Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 14,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations: Units sold Units produced Costs: Variable factory overhead per unit Fixed factory overhead Variable marketing per unit Fixed Selling and Administrative 2021 12,500 14,000 $ 0.15 $ 2,800 $ 0.30 $ 320 2022 10,000 11,000 $ 0.15 $ 2,200 $ 0.30 $ 320 Full costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.) Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 14,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations: Units sold Units produced Costs: Variable factory overhead per unit Fixed factory overhead Variable marketing per unit Fixed Selling and Administrative 2021 12,500 14,000 $ 0.15 $ 2,800 $ 0.30 $ 320 2022 10,000 11,000 $ 0.15 $ 2,200 $ 0.30 $ 320 Full costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)
Expert Answer:
Answer rating: 100% (QA)
To calculate the full costing operating income for 2021 we need to consider both the variable and fi... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Xanadu, Corporation manufactures and sells one product, Alph, for $47 per unit. Xanadu is the only manufacturer that produces Alph because it is a patent-protected product. Although Xanadu, Corp....
-
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $5.2 million in anticipation of...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
EFG Manufacturing, a private company, produces light bulbs. It has 100 employees. 15 of their employees have asked for short breaks during the workday for religious purposes. They have also asked for...
-
In 2010, Sondra makes taxable gifts aggregating $300,000. Her only other taxable gifts amount to $200,000, all of which she made in 1997. a. What is Sondra's 2010 gift tax liability? b. What is her...
-
A quality control activity analysis indicated the following four activity costs of an administrative department: Sales are $2,000,000. Prepare a cost of quality report. Verifying the accuracy of a...
-
Consider the following cash flow profile and assume MARR is 10 percent/year. a. What does Descartes' rule of signs tell us about the IRR(s) of this project? b. What does Norstrom's criterion tell us...
-
The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,000 kayaks during 2013. Each kayak will require 54 pounds...
-
Crystal Corporation earned net income of $ 9 0 0 , 0 0 0 in 2 0 2 3 . It has a complex capital structure as follows: 1 2 , 0 0 0 shares outstanding of 8 % , $ 1 0 0 preferred stock, and 1 7 0 , 0...
-
Bonds 1. Municipal Bonds - Municipal bonds are haircut per Exhibit 1 based on both their time to maturity and scheduled maturity at date of issue. 2. Corporate Bonds - Corporate bonds are haircut...
-
Calculate the energies in MeV of each fusion product for the following reactions (a) D+T>4He + n + 17.6MEV { 3 He + n + 3.27MEV (50%) T +p+ 4.03MeV (50%) (b) D+D (c) D+3He>4He + p + 18.3MEV
-
Zack Manufacturing Company makes a product that is processed through two departments: cutting and final. All materials are added in the first department. During the month of March 2019, the company...
-
Assume market rate of return of 14%, risk-free rate of 4% and beta of 0.98 for BEA Systems. Assume also that BEA will continue to grow at its recent average annual growth rate of 9% for indefinite...
-
Today, numerous painkillers and cold and flu therapies are available over the counter. In general, people tend to buy these OTCs without consulting a doctor or pharmacist. Do you feel people are...
-
What is the ending balance of the current year deferred tax liability?
-
As we look to the future of sport, why do you think that soccer is less popular in the United States? Will it eventually catch on? If you were the person in charge of choosing a sport to use in a...
-
Q1 (20 points) James was a master's degree student who wrote a paper for a course based on information he gathered by doing research. He also incorporated suggestions provided by his professor....
-
On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank...
-
Lexon Inc. is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further...
-
The abnormal spoilage is 300 units and the cost per equivalent unit is $2 for direct materials and $3 for conversion. The inspection point is at the end of processing. There are 600 units in ending...
-
The authors of an article published in Harvard Business Review (Laurie Bassei and Daniel McMurrer, Maximizing Your Return on People, Harvard Business Review (March 2007), p. 115-123) discuss how the...
-
Say that a firm has fixed costs of $100 and constant average variable costs of $25. a. Show AFC, VC, AVC, and MC in a table. b. Graph the AFC, ATC, AVC, and MC curves. c. Explain why the curves have...
-
An economic consultant is presented with the following total product table and asked to derive a table for average variable costs. The price of labor is $10 per hour. a. Help him do so. b. Show that...
-
Say a firm has $100 in fixed costs and its average variable costs increase by $5 for each unit, so that the cost of 1 is $25, the cost of 2 is $30, the cost of 3 is $35, and so on. a. Show VC, AFC,...
Study smarter with the SolutionInn App