Homework Answers
| Q1) answer : "A) Absorption costing and variable costing will produce the | ||||
| same net income if all of the units produced are sold." | ||||
| Q2) | ||||
| Absorption costing income statement: | ||||
| sales | 720000 | |||
| less:Manuf. Costs: | ||||
| DM | 318000 | |||
| DL | 88000 | |||
| V OH | 62000 | |||
| Fixed OH | 94000 | |||
| Total Manuf. Costs | 562000 | |||
| Less:FOH portion of CS | -9400 | 94000*200/2000 | ||
| COGS | 552600 | |||
| GP | 167400 | |||
| Less:Selling & Admin costs: | ||||
| VC | 32400 | |||
| Fixed | 56000 | |||
| total S&Ad costs | 88400 | |||
| NOI | 79000 | |||
| Answers: | ||||
| Cost of goods sold per unit = 552600/1800 = 307 | ||||
| Total sales : 13) $720000 | ||||
| Operating Income : $79000 | ||||
| Gross Profit : $167400 | ||||
| Total cost of goods sold= $552600 | ||||
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Question 1 (2 points) Which of the following is true regarding the absorption costing method of...
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Which of the following is true of absorption costing? It expenses marketing costs as cost of...
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Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats...
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Complete Absorption Costing vs. Variable Costing Income statements for Randeris Company, Year 1 & Year 2....
Complete Absorption Costing vs. Variable Costing Income
statements for Randeris Company, Year 1 & Year 2.
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#1 #2 Absorption-Costing Income Statement During the most recent year, Osterman Company had the following data:...
#1
#2
Absorption-Costing Income Statement
During the most recent year, Osterman Company had the following
data:
Units in beginning inventory
—
Units produced
10,000
Units sold ($47 per unit)
9,300
Variable costs per unit:
Direct materials
$9
Direct labor
$6
Variable overhead
$4
Fixed costs:
Fixed overhead per unit produced
$5
Fixed selling and administrative
$138,000
Required:
1. Calculate the cost of goods sold under
absorption costing.
$
2. Prepare an income statement using absorption
costing. Enter amounts as positive...
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Complete Absorption Costing vs. Variable Costing Income
statements for Randeris Company, Year 1 & Year 2.
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#1
#2
Absorption-Costing Income Statement
During the most recent year, Osterman Company had the following
data:
Units in beginning inventory
—
Units produced
10,000
Units sold ($47 per unit)
9,300
Variable costs per unit:
Direct materials
$9
Direct labor
$6
Variable overhead
$4
Fixed costs:
Fixed overhead per unit produced
$5
Fixed selling and administrative
$138,000
Required:
1. Calculate the cost of goods sold under
absorption costing.
$
2. Prepare an income statement using absorption
costing. Enter amounts as positive...
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