Comparison of variable and absorption costingvariable and

Assignment Help Financial Accounting

Reference no: EM13356585

Comparison of Variable and Absorption Costing.

Variable and Absorption Costing

Chan Manufacturing Company data for 20X7 follow:

Sales: 12,000 units at $17 each

Actual production 15,000 units

Expected volume of production 18,000 units

Manufacturing costs incurred

Variable $120,000

Fixed 63,000

Nonmanufacturing costs incurred

Variable $ 24,000

Fixed 18,000

1. Determine operating income for 20X7, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)

2. Assume that there is no January 1, 20X7, inventory; no variances are allocated to inventory; and the firm uses a \"full absorption\" approach to product costing. Compute (a) the cost assigned to December 31, 20X7, inventory; and (b) operating income for the year ended December 31, 20X7.

Reference no: EM13356585

Questions Cloud

Valuation of inventory using fifo and lifo methodsall-pages : valuation of inventory using fifo and lifo methods.all-pages book company reports the following inventory transactions

Computation of cross currency exchange ratesyesterday you : computation of cross currency exchange rates.yesterday you picked up the wall street journal and saw the following spot

Identifying the external borrowings requirement or excess : identifying the external borrowings requirement or excess cash generated by preparing the pro-forma balance sheet.it is

Determining the cost of the product under absorption and : determining the cost of the product under absorption and variable costing methods.variable costing problem your company

Comparison of variable and absorption costingvariable and : comparison of variable and absorption costing.variable and absorption costingchan manufacturing company data for 20x7

Preparation of income statement using absorption and : preparation of income statement using absorption and marginal costing.absorption and variable costing joan tyler

Comparison of variable costing and absorption : comparison of variable costing and absorption costingconsider the following information pertaining to a years

Using variable costing to make business decisions john : using variable costing to make business decisions .john chang is president of clean machines a new car washing service

Accounting treatment for errors and correctionseffects of : accounting treatment for errors and corrections.effects of errors show how the following independent errors will affect

User Account

All Pages