What is cost of goods sold using variable costing

Assignment Help Managerial Accounting
Reference no: EM132833243

Question - Richetti produces stereo speakers. The selling price per pair of speakers is $1,800. There is no beginning inventory.

Costs involved in production are:

Direct material $161

Direct labor $183

Variable manufacturing overhead $107

Total variable manufacturing costs per unit $451

Fixed manufacturing overhead per year $594,000

In addition, the company has fixed selling and administrative costs:

Fixed selling costs per year $200,500

Fixed administrative costs per year $102,400

During the year, Richetti produces 1,500 pairs of speakers and sells 1,200 pairs.

Required -

1. What is cost of goods sold using full costing?

2. What is cost of goods sold using variable costing?

Reference no: EM132833243

Questions Cloud

What are some advantages to your methods : Why is it so important to formulate your brief for a data presentation? Discuss some ways you would implement to formulate an effective brief.
Complexity and uncertainty in project management landscape : In today's turbulent business environment, effective project management is contingent on the ability to manage the ambiguity that arises while operating
What is the present value today of these cash flows : If your required rate of return (APR) is 8% compounded annually, what is the present value today of these cash flows
What aspects of the business would the plan address : If you were developing a business continuity plan for your company, where would you start? What aspects of the business would the plan address?
What is cost of goods sold using variable costing : During the year, Richetti produces 1,500 pairs of speakers and sells 1,200 pairs. What is cost of goods sold using variable costing
Describe a computer security threat possible : Describe a computer security threat possible in the health care environment and how can it be managed or prevented
Theoretical frameworks in business ethics : What are the implications of these frameworks for leaders in general and yourself specifically?
Discussion about the big data visualization tools : Several Big Data Visualization tools have been evaluated in this weeks paper. While the focus was primarily on R and Python with GUI tools, new tools are being.
What is the value of ending inventory using variable costing : During the year, Richetti produces 1,500 pairs of speakers and sells 1,200 pairs. What is the value of ending inventory using variable costing

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd