The following information is available for SAN JOSE CORP.'s new product line: Sale price per unit Variable manufacturing cost per unit of production Total annual fixed manufacturing cost Variable administrative cost per unit Total annual fixed administrative expenses There was no inventory at the beginning of the year. Normal capacity is 12,500 units. During the year, 12,000 units were procuced and 10,000 units were sold. REQUIREMENTS: (1) What is the cost of ending inventory under direct costing and absorption costing, respectively? (2) What is the net income under direct costing and absorption costing, respectively? P 30 8. 25,000 3 15,000

The following information is available for SAN JOSE CORP.'s new product line: Sale price per unit Variable manufacturing cost per unit of production Total annual fixed manufacturing cost Variable administrative cost per unit Total annual fixed administrative expenses There was no inventory at the beginning of the year. Normal capacity is 12,500 units. During the year, 12,000 units were procuced and 10,000 units were sold. REQUIREMENTS: (1) What is the cost of ending inventory under direct costing and absorption costing, respectively? (2) What is the net income under direct costing and absorption costing, respectively? P 30 8. 25,000 3 15,000

Name: The following information is available for SAN JOSE CORP.'s new produ
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: The following information is available for SAN JOSE CORP.'s new product line:Sale price per unitVariable manufacturing cost per unit of productionTotal annual fixed manufacturing costVariable administrative cost per unitTotal annual fixed administra

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

•The material DX is used uniformly throughout the year. The data about annual requirement, ordering cost and holding cost of this material is given below: • Annual requirement: 3,400 units • Ordering cost: OMR 15 per order • Holding cost: OMR 0.70 per unit •What will be the economic order quantity (EOQ) of material DX a. 3817.254 b. 318.72 c. 381.72 d. 3187.254 ....... Answer the Question based the data given below Opening Stock 25000 Closing Stock 35000 Net purchases 130000 Manufacturing expenses 30000 What will be the inventory turnover ratio? a. 6 b. 5 c. 4.5 d. 4
BLUE INC. has provided the following data for its two most recent years of operation: Selling price per unit P90 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials P13 Direct labor P6 Variable manufacturing overhead P4 Fixed manufacturing overhead per year P224,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold P5 Fixed selling and administrative expense per year P74,000 Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 8,000 7,000 Units sold during the year 7,000 5,000 Units in ending inventory 1,000 3,000 Required: a. Assume the company uses absorption costing. Compute the unit product cost in each year. b. Assume the company uses absorption costing. Prepare an income statement for each year.
BLUE INC. has provided the following data for its two most recent years of operation: Selling price per unit P90 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials P13 Direct labor P6 Variable manufacturing overhead P4 Fixed manufacturing overhead per year P224,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold P5 Fixed selling and administrative expense per year P74,000 Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 8,000 7,000 Units sold during the year 7,000 5,000 Units in ending inventory 1,000 3,000 c. Assume the company uses variable costing. Compute the unit product cost in each year. d. Assume the company uses variable costing. Prepare an income statement for each year.
During the year, FITA Corporation produced 500 units of new products. The new product’s variable and fixed manufacturing ocst per unit were P5 and P 3, respectively. At the end of the period, the new product’s inventory consisted of 80 units. What would be the change in the peso amount of inventory at the end of the period if absorption costing were used instead of variable costing? A. 640 increase B. 400 increase C. 240 increase D. 0
Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13Direct labor $ 7Variable manufacturing overhead $ 3Fixed manufacturing overhead per year $ 480,000Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 6Fixed selling and administrative expense per year $ 84,000 Year 1 Year 2Units in beginning inventory 0 3,000Units produced during the year 12,000 10,000Units sold during the year 9,000 10,000Units in ending inventory 3,000 3,000 Which of the following statements is true for Year 2?The amount of fixed manufacturing overhead released from inventories is $24,000The amount of fixed manufacturing overhead deferred in inventories is $24,000The amount of fixed manufacturing overhead deferred in inventories is $686,000The amount of fixed manufacturing overhead released from inventories is…
The following data relates to the operation of a company over a period of two years; year 1: 12,000 units in output level, Ghc21,000 in cost with an inflation index of 1.05; year 2: 16,000 units in output level, Ghc26,750 in cost with an inflation index of 1.03. The total variable cost for 14000 units at an inflation index of 1.08 will be A. Ghc21,840 B. Ghc21,000 C. Ghc22,680 D. Ghc20,300
Alpha makes ceramic vases out of specialized clay. During July, it purchased 500 kgs of clay at $60 per kg. It started manufacture of 4,000 vases and completed 3,200 vases during the month. The remaining 800 vases are in process at the end of the month. It incurred direct labor charges of $500 and other conversion costs of $400, which included electricity costs of $200. Alpha had no beginning or ending inventory of DM (clay). It also had no beginning inventory of vases. At the end of the period, the 800 vases in progress were 100% complete for direct materials (DM) and 50% complete for conversion costs.
Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13Direct labor $ 6Variable manufacturing overhead $ 5Fixed manufacturing overhead per year $ 63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4Fixed selling and administrative expense per year $ 71,000 Year 1 Year 2Units in beginning inventory 0 3,000Units produced 9,000 7,000Units sold 6,000 7,000Units in ending inventory 3,000 3,0000 The net operating income (loss) under absorption costing in Year 2 is closest to:$118,000$41,000$47,000$146,000
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0Units produced 9,000Units sold 7,000Selling price per unit $ 47Selling and administrative expenses: Variable per unit $ 4Fixed per year $ 58,000Manufacturing costs: Direct materials cost per unit $ 10Direct labor cost per unit $ 6Variable manufacturing overhead cost per unit $ 5Fixed manufacturing overhead per year Assume that direct labor is a variable cost. $ 90,000Required: 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
The Dorset Corporation produces and sells a single product. The following data refer to the year justcompleted: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
b) The following information pertains to Chacon Inc. for last year: Beginning inventory in units Units produced Units sold 5,000 20,000 23,700 Costs per unit: RM 8.00 Direct materials Direct labor 4.00 Variable overhead 1.50 Fixed overhead* 4.15 Variable selling expenses Fixed selling and administrative expenses * Fixed overhead totals $83,000 per year. 3.00 24,300 Required: i. Calculate the cost of one unit of product under absorption costing. ii. Calculate the cost of one unit of product under variable costing. i. How many units are in ending inventory? iv. Calculate the cost of ending inventory under absorption costing. v. Calculate the cost of ending inventory under variable costing.
The normal capacity of an entity is 350 000 units per annum. The raw material cost is R220 per unit and direct labour is R250 per unit. 9. Variable production overheads are R60 per unit and fixed production overheads incurred amounts to R5 250 000. The closing balance of finished goods is 9 500 units (assume there is no opening balance). Which amount is the correct cost of sales figure if the actual production was 280 000 units for the year? 1. R145 000 000 2. R146 500 000 3. R147 422 500 4. R148 472 500