Prepare the income statement for the year ended 31 December 2020 using: Absorption costing Variable costing
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Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…
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Q: If inventory increased during the year, income reported under absorption costing: will be higher…
A: Solution: If inventory increased during the year, income reported under absorption costing "will be…
Q: Which statement is TRUE? An absorption costing income statement calculates gross profit; a variable…
A: Absorption costing: Its also called as Full costing. Absorption costing is used for the purpose of…
Q: Net income under Variable costing Method
A: Solution:- Calculation of Income under Variable costing method as follows:- Note:- Calculation of…
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Q: 1. The total variable costs charged to expense for the year, assuming that NUBD uses variable…
A: Solution:- 1)Calculation of total variable costs charged to expense for the year, assuming that NUBD…
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Q: QUESTION A. What is the net income for 2020 under the Variable Costing Method? B. What is the net…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
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Q: o. Reconcile the variable costing income from operations of $357,500 with the absorption costing…
A: The question is based on the concept of Cost Accounting.
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Q: Prepare the income statement for the year ended 31 December 2020 using: (i) Absorption costing. (ii)…
A: Step 1 Absorption costing sometimes is full absorption which captures all costs associated with…
Q: b. Prepare a variable costing income statement for the three products. Enter a net loss as a…
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Q: a) Prepare a statement of cost production for the year ended 31 December 2020 b) Prepare a…
A: Required statements are given below:
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: QUESTIONS A. Compute for the ending Finished Goods Inventory under Absorption costing B. Compute…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: The net operating income (loss) under variable costing in Year 1 is closest to:
A: The correct option is A.) $29000
Q: Explain the difference between variable costing and absorption costing income statements. Provide a…
A: Difference Between Variable Costing and absorption costing income statements. Under Variable…
Q: Which of the following is a correct statement? OA the fixed manufacturing cost is based on a per…
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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: How is operating income affected if the number of units sold exceeds the number of units produced?…
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Prepare the income statement for the year ended 31 December 2020 using:
- Absorption costing
- Variable costing
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- The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
- How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipmentIncome Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per Unit Per Year $ 200 $ 71 $ 50 $ 9 $ 8 Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the company's net operating income? Multiple Choice O $320,000 $620,000 $400,000 $300,000
- The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct materials Manufacturing overhead Selling and administrative expense P 435,000 215,000 190,000 185,000 1. What is Antonio's prime cost for last quarter? a. P460,000 b. P410,000 c. P405,000 d. P 375,000 2. Antonio's total manufacturing cost is a. P460,000 b. P 645,000 . P 650,000 d. P 840,000(b) Additional information regarding the costs of the company are given: Manufacturing costs Variable cost per unit Budgeted fixed manufacturing overhead per year $32,400,000 $25 Selling and administrative costs Variable cost per unit Total fixed cost $5 $5,000,000 Actual production in 2020 7,600,000 units Actual Sales in 2020 7,000,000 units Selling price Actual fixed manufacturing overhead in 2020 $50 per unit $32,000,000 The practical capacity level is used to calculate the budgeted fixed manufacturing cost per unit. There are no variable cost variances. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. There has been no beginning inventory in 2020.Jaguar Corporation’s 2020 manufacturing costs were as follows: Prime cost P 1,120,000 Variable manufacturing overhead costs 160,000 Depreciation of factory building and equipment 120,000 Factory supervisor’s salary (P16,000 per month) 192,000 Other fixed factory overhead 80,000 What amount should be considered product cost for external reporting purposes for the year 2020? Group of answer choices P 1,280,000 P 1,292,000 P 1,360,000 P 1,672,000
- Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per Unit Per Year $ 200 $ 75 $ 50 $ 10 Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the company's gross margin per unit?Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin $3,180,000 2,544,000 636,000 Fixed costs 480,000 Pretax income 156,000 Assume the company is considering investing in a new machine that will increase its fixed costs by $45,500 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine? %24A division sold 100,000 calculators during 2019: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the contribution margin per unit? $2 $7 $17 $13