Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of...
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Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 4,600 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $35.20 Direct labor 19.80 Fixed factory overhead 6:30 Variable factory overhead 5.50 This information has been collected in the Microsoft Excel Online fie. Open the spreadsheet, perform the required analysis, and input your answers in the question below H Open spreadsheet 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 s Variable costing eBook Show Me How Income Statements under Absorption Costing and Variable Costing Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results for March: Sales (3,000 units) Production costs (3,000 units) Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses $43,800 Fixed selling and administrative expenses 18,400 If required, round interim per-unit calculations to the nearest cent. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. $877,200 377,100 61,500 96,600 Check My Work $2,040,000 1,412,400 62,200 Open spreadsheet a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended July 31 Office 365 Save and Exa Previous CO ALGO ALGO a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended July 31 $ Fixed costs: $ b. Prepare an income statement according to the variable costing concept. Crazy Mountain Sports Inc. Variable Costing Income Statement For the Month Ended July 31 Check My Work Show Me How I Office 365 $ b. Prepare an income statement according to the variable costing concept. Crazy Mountain Sports Inc. Variable Costing Income Statement For the Month Ended July 31 Fixed costs S What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the U method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the Income statement will have a higher operating income. Check My Work Previous all Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 4,600 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $35.20 Direct labor 19.80 Fixed factory overhead 6:30 Variable factory overhead 5.50 This information has been collected in the Microsoft Excel Online fie. Open the spreadsheet, perform the required analysis, and input your answers in the question below H Open spreadsheet 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 s Variable costing eBook Show Me How Income Statements under Absorption Costing and Variable Costing Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results for March: Sales (3,000 units) Production costs (3,000 units) Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses $43,800 Fixed selling and administrative expenses 18,400 If required, round interim per-unit calculations to the nearest cent. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. $877,200 377,100 61,500 96,600 Check My Work $2,040,000 1,412,400 62,200 Open spreadsheet a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended July 31 Office 365 Save and Exa Previous CO ALGO ALGO a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended July 31 $ Fixed costs: $ b. Prepare an income statement according to the variable costing concept. Crazy Mountain Sports Inc. Variable Costing Income Statement For the Month Ended July 31 Check My Work Show Me How I Office 365 $ b. Prepare an income statement according to the variable costing concept. Crazy Mountain Sports Inc. Variable Costing Income Statement For the Month Ended July 31 Fixed costs S What is the reason for the difference in the amount of operating income reported in (a) and (b)? Under the U method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the Income statement will have a higher operating income. Check My Work Previous all
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Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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