Carolina catsup company produces catsup which it sells

Reference no: EM13599711

Carolina Catsup Company produces catsup, which it sells exclusively to fast-food restaurants in 5-gallon containers, which sell for $16 each and have the following variable costs:

Direct material $5
Direct labor $2
Variable overhead $3

Budgeted fixed overhead in 20x0 was $300,000. Actual production of 5-gallon containers totaled 150,000 of which 125,000 were sold. The company incurred the following selling and administrative expenses:

Fixed $50,000 for the year
Variable $1 per container sold

A. Compute the standard product cost per container of catsup under (1) absorption costing and (2) variable costing.
B. Prepare income statements for 20x0 using (1) absorption costing and (2) variable costing.
C. Reconcile the income reported under the two methods by listing the two key places where the income statements differ.

Reference no: EM13599711

Questions Cloud

Frogue corporation uses a standard cost system the : 1 agnew corporation uses a standard cost system. the following information was provided for the period that just ended

What is the normal procedure for handling the collection : what is the normal procedure for handling the collection of accounts receivable previously written off using the direct

A year ago crunchy cola corporation bought a stamping : a year ago crunchy cola corporation bought a stamping machine to make the cans for its cola. the cost of the machine

Division w of comer company has sales of 840000 cost : division w of comer company has sales of 840000 cost ofgoods sold of 500000 operating expenses of 256000 andinvested

Carolina catsup company produces catsup which it sells : carolina catsup company produces catsup which it sells exclusively to fast-food restaurants in 5-gallon containers

Kendra companys standard labor cost of producing one unit : kendra companys standard labor cost of producing one unit of product dd is 4 hours at the rate of 14.04 per hour.

What are at least four depreciation methods that are : what are at least four depreciation methods that are available to a company?what are their similarities and

Harley davidson sells motorcycle x and y motorcycle x sells : harley davidson sells motorcycle x and y. motorcycle x sells for 10000 has variable cost labor and material of 2000 and

At the beginning of the fiscal year the balance sheet : 1. which of the following is not a transaction to be recorded in the accounting records of an entity? a. investment of

User Account

All Pages