Ex.8: The following data were extracted from a records an industrial company in 31/12/2005: 1- Beginning finished goods inventory 500 units, Ending finished goods inventory 1000 units, Production volume 2500 units. 2- Variable cost per unit: - Direct manufacturing $50, Manufacturing overhead $25, Marketing $15. 3- Total fixed costs: - Manufacturing overhead $100000, Marketing $50000, Administrative $150000. 4- In the year 2006, the production will increase to became 3000 units, and the sales volume will be 3500 units at selling price $200 per unit. Required: - Prepare the costs & income statements according to the full & variable costing methods for the year 2006.

Ex.8: The following data were extracted from a records an industrial company in 31/12/2005: 1- Beginning finished goods inventory 500 units, Ending finished goods inventory 1000 units, Production volume 2500 units. 2- Variable cost per unit: - Direct manufacturing $50, Manufacturing overhead $25, Marketing $15. 3- Total fixed costs: - Manufacturing overhead $100000, Marketing $50000, Administrative $150000. 4- In the year 2006, the production will increase to became 3000 units, and the sales volume will be 3500 units at selling price $200 per unit. Required: - Prepare the costs & income statements according to the full & variable costing methods for the year 2006.

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?
8. complete the following table to determine what are the total costs to account for if a company’s beginning inventory had $231,432 in materials, $186,450 in conversion costs, and added direct material costs ($4,231,392), direct labor ($2,313,392), and manufacturing overhead ($1,156,696)? PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). If no dollar amount is needed for that space, please enter "$0" with no quotation marks. Material Costs Conversion Costs Total Costs Beginning work in process ? ? x Added: ? ? x Direct materials ? ? x Direct labor ? ? x Manufacturing overhead ? ? x Total Costs ? ? ?
Question 5: The Information below is taken from production department of Salalah Company for August: The number of units produced is 20000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost Total labor cost 800000 500000 110000 Manufacturing Overhead 100000 40000 Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y = f+ yvX. D. Assume Salalah intends to produce 30000 units next month. Calculate total production costs for the month (Ctrl) -
Cost Flow Relationships The following information is available for the first year of operations of Engle Inc., a manufacturer of fabricating equipment: $819,700 221,300 73,800 30,300 13,900 418,000 904,900 30,300 Sales Gross profit Indirect labor Indirect materials Other factory overhead Materials purchased Total manufacturing costs for the period Materials inventory, end of period Using the above information, determine the following missing amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost
2.1 Prepare the Income statement of Cambridge Manufacturers for the year ended 31 March 2021 using the absorption costing method. INFORMATION The following information was extracted from the accounting records of Cambridge Manufacturers for the year ended 31 March 2021: Inventory on 01 April 2020 1 000 units Production for the year 30 000 units Sales for the year (at R240 per unit) 25 000 units Costs: Direct materials cost per unit R60 Direct labour cost per unit R36 Variable manufacturing overheads cost per unit R24 Variable selling and administrative costs per unit sold R12 Fixed manufacturing overhead cost R696 000 Fixed selling and administrative cost R303 200 Additional information The total manufacturing costs per unit for the year ended 31 March 2020 amounted to R130, comprising R110 for variable manufacturing costs and R20 for fixed manufacturing costs. The total selling and administrative costs per unit for the same period amounted to R10. The first-in-first out method of…
6. The following cost relate to XYZ Corp for the year:Sales commission expenses P 185,000Direct materials 215,000Conversion cost 435,000Factory overhead 190,000 (40% of which is fixed)What is the TOTAL MANUFACTURING (PRODUCT) COSTS?
Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? ? Total labor cost ? 400000 100000 Manufacturing Overhead 90000 30000 ? Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y = f + vX. D. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month Question 6: Find the missing information for different companies Output (units) Fixed Costs Variable Costs Total Costs Cost per unit Company A 4000 70000 50000 ? ? Company B 5000 80000 ? 140000 ? Company C 8000 30000 130000 ? ? Company D ? ? 80000 100000 20
Question 5: The Information below is taken from production department of Şalalab Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? ? Total labor cost 400000 100000 Manufacturing Overhead 90000 30000 Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y =f+vX. D. Assume Şalalab intends to produce 10000 units next month. Calculate total production costs for the month
3. Prepare a Statement of Cost of Goods Manufactured and Sold for the given problem. The following data are provided by the controller of Liwasan Corporation for the year 2020: Cash, P480,000 Accounts Receivable, 696,000 Finished Goods Inventory, beg., 108,400 Finished Goods Inventory, end., 132,000 Work in Process Inventory, beg., 59,600 Work in Process Inventory, end., 77,600 Raw Materials Inventory, beg., 176,000 Raw Materials Inventory, end., 128,000 Raw Material Purchases, 732,000 Sales Discounts, 16,000 Factory Overhead (excluding depreciation), 936,000 Marketing and Administrative Expenses (excluding depreciation), 688,400 Depreciation (90% manufacturing, 10% marketing and administrative expenses), 232,000 Sales, 3,688,000 Direct Labor, 1,047,200 Freight on raw materials purchased, 13, 200 Rental Income, 128,000 Interest on Notes Payable, 32,000
Compute cost of goods manufactured and cost of goods sold from the following amounts, using the equation method. Beginning of Year $22,000 38,000 18,000 End of Year Direct materials inventory Work in process inventory Finished goods inventory Purchases of direct materials $26,000 30,000 23,000 75,000 82,000 Direct labour Manufacturing overhead 39,000
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.
The following particulars are extracted from the records of a company. Particulars Product A Product B Sale price per unit OMR 100 OMR 240 Consumption of material 4 kg 6 kg Material cost OMR20 OMR 30 Direct labour cost 30 20 Direct expenses 10 12 Machine hours used 6 4 Fixed overheads per unit OMR 10 OMR 20 Variable overheads per unit 30 40 Direct labour per hour is OMR 10. Comment on the profitability of eachproduct [both use same raw material] when, I] total sales potential in unitsis limited II] total sales potential in value is limited III] raw material is in short supply IV} production capacity [in terms of machine hours] is limited.Assuming rawmaterial asthe key factor, availability of which is 20,000 kg andmaximumsales potential of each product being 7000 units, find out the product mix which will yield maximum profits.