Compute Company T’s product cost per pint under absorption costing and variable costing.

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Answer 1

Question

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

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Bigdog Company distributes pet products. Its ABC system has five activities: Activity Area Cost Driver Rate in 2020 1. Order processing $50 per order 2. Line-item ordering $5 per line item 3. Store deliveries $40 per store delivery 4. Carton deliveries $6 per carton 5. Shelf-stocking $19 per stocking hour Rufus McBrain, the controller of Bigdog Company, wants to use this ABC system to examine customer profitability. He focuses on two of his customers to find out the insights he can gain from using this system. Data for these two customers in April 2020 are as follows: Pet Store Annerley RSPCA store Springwood Total orders 13 7 Average line items per order 11 19 Total store deliveries 5 7 Average cartons shipped per store delivery 21 18 Average hours of shelf stocking per store delivery 0.5 0.75 Average revenue per delivery $2,600 $1,900 Average cost of goods sold per delivery…

Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) Revenues Costs: Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Total C Per Unit For 2019, Guppy buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $7 per pack. Assume Guppy has no fixed costs and no inventories. Calculate Guppy's operating income for 2019.

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Answer 2

Question

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Expert Solution & Answer

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Answer 3

Question

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

3.

To determine

Prepare income statement using absorption costing and variable costing.

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Answer 6

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

Answer 7

Chapter 21, Problem 37P

1.

To determine

Compute Company T’s product cost per pint under absorption costing and variable costing.

Answer 8

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

Answer 9

2.

To determine

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

Answer 10

3.

To determine

Prepare income statement using absorption costing and variable costing.

Answer 11

3.

To determine

Prepare income statement using absorption costing and variable costing.

Answer 12

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Answer 13

4.

To determine

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 21 - Pierce Company had the following costs: Calculate...Ch. 21 - Hayden Company has 50 units in Finished Goods...Ch. 21 - The Stark Company manufactures a product that is...Ch. 21 - Chaney Company provides lawn care services....Ch. 21 - Prob. 1QC Ch. 21 - Prob. 2QC Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...

Compute Company T’s product cost per pint under absorption costing and variable costing.

Solution Summary: The author explains how to calculate Company T's product cost per pint under absorption costing and variable cost.

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Compute Company T’s product cost per pint under absorption costing and variable costing.

Compute the balance in finished goods inventory on May 31, 2018 using absorption costing and variable costing.

Prepare income statement using absorption costing and variable costing.

Reconcile the differences between operating incomes and finished goods inventory balances between the two costing methods.

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Chapter 21 Solutions