QUESTIONS A. Compute for the ending Finished Goods Inventory under Absorption costing B. Compute for the Ending Finished Goods Inventory under Variable Costing method
Q: Product costs are expensed Group of answer choices When the product unit cost is calculated. When…
A: Solution: Product costs is capitalized in inventory when same is produced. However when products are…
Q: iv. How you passed the entry of scrape material for: Transfer scrape to inventory ,Sold scrape to…
A: "Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…
A: Cost of beginning inventory is relevant because it is added to the current period cost. Equivalent…
Q: a. Prepare an income statement according to the absorption costing concept. b. Prepare an income…
A: The income statement represents the net income where the expenses are deducted from the revenues of…
Q: in intended application between sales life-cycle analysis and life-cycle costing
A: The strategic pricing depends on the product price which it supported the worth it charges to the…
Q: Purchase discounts, freight in and receiving costs A. are used when setting a cost standard for…
A: Purchase discounts, freight in, and receiving costs are considered as part of the cost of the…
Q: When will cost of goods sold will equal the cost of goods manufactured? when work-in-process…
A: Particulars Amount Ending finished goods inventory xxxx Add: Cost of goods sold xxxx…
Q: Which of the following statements is true? Multiple Choice Product costs and variable costs are…
A: Product cost means the cost which are incurred to create a product that is intended for sale to the…
Q: Period costs under absorption costing are Select one: O a. Cost of inventory O b. Fixed and variable…
A: The income statement of the company will include all the revenues, and expenses of the company. The…
Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). cost of goods…
A: Fixed costs are those costs which do not change with change in level of activity. Variable costs…
Q: 1. Which of the following is a hybrid costing system that applies to batches of like or similar…
A: Note : As per answering guidelines only first question need to be answered However i answered…
Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…
A: Selling expenses means the expense incurred while selling the goods like sale men commission , sale…
Q: Are selling and administrative expenses treated as product costs or as period costs under variable…
A: Selling and administrative expenses: These expenses incurred by the company does not relate to the…
Q: When inventory increases, the fixed manufacturing overhead is deferred in inventory under:"…
A: Under Variable costing method, only variable cost is assigned to inventory.
Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…
A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…
Q: When products and their costs are moved from one process to the next process, these costs are…
A: Process costing is a method of costing used to ascertain the cost of a product at each stage or…
Q: If the cost of goods manufactured is less than the cost of goods sold, which of the following is…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Explain how variable costing system costing is used to calculate the cost of goods manufactured.…
A: (1) Variable costing system The variable costs are included in the product cost in variable…
Q: The gross-margin format is used for A. mixed costing income statement B. absorption costing income…
A: Gross Margin In simple term gross margin is deduct the amount from the total revenue to cost of…
Q: When using the total cost concept of applying the cost-plus approach to product pricing, what is…
A: Answer In total cost concept of applying cost plus approach of product pricing , the total cost…
Q: What factor, related to manufacturing costs, causes the difference in net earnings computed using…
A: Answer: Correct answer is option ( d) d. Absorption costing "inventories" all direct costs, but…
Q: A.Compute for the ending Finished Goods Inventory under Absorption costing B.Compute for the ending…
A: Finished goods are those goods which are ready to sale by the company and no further processes are…
Q: Required: Compute the ending inventory (February) under variable costing. Compute the ending…
A: Here in this question, we are required to calculate closing stock for the month of February by…
Q: 2. Discuss the differences between the gross profit figures calculated in part 1 compared with those…
A: 2. The gross profit from activity based costing system is given below. Activity Tablets Laptops…
Q: the equivalent units for materials and conversion costs. 2. Compute the unit costs for materials…
A: Answer 1) Equivalent units for material and conversion costs. Physical units % material %…
Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, whatdoes…
A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…
Q: Required: a) Complete the following process costing steps using the weighted average method: i…
A: a) i Calculation of equivalent units.
Q: Shipping, selling, marketing, sales order processing, return processing, and advertising activities…
A: Hello I am only answering first question as per the policy and if you want others to be answered…
Q: Question: Unlike the traditional full-absorption cost system, activity-based costing (ABC) assigns:
A: Companies always have the problem which they have to tackle very cautionary is the allocation of the…
Q: Discuss the different situations for when Traditional Absorption Costing and Relevant costing would…
A: The traditional absorption costing is useful to estimate the cost of production that include direct…
Q: The first step in determining the cost per EUP per cost component under the weighted average method…
A: Introduction:- EUPs shows the number of completed goods that could have been produced using the…
Q: Define cost accounting, what are the two basic types of product costing. Explain any one of them…
A: Cost accounting is that branch of accounting in which the cost to be incurred for the manufacturing,…
Q: Differentiate inventory valuation under variable costing as against absorption costing.
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Requirements: • 1. Compute the equivalent units for materials and conversion costs. • 2. Compute the…
A: Calculation of all requirement with necessary workings are as follows.
Q: Calculate the order quantity that would minimize the cost of item
A: Only the first part is solved, since only that is specified to be solved.
Q: How much fixed overhead cost is included in ending finished goods inventory under absorption…
A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…
Q: ) What is the ending inventory (February) under variable costing? 2) What is the ending inventory…
A: The entity uses two types of costing systems, which are as follows: (1) Variable costing…
Q: The purpose of costing are as follows EXCEPT: a) Value inventory b) Record costs c) Price products…
A: The purpose of costing is. 1. To Formulate cost of a product 2. To facilitate decision making 3. To…
Q: If the cost of goods manufactured is less than the cost of goods sold, which of the following is…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…
A: Units completed are relevant to calculate the cost of units completed. Equivalent unit of production…
Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…
A: Overhead Costs: Overhead costs are business expenses that cannot be associated or traced directly…
Q: required, round unit cost answers to the nearest cent. Calculate the unit cost and the cost of…
A: Solution:- 1)Calculate the unit cost and the cost of finished goods inventory under absorption…
Q: What factor, related to manufacturing costs, causes the difference in net earnings computed using…
A: The question is related to Marginal Costing and is multiple choice question.
Q: methods. variable costing system, fixed overhead cost is included of the cost of inventory.…
A: Option a, c and d are incorrect The correct statements are a) In variable and absorption costing ,…
Q: What are the two main inventory methods used in process costing? What are the differences between…
A:
Q: . Assume the company uses absorption costing. Determine its product cost per unit.
A: In order to obtain the product cost under absorption costing, first the per-unit costs are added…
Q: Which of the following would be included in the cost of a product manufactured according to variable…
A: direct materials: production cost sales commissions: selling cost interest expense: other cost…
Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…
A: Process costing is one of the methodology that is used in cost accounting. Under this, output of one…
QUESTIONS
A. Compute for the ending Finished Goods Inventory under Absorption costing
B. Compute for the Ending Finished Goods Inventory under Variable Costing method
Step by step
Solved in 2 steps with 1 images
- Question 1: Pamlico Manufacturing Ltd has the following information given in the table below. 12.50 Sales per unit Variable production cost per unit Variable administration sales and distribution per 7.50 1.00 unit Fixed production costs 37 500 18 750 Fixed administration sales and distribution Opening inventory in units Units produced 2 500 25 000 At the beginning of December 2018, there were 2 500 units in inventory. Required: Draw up a staement of comprehensiy income according to margial costing principlesor three differenevels of sales, for the moth of December 12 500 units b) 18 750 units c) 25 000 units Question 2 Using the above information on Pamlico Manufacturing Ltd, prepare the statement of comprehensive income using absorption costing principles for the month of December and assume the following: 1. Normal level of activity is 25 000 shirts per month. 2. Fixed production costs were 37 500 for the month.The following operating data are available from the records of Jonathan Company for the month of January 20CY. Sales (P70 per unit) Direct Materials Direct Labor Manufacturing Overhead Fixed P210,000 59,200 48,00 36,080 Variable Marketing and General Expenses Fixed 24,000 11,000 5% of sales Variable Production in units Beginning inventory 3280 units none 37. The ending finished goods inventory under absorption costing method would be: a. 14,280 b. 16,968 c. 12,096 d. 16,072 38. The profit for the month under the variable costing method would be: а. 32,420 b. 25,500 с. 23,320 d. 22,420A company reports the following information for the current year: Units Produced (25,000)< Units Sold (15,000), DM ($9 per unit), DL ($11 per unit), VOH (total $75,000) and FOH (total $137,500). Compute the cost of finished goods in inventory under absorption costing a. $427,500 O b. $285,000 O c. $230,000 O d. $712,500
- Sales per unit P15.00Variable production cost 8.00Annual fixed production cost 35,000.00Variable selling expense (unit) 3.00Annual fixed selling expense 15,000.00Produced 12,500 units during the periodNo inventory at January 1 (beg.)Sold 10,000 units 21. The ending inventory under direct costing isa. P25,000 b. P27,500 c. P20,000 d. P32,500 22. Ending inventory under absorption costing isa. P32,500 b. P20,000 c. P25,000 d. P27,000The following data is for a company that produces a single product. selling price 24 193 Units in beginning inventory Units produced Units sold 3,090 2,910 Variable costs per unit: Direct materials 24 24 24 24 53 Direct labor 59 variable manufacturing overhead variable selling and administrative expense Fixed costs: 15 13 Fixed manufacturing overhead Fixed selling and administrative $ 89,610 $ 8,730 Required: a. What is the unit product cost for the month under varlable costing? b. What Is the unit product cost for the month under absorption costing? C. Prepare a contribution format Income statement for the month using varlable costing. d. Prepare an Income statement for the month using absorption costing. e. Reconcile the varlable costing and absorption costing net operating incomes for the month. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Prepare a contribution format income statement for the month using…Circetrax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Beginning balance, in units Units produced Units sold Ending balance, in units Production costs: Variable manufacturing costs per unit Total fixed manufacturing costs What is the unit product cost for the year using absorption costing? OA. $117 630 1,400 1,500 530 $50 $42,000 W
- MC Qu. 8-30 Falisari Corporation has computed the following... Falisari Corporation has computed the following unit costs for the year just ended: Direct material used $ 22 Direct labor 19 Variable manufacturing overhead 37 Fixed manufacturing overhead 39 Variable selling and administrative cost 17 Fixed selling and administrative cost 30 Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing? Variable Costing Absorption Costing A. $ 78 $ 117 B. $ 78 $ 147 C. $ 95 $ 117 D. $ 95 $ 147 E. None of the answers is correct. Multiple Choice Choice A Choice B Choice C Choice D Choice EThe following data is for a company that produces a single product. Selling price 193 Units in beginning inventory Units produced 3,090 2,910 Units sold Variable costs per unit: Direct materials 53 Direct labor 59 2$ Variable manufacturing overhead Variable selling and administrative expense 15 13 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 89,610 $ 8,730 Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using variable costing. d. Prepare an income statement for the month using absorption costing. e. Reconcile the variable costing and absorption costing net operating incomes for the month. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What is the unit product cost for the month under variable costing? Cost Per…Blossom Manufacturing Ltd. had sales for January 2022 of $1,025,000. The units sold were 20.500, and the expenses for January 2022 were as follows: Cost of goods sold Selling expenses Administrative expenses Show Transcribed Text Variable $207.050 56.375 29,725 Fixed $123,000 28,700 35,875 10 C Blossom Manufacturing Inc. CVP Income Statement Total Per unit
- Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead Belle Company's product is sold for $74 per unit a Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $300,000 per year. Compute the net income under variable costing. Multiple Choice O с $76,000 $176,000 $260,680 70,000 units 42,000 units $ 22 per unit $ 24 per unit $ 3 per unit $ 490,000 in total $126.000Prepare the Income Statement of Rotary Limited for the year ended 28 February 2021 using the following methods of costing: 2.1 Marginal costing | 22 Absorption costing INFORMATION The following information was extracted from the accounting records of Rotary Limited for the year ended 28 February 2021: Inventory on 01 March 2020 Nil Production for the year 35 000 units Sales for the year 30 000 units Fixed costs: Manufacturing R700 000 Sales and administration R480 000 Variable costs per unit: Manufacturing R48 Sales and administration R12 Selling price per unit R150b) 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.
