Reference no: EM131774547
Problem - 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. (Do not prepare a statement.)
|
Calculate gain or loss on the sale
: Accumulated Depreciation as of December 31, 2018 was $31,000. Calculate gain or loss on the sale.
|
|
What is the adjustment at the end of the accounting period
: Dr pays $3700 in weekly salaries on Fridays for a five day week ending on that day. What is the adjustment at the end of the accounting period ends on Wednesday
|
|
Find the costs of holding inventory
: In reality, it can be difficult to find the costs of holding inventory. Why is this so? How can these difficulties be overcome?
|
|
Processes and process types
: Group, important to the concepts we are studying this week is processes and process types. One particular business process is called value-added.
|
|
Determine the operating income
: Determine operating income for 20X7, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)
|
|
Compute the amount of capital loss carry forward
: Compute the amount of capital loss carry forward, if any, and indicate the years to which the loss may be carried
|
|
What would be the percentage change in apple unit sales
: A recent study has determined the following elasticities for apples. Use this elasticity information to answer the questions below.
|
|
What are the total product costs
: Jasper Corporation incurred the following costs in April: Salespersons' salaries $40,000 Factory maintenance worker $20,000 Factory insurance $12,000
|
|
Electronic whiteboard at the nursing station on their unit
: Nursing staff asks you to help them determine what information can be posted on an electronic whiteboard at the nursing station on their unit.
|