Homework Answers
rate positively ..
| Ans1) | |||||||
| Income statement 1 is based on the variable costing method | |||||||
| Because cost of goods sold under option 1 is lower. | |||||||
| Ans2) | |||||||
| Product was GREATER THAN sales for the month | |||||||
| This is bacause profit under absorption costing is higher. This means production is greater than sales. |
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Exercise 17.32 On your way to a meeting with the board of directors, your assistant provides...
On your way to a meeting with the board of directors, your assistant provides you with...
On your way to a meeting with the board of directors, your assistant provides you with last month's income statements-one based on the variable costing method and one based on the absorption costing method. Unfortunately, your assistant, who is new, has used absorption costing terminology for both income statements. Sales Cost of goods sold Other expenses Net income Income Statement 1 $8,604 $3,013 4,152 7,165 $1,439 Income Statement 2 $8,604 $4,028 3,125 7,153 $1,451 Which income statement is based on...
Exercise 17.31 Inventory data for a manufacturing firm for the month of January follows. One set...
Exercise 17.31 Inventory data for a manufacturing firm for the month of January follows. One set of figures is based on variable costing and the other set is based on absorption costing. Balance Sheet Balance Sheet Inventory, January 1 Inventory, January 31 $18,580 8,240 $36,670 17,170 Which balance sheet is based on the absorption costing method? Balance sheet is based on the absorption costing method. LINK TO TEXT During January, was production equal to, greater than, or less than sales...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc, assembles and sells snowmobile engines. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc, assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: $600,000 Sales (2,000 units) Production costs (2,400 units): Direct materials Direct labor $300,000 115,200 43,200 21,600 Variable factory overhead Fixed factory overhead 480,000 Selling and administrative expenses: Variable selling and administrative expenses $50,000 22,000 Fixed selling and administrative expenses 72,000...
Ned's Entrees produces frozen meals, which it sells for $ 10 each. The company uses the...
Ned's Entrees produces frozen meals, which it sells for $ 10 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: LOADING...(Click the icon to view the data.) Requirements 1. Compute the product cost per meal produced under absorption costing...
Absorption and variable costing income statements Spaulding Manufacturing Co. has determined the cost of manufacturing a...
Absorption and variable costing income statements Spaulding Manufacturing Co. has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year $ 5 Direct materials.. Direct labor Variable factory overhead............ Fixed factory overhead............ Total cost.. Operating statistics for March and April include the following $15 March April Units produced...................... 12,000 8,000 Units sold.......... 8,000 12,000 Selling and administrative expenses (all fixed).. $12,000 $12,000 The selling price is $20 per unit. There...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells snownmobile engines. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells snownmobile engines. The company began operations on August 1 and operated at 100 % of capacity during the first month. The following data summarize the results for August: Sales (2,000 units) $600,000 Production costs (2,400 units): Direct materials $300,000 Direct labor 115,200 Variable factory overhead 43,200 Fixed factory overhead 21,600 480,000 Selling and administrative expenses: Variable selling and administrative expenses $50,000 Fixed selling and administrative expenses 22,000...
Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile...
Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (4,000 units) $2,600,000 Production costs (4,350 units): Direct materials $1,218,000 Direct labor 522,000 Variable factory overhead 87,000 Fixed factory overhead 130,500 1,957,500 Selling and administrative expenses: Variable selling and administrative expenses $60,000 Fixed selling and administrative expenses...
Income statements under absorption costing and variable costing Gallatin County Motors Inc. assembles and sells snowmobile...
Income statements under absorption costing and variable costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (3,500 units) $2,590,000 Production costs (4,000 units): Direct materials $1,272,800 Direct labor 547,200 Variable factory overhead 89,200 Fixed factory overhead 140,000 2,049,200 Selling and administrative expenses: Variable selling and administrative expenses $63,500 Fixed selling and administrative expenses...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (18,000 units) $2,880,000 Production costs (23,000 units): Direct materials $1,361,600 Direct labor 653,200 Variable factory overhead 326,600 Fixed factory overhead 218,500 2,559,900 Selling and administrative expenses: Variable selling and administrative expenses $396,800 Fixed selling and administrative expenses 153,600 550,400...
Louie's Meals produces frozen meals, which it sells for $8 each. The company uses the FIFO...
Louie's Meals produces frozen meals, which it sells for $8
each. The company uses the FIFO inventory costing method, and it
computes a new monthly fixed manufacturing overhead rate based on
the actual number of meals produced that month. All costs and
production levels are exactly as planned. The following data are
from the company's first two months in business:
(Click the icon to view the data.)
Data Table
January
February
Sales. . . . . . . . ....
On your way to a meeting with the board of directors, your assistant provides you with last month's income statements-one based on the variable costing method and one based on the absorption costing method. Unfortunately, your assistant, who is new, has used absorption costing terminology for both income statements. Sales Cost of goods sold Other expenses Net income Income Statement 1 $8,604 $3,013 4,152 7,165 $1,439 Income Statement 2 $8,604 $4,028 3,125 7,153 $1,451 Which income statement is based on...
Exercise 17.31 Inventory data for a manufacturing firm for the month of January follows. One set of figures is based on variable costing and the other set is based on absorption costing. Balance Sheet Balance Sheet Inventory, January 1 Inventory, January 31 $18,580 8,240 $36,670 17,170 Which balance sheet is based on the absorption costing method? Balance sheet is based on the absorption costing method. LINK TO TEXT During January, was production equal to, greater than, or less than sales...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc, assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: $600,000 Sales (2,000 units) Production costs (2,400 units): Direct materials Direct labor $300,000 115,200 43,200 21,600 Variable factory overhead Fixed factory overhead 480,000 Selling and administrative expenses: Variable selling and administrative expenses $50,000 22,000 Fixed selling and administrative expenses 72,000...
Absorption and variable costing income statements Spaulding Manufacturing Co. has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year $ 5 Direct materials.. Direct labor Variable factory overhead............ Fixed factory overhead............ Total cost.. Operating statistics for March and April include the following $15 March April Units produced...................... 12,000 8,000 Units sold.......... 8,000 12,000 Selling and administrative expenses (all fixed).. $12,000 $12,000 The selling price is $20 per unit. There...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells snownmobile engines. The company began operations on August 1 and operated at 100 % of capacity during the first month. The following data summarize the results for August: Sales (2,000 units) $600,000 Production costs (2,400 units): Direct materials $300,000 Direct labor 115,200 Variable factory overhead 43,200 Fixed factory overhead 21,600 480,000 Selling and administrative expenses: Variable selling and administrative expenses $50,000 Fixed selling and administrative expenses 22,000...
Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (4,000 units) $2,600,000 Production costs (4,350 units): Direct materials $1,218,000 Direct labor 522,000 Variable factory overhead 87,000 Fixed factory overhead 130,500 1,957,500 Selling and administrative expenses: Variable selling and administrative expenses $60,000 Fixed selling and administrative expenses...
Louie's Meals produces frozen meals, which it sells for $8
each. The company uses the FIFO inventory costing method, and it
computes a new monthly fixed manufacturing overhead rate based on
the actual number of meals produced that month. All costs and
production levels are exactly as planned. The following data are
from the company's first two months in business:
(Click the icon to view the data.)
Data Table
January
February
Sales. . . . . . . . ....
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