, 4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of $90 in beginning work-in-process inventory. Beginning Inventory Variable Costs Fixed Costs Less: Ending Inventory Cost of Goods Sold Administrative expense Net Income b. Calculate reported income for the bank. Do not use negative signs with any answers. Sales AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost Cost of Goods Sold: AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost Beginning Inventory Variable Costs $25.00 $5.00 Fixed costs: $240,000 $5.00 Administrative Expense Total Fixed Cost $20,000 Absorption Costing Income Statement Net Income Variable Costing Income Statement Answer AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Answer Variable cost of goods sold AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Answer Answer AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...
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Variable and Absorption Costing-Service Company Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for $100. The variable and fixed cost data are as follows: Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) Fixed cost (annual cost) During 2019, 4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of $90 in beginning work-in-process inventory. a. Calculate reported income for management. Do not use negative signs with any answers. Sales Cost of Goods Sold: Beginning Inventory Variable Costs Fixed Costs Less: Ending Inventory Cost of Goods Sold Administrative expense Net Income b. Calculate reported income for the bank. Do not use negative signs with any answers. Sales Cost of Goods Sold: AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost Beginning Inventory Variable Costs $25.00 $5.00 Fixed costs: $240,000 Administrative Expense $5.00 Total Fixed Cost $20,000 Absorption Costing Income Statement Net Income AnswerContribution marginGross profitLess: Ending inventory Overhead costVariableselling expense Variable Costing Income Statement AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Variable cost of goods sold AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense Answer Answer Answer AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer
Transcribed Image Text:Variable and Absorption Costing-Service Company Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for $100. The variable and fixed cost data are as follows: Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) Fixed cost (annual cost) During 2019, 4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of $90 in beginning work-in-process inventory. a. Calculate reported income for management. Do not use negative signs with any answers. Sales Cost of Goods Sold: Beginning Inventory Variable Costs Fixed Costs Less: Ending Inventory Cost of Goods Sold Administrative expense Net Income b. Calculate reported income for the bank. Do not use negative signs with any answers. Sales Cost of Goods Sold: AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost Beginning Inventory Variable Costs $25.00 $5.00 Fixed costs: $240,000 Administrative Expense $5.00 Total Fixed Cost $20,000 Absorption Costing Income Statement Net Income AnswerContribution marginGross profitLess: Ending inventory Overhead costVariableselling expense Variable Costing Income Statement AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Variable cost of goods sold AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense Answer Answer Answer AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer
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