Exercise 19-22A (Algo) Converting variable costing Income to absorption costing Income LO A2A manufacturer reports the following Information for the past three years.Variable costing incomeBeginning finished goods inventory (units)Ending finished goods Inventory (units)Fixed overhead (FOH) per unitYear 1$125,000130,400Year 3$131,4501,7881,2001,7001,2001,388$ 3.20$3.20$3.20Compute Income for each of the three years using absorption costing. Hint Fixed overhead In Inventory equals the FOH per unit *Units In Inventory. (Amounts to be deducted should be indicated with a minus sign.)Answer is not complete.Year 1Year 2Year 3Variable costing income$125.000$ 130,400 $131,450Fixad overhead in beginning FG Inventory0Fixed overhead in ending FG InventoryAbsorption costing income

The income statement can be prepared using different methods as variable costing and absorption…

Ise 19-22A (Algo) Converting variable costing Income to absorption costing Income LO A2 A manufacturer reports the following Information for the past three years. Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Fixed overhead (FOH) per unit Year 1 $125,000 Year $ 130,400 Year 3 $131,450 B 1,788 1,200 1,700 $ 3.20 1,200 1,388 $3.20 $3.20 Compute Income for each of the three years using absorption costing. Hint Fixed overhead In Inventory equals the FOH per un Units In Inventory. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. Variable costing income Year 125.000 Year 2 Year 3

Ise 19-22A (Algo) Converting variable costing Income to absorption costing Income LO A2 A manufacturer reports the following Information for the past three years. Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Fixed overhead (FOH) per unit Year 1 $125,000 Year $ 130,400 Year 3 $131,450 B 1,788 1,200 1,700 $ 3.20 1,200 1,388 $3.20 $3.20 Compute Income for each of the three years using absorption costing. Hint Fixed overhead In Inventory equals the FOH per un Units In Inventory. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. Variable costing income Year 125.000 Year 2 Year 3

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 4CE: Refer to Cornerstone Exercise 18.3. Required: 1. Calculate the cost of each unit using variable...

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Period Ccb Home | bartl... 22 my.post.edu... 1 - Chapter 1 Assignment of 15 ! 2 W # S Variable cost per unit sold Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Okay Required information [The following information applies to the questions displayed below.] 3 E Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: $ D 4 R TI 2⁰ Saved 3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.) F x3-Unit 1 - C... 51 T G G what is the h... Init 1-C... ct Help 6 Y U Save & Exit Average Cost per Unit $ 7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 H J You 8 1 Check my work F K Submit 9 O 80 2 P delete return
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ent question me Left: 01:28:25 Subject Accounting Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 5,300 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials Direct labor $35.00 13.80 6.30 Sub-subject Search And Select Fixed factory overhead Variable factory overhead 5.50 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing Variable costing
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Required information Exercise 7-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes (LO7-3] [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) Ending (units) Variable costing net operating income 200 160 200 210 160 230 $290,000 $269,000 $250,000 The company's fixed manufacturing overhead per unit was constant at $500 for all three years.
AA Period Ccb Home | bartl... of 15 ezto.mheducation.com 22 my.post.edu... Total variable cost 6- Unit 1-C... Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Okay Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: G what is the h... Average Cost per Unit $7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 + Init 1 - C... You 6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) 00 ct
Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information a. Sales and production data for these first two years follow. Unite Units produced Units sold Direct materials Direct labor Year 1. Year 2 $ 47,000 $ 650,000 Year 1 48,700 37,000 b. The company's $37 per unit product cost (for both years) using absorption costing consists of the following. Year 2 48,700 60,400 Variable overhead Fixed overhead ($470,000/47,000 units) Total product cost per unit Variable costing income Absorption costing income $7 11 9 Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "0" wherever required.) 10 $ 37 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $ 47,000…