all 72%7:15 PMQ1Moona Inc. produces Mobile phones. Information of the company's operations last year appearbelow:Fixed cost:Fixed Manufacturing overheadFixed Selling & Administrative40,000Rs 60,000RsSelling Price per unitRs 100Variable cost per unit:Direct MaterialsDirect laborVariable Manufacturing overheadVariable Selling & AdministrativeRs 30Rs 10Rs 5Rs 2Units In beginning InventoryUnits ProducedUnits Sold20001900Required:a. Compute the unit product cost under both absorption and variable costinab. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using varnable costingd. Prepare a report reconciling the difference in net operating income between absorption andvariable costing for the year.

Name: all 72%7:15 PMQ1Moona Inc. produces Mobile phones. Information of the
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: all 72%7:15 PMQ1Moona Inc. produces Mobile phones. Information of the company's operations last year appearbelow:Fixed cost:Fixed Manufacturing overheadFixed Selling & Administrative40,000Rs 60,000RsSelling Price per unitRs 100Variable cost per unit

Note : Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Business

Finance

a. Compute the unit product cost under both absorption and variable costina b. Prepare an income statement for the year using absorption costing c. Prepare a contribution format income statement for the year using vanable costing d. Prepare a report reconciling the difference in net operating income between absorption and variable coasting for the year.

a. Compute the unit product cost under both absorption and variable costina b. Prepare an income statement for the year using absorption costing c. Prepare a contribution format income statement for the year using vanable costing d. Prepare a report reconciling the difference in net operating income between absorption and variable coasting for the year.

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

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

See similar textbooks

Similar questions

Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Q1. Zingling Inc produces only product and following information relates to the recent month of operation: Selling price |Units in inventory Units produced Units sold Units in inventory $121 000 units 4300 units 4000 units 300 units Variable cost per unit: Direct Materials | Direct Labor Variable manufacturing overhead Variable selling and administrative $44 $35 $7 $5 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $34400 $72000
20 01:05:03 Mc Graw Hill Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit $ 200 $ 76 $ 50 $ 10 $ 8 Multiple Choice Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? $ 291,000 The absorption costing net operating income will be lower than the variable costing net operating income by $29,100. The absorption costing net operating income will be lower than the variable costing net operating income by $101,100. The absorption costing net operating income will be higher than the variable costing net operating income by $29,100. The absorption costing net operating income will be higher than the variable costing net operating income by $101,100. Prev 20 of 25 Next >
Subject: Cost management & accounting Question No. 3: Absorption and Marginal CostingThe Dorset Corporation produces and sells a single product. The following data refer to the year just completed:Beginning inventory 0Units produced 10,000Units sold 8,000Selling price per unit $50Selling and administrative expenses:Variable per unit $5Fixed per year $60,000Manufacturing costs:Direct materials cost per unit $10Direct labor cost per unit $6Variable manufacturing overhead cost per unit $5Fixed manufacturing overhead per year $80,000Assume that direct labor is a variable cost.Required:a. Prepare an income statement for the year using absorption costing and variable costingb. Reconcile the absorption costing and variable costing net operating income figures
Saved Help Save & Exit TB MC Qu. 6-49 (Algo) A manufacturing company that.. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense 4,600 4,500 100 $ 53 $ 55 $ 18 $16 $96,600 $45,000 What is the variable costing unit product cost for the month? Multiple Choice $135 per unit 4 of 25 Next m < Prev
Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Using absorption costing, what is the company's unit product cost? Multiple Choice $176 $146 $166 $ 84 $ 50 $ 12 $ 300,000 D
Q.no.1 The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0 Units produced 9,000 Units sold 7,000 Selling price per unit $ 47 Selling and administrative expenses: Variable per unit $ 4 Fixed per year $ 58,000 Manufacturing costs: Direct materials cost per unit $ 10 Direct labor cost per unit $ 6 Variable manufacturing overhead cost per unit $ 5 Fixed manufacturing overhead per year $ 90,000 Assume that direct labor is a variable cost. Required: a) Prepare an income statement for the year using absorption costing b) Prepare an income statement for the year using variable costing c) Reconcile the absorption costing and variable costing net operating income figures
Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. For financial accounting purposes, what is the total amount of perlod costs incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units? 1. Total amount of product costs 2. Total amount of period costs incurred 3. Total amount of product costs 4. Total amount of period costs
Meginnis orporati elevant ange f ctivity s ,000 nits o ,000 nits. hen t roduces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufactu overhead $ 1.65 2.60 Fixed manufacturing overhead Fixed selling expense 0.50 Fixed administrative expense $ 0.40 $ 1.50 Sales commissions Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: %24 %24
t 0 ences Mc Graw Hill Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Break even point $ 25 $ 20 The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing…
Question No. 4: Absorption and Marginal Costing The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0 Units produced 9,000 Units sold 7,000 Selling price per unit $ 47 Selling and administrative expenses: Variable per unit $ 4 Fixed per year $ 58,000 Manufacturing costs: Direct materials cost per unit $ 10 Direct labor cost per unit $ 6 Variable manufacturing overhead cost per unit $ 5 Fixed manufacturing overhead per year $ 90,000 Assume that direct labor is a variable cost. Required: Prepare an income statement for the year using absorption costing Prepare an income statement for the year using variable costing Reconcile the absorption costing and variable costing net operating income figures
QUESTION TWO Makati Plc makes and sells a number of products. Estimated data for the forthcoming period is as follows: i) Product Data Production/Sales(units) Total direct material cost Total direct labour cost Product A 5,000 ZMW'000 80 40 Product B 10,000 ZMW'000 300 100 Other Products 40,000 ZMW'000 2,020 660 ii) Overhead costs are ZMW1, 500,000 of which 40% is related to the acquisition, storage and use of direct materials and 60% is related to the control and use of direct labour. iii) It is current practice in Makati Plc to absorb overhead costs into product units using overall companywide percentages on direct material cost and direct labour cost as the absorption bases. iv) Market prices for products A and B are ZMW 75 and ZMW 95 per unit respectively. Required: Prepare estimated unit product costs for Product A and Product B where overhead costs are charged to product units using the existing absorption basis as detailed above. Calculate the contribution for product A and B.