Escolar Documentos
Profissional Documentos
Cultura Documentos
R 370
2. Assume that the company uses variable costing. Compute the unit product cost for one bicycle.
R 310
2. Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
R 120,000
3. 2. Prepare an income statement for the year using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign.)
Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold R
2 2,480,00
R 4,000,000
160,000
2,640,000
1,360,000
400,000
1,000,000
R 360,000
4.
Required: Prepare a contribution format income statement for the year segmented by product lines. (Input all amounts as positive values except losses which should be indicated by a minus sign.) Product Line CD $ 300,000 120,000 180,000 138,000 $ 42,000
Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin
105,000 $ 27,000
5.
Required: 1. Determine whether the company is using absorption costing or variable costing to cost units in the Finished Goods inventory account. a. Calculate the ending balance in the Finished Goods inventory account under variable costing and absorption costing. Ending balance in Finished Good inventory account under variable costing Ending balance in Finished Goods inventory account under absorption costing b. Which costing method is the company using to cost units in the Finished Goods inventory account? Variable costing 2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders. a. Is the $85,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes? No, because variable costing is not generally accepted for external reporting. b. At what dollar amount should the 5,000 units be carried in inventory for external reporting purposes? Finished Goods inventory balance for external reporting purposes $ 100,000 $ 85,000 $ 100,000
6.
a. Compute the unit product cost. Unit product cost $ 37
b. Prepare an income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign.) Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 800,000 592,000 208,000 142,000 $ 66,000
2. Assume that the company uses variable costing: a. Compute the unit product cost. Unit product cost $ 27
b. Prepare an income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign.) Variable Costing Income Statement Sales Less: Variable expenses Variable selling expense $
2 432,000 32,000
$ 800,000
464,000
336,000
2 110,000
310,000
$ 26,000
7.
Divisions Total Company Amount % $ 600,000 100.0 300,000 50.0 East Amount $ 400,000 250,000 % 100.0 62.5 Amount $ 200,000 50,000 West % 100.0 25.0
300,000 190,000
50.0 31.7
150,000 80,000
37.5 20.0
150,000 110,000
75.0 55.0
110,000
18.3
$ 70,000
17.5
$ 40,000
20.0
60,000
10.0
$ 50,000
8.3
8.
$ 40
b. Prepare an income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign.) Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 2,100,000 1,400,000 700,000 630,000 $ 70,000
2. Assume that the company uses variable costing. a. Determine the unit product cost. Unit product cost $ 24
b. Prepare a contribution format income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign.) Variable Costing Income Statement
$ 2,100,000
910,000
1,190,000
2 560,000
1,200,000
$ -10,000