Please do not give solution in image format thanku Exercise 7-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net OperatingIncome [LO7-2]Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gameians are sold for$990. Selected data for the company's operations last year follow:Units in beginning inventoryUnits producedUnita soldUnita in ending inventoryVariable costs per unitsDirect materialsDirect laborVariable manufacturing overheadVariable selling and administrativePixed costarFixed manufacturing overheadrixed selling and administrativeSalesCost of goods soldGross marginSelling and administrative expense -Net operating income0$ 222,750180.00042,75032,625$ 12.12524022515$72,000$ 27,000The absorption costing income statement prepared by the company's accountant for last year appears below:$120$ 330$ 50$ 25Required:1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of lastyear?2. Prepare an income statement for last year using variable costing.Complete this question by entering your answers in the tabs below.Prev 3 of 7Next > Required:1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of lastyear?2. Prepare an income statement for last year using variable costing.Complete this question by entering your answers in the tabs below.Required 1 Required 2Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end oflast year?Fixed manufacturing overhead bost included in inventoryRequired 1Required 2Required 2 >Prepare an income statement for last year using variable costing.Ida CompanyVariable Costing Income Statement< Required 1000

The net income using variable and absorption costing differs due to fixed costs deferred in the…

Exercise 7-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-2] Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gameians are sold for $990. Selected data for the company's operations lest year follow Units in beginning inventory Units produced Units sold Unita in ending inventory Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costar Tixed manufacturing overhead Fixed selling and administrative 0 240 225 15 $120 $ 330 $ 50 $ 25 $ 72,000 $ 27,000

Exercise 7-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-2] Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gameians are sold for $990. Selected data for the company's operations lest year follow Units in beginning inventory Units produced Units sold Unita in ending inventory Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costar Tixed manufacturing overhead Fixed selling and administrative 0 240 225 15 $120 $ 330 $ 50 $ 25 $ 72,000 $ 27,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...

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Variable-Costing and Absorption-Costing Income Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows: During the year, Borques produced 200,000 wooden pallets and sold 204,300 at 9 each. Borques had 8,200 pallets in beginning finished goods inventory; costs have not changed from last year to this year. An actual costing system is used for product costing. Required: 1. What is the per-unit inventory cost that is acceptable for reporting on Borquess balance sheet at the end of the year ? How many units are in ending inventory? What is the total cost of ending inventory? 2. Calculate absorption-costing operating income. 3. CONCEPTUAL CONNECTION What would the per-unit inventory cost be under variable costing? Does this differ from the unit cost computed in Requirement 1? Why? 4. Calculate variable-costing operating income. 5. Suppose that Borques Company had sold 196,700 pallets during the year. What would absorption-costing operating income have been? Variable-costing operating income?
The following information pertains to Vladamir, Inc., for last year: There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is 29. Prepare an income statement using (a) variable costing and (b) absorption costing.
Exercise 6-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO6-2] Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. Selected data for the company's operations last year follow: 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 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 300 270 30 $ 140 $ 350 $ 35 $ 15 $ 69,000 $ 26,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold. Gross margin $ 245,700 203,850 Selling and administrative expense Net operating income Required: 41,850 30,050 $ 11,800 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's…
Required Information [The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 20,000 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute gross profit under absorption costing. RAMORT COMPANY Gross Profit (Absorption Costing) Sales Cost of goods sold Gross profit 1,200,000 $10 per unit $ 12 per unit $3 per unit $ 40,000 per year $ 2 per unit $ 65,200 per year $ 60 per unit
Direction: Show computations During the most recent year, Lonely Company had the following data associated with the product it makes: Units in beginning inventory Units produced Units sold (P300 per unit) Variable costs per unit: Direct Materials Direct labor Variable overhead Fixed Costs Fixed overhead per unit produced Fixed selling and administrative expense Required: 8,000 P 100 P 50 P 25 10,000 P 50 P100,000 Using the Variable costing, compute the product cost per unit. • What is the value of ending inventory under Variable costing? • What is the value of ending inventory under Absorption costing? Compute the net income under Absorption costing.
Required information [The following information applies to the questions displayed below] Barnes Company reports the following for its product for its first year of operations Direct materials Direct labor s 35 per unit Variable overhead 5 25 per unit $10 per unit Fixed overhead Variable selling and administrative expenses $ 48,000 per year $3 per unit Fixed selling and administrative expenses $ 20,000 per year The company sells its product for $150 per unit. Compute gross profit using absorption costing assuming the company (al produces and sells 2,000 units and (b) produces 2,400 units and sells 2,000 units. Answer is not complete. (a) 2,000 Units Produced and 2.000 Units Sold (0)2,400 Unit Produced and 2,000 Units Sold Gross profit using absorption costing Sales Cost of goods sold Gross profit 00
Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing.
Trend Reporting for Non-Value-Added Costs Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving Receiving orders 12,000 24,000 $21 Assembly Labor hours 99,000 120,000 15 Expediting Orders expedited 0 8,000 50 Storing Number of units 0 16,000 7 Assume that at the beginning of 20x2, Cicleta trained the assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting…
5 Required information [The following information applies to the questions displayed below.] Chuck Wagon Grills, Incorporated, makes a barbecue grill it sells for $210. Data for last year's operations follow: 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 Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 0 24,000 21,000 3,000 $ 50 80 20 10 $ 160 $ 840,000 315,000 $ 1,155,000 Required: 1. Assume the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume the company uses variable costing. Prepare a contribution format income statement for last year. 3. How many barbecue grills must be sold to break even?
Required information [The following information applies to the questions displayed below.] Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: 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 Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 0 20,000 19,000 1,000 $ 50 80 20 10 $ 160 $ 700,000 285,000 $ 985,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year. 3. What is the company's break-even point in terms of the number of barbecue grills sold? Complete this question by entering your…
Problem 7-16 (Algo) Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing, Incorporated Income Statement $ 1,710,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,239,745 470,255 570,000 $ (99,745) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 $ 400,700 $ 120,500 T500 $ 162,600 $ 42,900 Total $ 563,300 163,400 513,045 $…
ces Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. Selected data for the company's operations last year follow: 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 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 65,000 $ 29,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 227,700 186,300 41,400 34,750 $ 6,650 0 250 230 20 $145 $365 $40 $25 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing. Complete this…