CARAMEL Inc. manufactures three joint products. The following production data were provided by CARAMEL Inc. for the current period: Product Name Units Produced XXN Z 1,000 2,000 3,000 Additional Processing Final Selling Price Cost after Split Off P20,000 10,000 30,000 Joint product costs for the current period were as follows: Raw materials Direct labor Factory overhead P10,000 15,000 25,000 P50 10 30 The company uses the net realizable value method for allocating joint costs. 8. What is the Gross profit/(loss) on the sale of all X products?
Q: Olivia sells bookshelves and small tables. It takes 1.25 hours to build a bookshelf and .9 hours to…
A: Variable Cost :— It is the cost that changes with change in unit of cost driver. Variable cost per…
Q: Misty Mountain Outfitters is a merchandiser of specialized fly fishing gear. Its cost of goods sold…
A: The question is based on the concept of Cost Accounting. The average number of days to sell…
Q: 66,000 Year ended 30 June 2018 87,000 Dee commenced in self-employment on 6 April 2014. She…
A: To calculate the trading income assessments of Ae, Bee, and Cae for each of the tax years 2015-16,…
Q: Q3. The information below was derived from the 2018 records of HCS Company: Month Units…
A: High-low method of analysis Variable Cost Per Unit = (Highest Activity Cost – Lowest Activity Cost)…
Q: cost of goods manufactured
A: An under applied or over applied manufacturing overhead means that the overhead amount applied in…
Q: Bettie Corporation uses a weighted-average process costing system to collect costs related to…
A: Process costing is an accounting technique typically used by companies that produce identical or…
Q: 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed…
A: INTRODUCTION Present value means the value of future cash flows at the present date. Future value…
Q: Question 3. Karlin Company gathered the following reconciling information in preparing its April…
A: A document known as a bank reconciliation statement compares the cash balance on a company's balance…
Q: Milo Clothing experienced the following events during Year 1, its first year of operation: 1.…
A: Disclaimer : As per the above question, we have solved Req C only Introduction : A trial…
Q: George gives £10,000 cash to his son. Indicate whether the following statement is True or False.…
A: The tax that is levied on capital gains is termed as capital gain tax. Such taxes are levied when an…
Q: A taxpayer has a son, who the taxpayer claims as a dependent and who attended college this past…
A: As per IRS, for claiming a deduction of a dependent child, the taxpayer must be supporting that…
Q: The tax rules for determining business income are identical to those used for determining property…
A: Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…
Q: Bernadette files as head of household and claims her two children, both under age 16. Her 2021 AGI…
A: The term "tax credit score" refers to an amount of cash that taxpayers can subtract at once from the…
Q: On March 1, 2021, Gold Examiner receives $150,000 from a local bank and promises to deliver 95 units…
A: Journal entry is the primary step to record the transaction in the books of accounts. The increase…
Q: The average cost of AD computer modems on 30 March, as per the stock card, is $21.06. If 200 modems…
A: Weighted Average Method :— It is one of the method of inventory valuation in which average cost per…
Q: E17-21. Outsourcing (Make-or-Buy) Decision Assume a division of HP Inc. currently makes 50,000…
A: Cost to manufacture = 50,000 circuit boards × $50 = $250,000
Q: Northern Washington Lumber Company grows, harvests, and processes timber for use as building lumber.…
A: INTRODUCTION: WIP costs unfinished items in the manufacturing process, including labor, raw…
Q: Required information [The following information applies to the questions displayed below.] Bergo…
A: Factory overhead It is the costs incurred during the manufacturing process and not including the…
Q: Please answer Problem 10-16. Reccomend which of the above bonds you should buy. Justify your choice…
A: Introduction Cash flow is the actual quantity of funds and cash equivalents flowing into and going…
Q: Haffner Corporation uses the weighted-average method in its process costing system. Data concerning…
A: The practice of checking records to ensure that project expenses match current project activities is…
Q: A professional photographer who specializes in wedding-related activities paid $45,000 for equipment…
A: Break-even describes the point at which the connected value of variables becomes zero, such as in…
Q: The following information is available concerning Ambot Corp.’s expected result in 2020: Total…
A: Income Statement :— It is one of the financial statement that shows profitability of company during…
Q: ABC Company purchased equipment on May 1, 2021 costing $1,000,000. Its estimated salvage value is…
A: Lets understand the basics. In straight line basis, depreciation is calculated in equal installment…
Q: What are the five important accounting principles that company follow when writing their financial…
A: Answer The five important accounting principles that company follow when writing their financial…
Q: Far, Get, and Hog Corporations own 60 percent, 25 percent, and 15 percent, respectively, of the…
A: A joint venture is a commercial arrangement in which perhaps two or more parties pool their…
Q: Show Me How I of Upe Issuing Bonds at a Premium On the first day of the fiscal year, a company…
A: A bond issuance premium is produced when a bond is issued for a sum that is more than its principle.…
Q: Q3. From the information given, prepare a statement of retained earnings. | ABC corporation had an…
A: Net income :— It is the difference between total revenue and total expenses. Statement of…
Q: Net Solutions purchased 200 units of Commodity 30 on account for $15 each FOB shipping point, credit…
A: Oct 21 Debit Accounts Payable (200 units x $15) = $3,000 Credit Inventory (200 units x $15) =…
Q: Is the following statement correct regarding exclusions or deductions? Cancellation of debt for a…
A: Cancellation of debt for a taxpayer's credit card bill is not a deduction from federal gross income.…
Q: Flannigan Company manufactures and sells a single product that sells for $450 per unit: variable…
A: Target profit would be the level of income that a company's managers anticipate to earn by the…
Q: Select all that apply. Which of the following clients would qualify for special pricing? All clients…
A: Introduction The gross amount of all payment transactions is included on Form 1099-K, regardless of…
Q: A. ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary)…
A: INTRODUCTION: Common stock is a type of stock that permits its holders to vote at shareholder…
Q: On the first day of the fiscal year, a company issues a $3,200,000, 7%, 4-year bond that pays…
A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…
Q: If inventory prices are rising the method of inventory valuation that gives the highest profit and…
A: When creating their financial accounts, businesses utilize inventory valuation as a method of…
Q: Andrews Corporation uses a process costing system for manufacturing. The following information is…
A: Direct materials are those materials and supplies that are consumed during the manufacture of a…
Q: According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, an entity must…
A: The conditions under which it may be appropriate to change accounting policy in accordance with IAS…
Q: 4) Explain if, and why an accountant will be held liable to: its client, to 3rd party intended…
A: An accountant owes it to their clients to use sound professional judgement. According to the Revised…
Q: Ms. Shanti receives a salary of RM 10,000 per month as a communication executive with RK Management…
A: Gross income refers to the income of the individual or gross pay which states the aggregate earnings…
Q: Sonic Inc. Production Budget For the Month Ending June 30 Total units available Total units to be…
A: Sales budgets seem to be budgetary plans which forecast the overall revenue that a business tends to…
Q: Q2. Provide an example of each title here and then record the journal entries. Following the first…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: At December 31, 2020, the end of its first year of operations, the non-trading securities for Oriole…
A: A journal entry is used to record a business in the company's accounting records. A journal entry…
Q: Kindly make a thorough analysis or explanation of this ho
A: Balance sheet shows the financial position of the company. It includes the assets, liabilities, and…
Q: Company X Company Y Company Z Cost of goods sold $4,590,000 $9,292,500 $7,098,000 Inventory $674,000…
A: Cost of Goods Sold (COGS) measures the “direct cost” incurred in the production of any goods or…
Q: What is the effect of bad debts on revenue recognition? a. Bad debts must be of a remote likelihood…
A: As per IAS/IFRS 15 Revenue From contract with customers, A Bad debt is an uncollectible accounts…
Q: 2. Compute income tax payable by Mr. DD for year 2022 if he avails of the 40% optional standard…
A: The Optional standard deduction enables assessee to show 40% of his gross income as an expense and…
Q: Your company sells equipment for $85. The equipment was listed at $100 on your company's Balance…
A: Noncash expenses are business expenses that do not require the expenditure of cash. Noncash expenses…
Q: statement of cash flow-
A: A cash flow statement is essentially a financial statement that presents aggregate info regarding…
Q: A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per month…
A: Margin of Safety = Current Sales - Break Even Sales and Break Even sales = Fixed Cost /…
Q: Which of the following adjusting entries involves accrued expenses? A To record wages expenses…
A: The company does many financial transactions. All financial transactions should be recorded in…
Q: Account Title Cash Accounts Receivable Interest Receivable Merchandise Inventory Estimated Returns…
A: An income statement is just a type of financial statement that details the profits and losses of a…
Step by step
Solved in 2 steps with 2 images
- Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions a. Total product cost b. Total period cost Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing…The following particulars are extracted from the records of a company. Product A Product B Sales (per unit) RO. 100 RO. 120 Consumption of material Material cost 2 kg 3 kg RO. 10 RO. 15 Direct wages cost RO. 15 RO. 10 Direct expenses RO. 5 RO. 6 Machine hours used 3 Overhead expenses: Fixed 10 Variable 15 20 Direct wage per hour is RO.5. Comment on the profitability of each product (both use the same raw material) when: (i) Total sales potential in units is limited Production capacity (in terms of machine hours) is the limiting factor. Material is in short supply (ii) (iv) Sales potential in value is limited.Accounting records for The Ralston Company show the following for the most recent fiscal year. Units produced and sold Total revenues and costs Sales revenue Direct materials costs Direct labor costs Variable manufacturing overhead Fixed manufacturing overhead Variable marketing and administrative costs Fixed marketing and administrative costs Required: a. Prepare a gross margin Income statement. b. Prepare a contribution margin Income statement. Required A Required B Complete this question by entering your answers in the tabs below. Prepare a gross margin income statement. Gross Margin Income Statement 59,500
- A Company has a single production process and it manufactures three products A, B and C by same pant & same process. The overheads & relevant costs drivers for a period are as follows: Data for the period: Fashed goods in units. Raw materiais required per unit of output Orect labor hour per unit of output.. Machine hour per unit of output.. Ne of production runs per product.. cost Short-term-variable are expenses Set-up-cost... Serial handling cost Products Activities A 7,000 4kg 14 Cost drivers Machine hours Direct labor hours Production runs Qty of materials (kgs.) Total B 5,000 3kg 3 10 C 3,000 2kg 3 2 Overheads(Rs.) 58,800 66,600 24,000 29,400 Rs.1,78,800 Required: Overheads per unit under: Machine hour rate b. Activity based costing Ans. a. Rs. 14.596 per unit, Rs. 10.947 per unit, Rs. 7.298 per unit b. Rs. 13.3 per unit, Rs. 12.4 per unit, 7.9 per unit Cor under:The following particulars are extracted from the record of a company. Product A Product B ( Per unit) ( Per unit) Selling price (Rs.) Consumption of raw materials (Kg) Direct Wages Cost (Rs.) Direct Expenses(Rs.) 100 120 2 3 15 10 5 6. Overhead Expenses Fixed (Rs.) Variable (Rs,) 10 15 20 Raw material cost per Kg is Rs. 5/=. Assume raw materials as the limiting factor, availability of which is 10,000 Kg per month. If maximum sales potential of each product is 3,500 units per month, find out the product mix which will maximize the company profit. Also, determine the profit that will be earned at the above product mix.Case: 1 The following particulars are extracted from the records of a company. Particulars Product A Product B OMR 120 3 kg OMR 15 Sale price per unit Consumption of material Material cost Direct labour cost Direct expenses Machine hours used Fixed overheads per unit Variable overheads per unit OMR 100 2 kg OMR10 15 10 3 OMR 5 OMR 10 15 20 Direct labour per hour is OMR 5. Comment on the profitability of each product [both use same raw material] when, I] total sales potential in units is limited II] total sales potential in value is limited I) raw material is in short supply IV) production capacity [in terms of machine hours] is limited. Assuming raw material as the key factor, availability of which is 10,000 kg and maximum sales potential of each product being 3500 units, find out the product mix which will yield maximum profits.
- The following information is available for a manufacturing company which produces multiple products: The product mix ratio Contribution to sales ratio for each product General fixed costs Method of apportioning general fixed costs Which of the above are required in order to calculate the break-even sales revenue for the company?T-Account Analysis of Cost Flows Selected T-accounts of Moore Company are given below for the just completed year: Required: 1. What was the cost of raw materials used in production during the year? 2. How much of the materials in (1) above consisted of indirect materials? 3. How much of the factory labor cost for the year consisted of indirect labor? 4. What was the cost of goods manufactured for the year? 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer. 6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $8,000 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?The following particulars are extracted from the records of a company. Particulars Product A Product B Sale price per unit |Consumption of material Material cost OMR 100 OMR 240 4 kg 6 kg OMR20 OMR 30 Direct labour cost 30 20 Direct expenses 10 12 Machine hours used 6. 4 Fixed overheads per unit Variable overheads per unit OMR 10 OMR 20 30 40 Direct labour per hour is OMR 10. Comment on the profitability of each product [both use same raw material] when, I] total sales potential in units is limited II] total sales potential in value is limited II] raw material is in short supply IV} production capacity [in terms of machine hours] is limited. Assuming raw material as the key factor, availability of which is 20,000 kg and maximum sales potential of each product being 7000 units, find out the product mix which will yield maximum profits.
- Dobosh Corporation has provided the following information: Cost per Unit $ 7.65 $ 4.25 $ 2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling andadministrative expense $ 2.10 $ 1.15 Cost per Period $ 132,600 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 9,240 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 9,240 units? c. If 10,000 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. d. If 10,240 units are sold, what is the total amount of variable costs related to the units sold? a. Total product cost b. Total period cost c. Variable cost per unit sold d. Total variable costs $ 51,450 e. If 10,240 units are produced, what is the total amount of manufacturing overhead cost incurred? f. If the selling price is…Asplund Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Unit $ 6.95 Cost per Period $ 3.60 $ 2.00 $ 20,800 $ 1.50 $ 0.45 $ 8,900 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,280 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,280 units? a. Total product cost b. Total period costWhich of the following statements is correct using the direct costing concept? a. All manufacturing costs are included in the calculation of cost of goods manufactured. b. All manufacturing costs are considered period costs. c. Only variable manufacturing costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs. d. Only fixed costs are included in the calculation of cost of goods manufactured while variable costs are considered period costs. Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%.The residual income for Mason is a. $1,500 b. $0 c. $84,150 d. $(6,000)