Salem Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating...
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Salem Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: (Click the icon to view the actual data.) The selling price per unit is $2,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month which it occurs. The variable manufacturing costs per unit of Salem Screen Corporation are as follows: (Click the icon to view the variable manufacturing cost data.) Salem Screen prepared the following income statements under variable costing and absorption costing. (Click the icon to view the variable costing statement.) (Click the icon to view the absorption costing statement.) Read the requirements. - Requirement 1. Prepare income statements for Salem Screen in January, February, and March 2020 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Enter a "0" for any zero balance accounts.) January 2020 Revenues Direct material cost of goods sold: Beginning inventory 0 $2,875,000 $ 63,750 February 2020 $3,162,500 March 2020 $3,335,000 $ 63,750 Direct materials in goods manufactured 595,000 584,375 612,000 Cost of goods available for sale 595,000 648.125 675,750 Deduct ending inventory (63,750) (63,750) (59,500) Total direct material cost of goods sold 531,250 584.375 616,250 Throughput margin 2,343,750 2,578,125 2,718,750 Manufacturing costs Other operating costs Operating income Unit data: Beginning inventory Production January February March 0 150 150 1,400 1,375 1,440 1,250 1,375 1,450 Sales Variable costs: Manufacturing cost per unit produced $ 850 $ 850 $ 850 Operating (marketing) cost per unit sold $ 750 $ 750 $ 750 Fixed costs: Manufacturing costs $ 490,000 $ 490,000 $ 490,000 Operating (marketing) costs $ 120,000 $ 120,000 $ 120,000 January February March Direct material cost per unit $ 425 $ 425 $ 425 Direct manufacturing labor cost per unit 100 100 100 325 325 325 Manufacturing overhead cost per unit $ 850 $ 850 $ 850 Salem Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: (Click the icon to view the actual data.) The selling price per unit is $2,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month which it occurs. The variable manufacturing costs per unit of Salem Screen Corporation are as follows: (Click the icon to view the variable manufacturing cost data.) Salem Screen prepared the following income statements under variable costing and absorption costing. (Click the icon to view the variable costing statement.) (Click the icon to view the absorption costing statement.) Read the requirements. - Requirement 1. Prepare income statements for Salem Screen in January, February, and March 2020 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Enter a "0" for any zero balance accounts.) January 2020 Revenues Direct material cost of goods sold: Beginning inventory 0 $2,875,000 $ 63,750 February 2020 $3,162,500 March 2020 $3,335,000 $ 63,750 Direct materials in goods manufactured 595,000 584,375 612,000 Cost of goods available for sale 595,000 648.125 675,750 Deduct ending inventory (63,750) (63,750) (59,500) Total direct material cost of goods sold 531,250 584.375 616,250 Throughput margin 2,343,750 2,578,125 2,718,750 Manufacturing costs Other operating costs Operating income Unit data: Beginning inventory Production January February March 0 150 150 1,400 1,375 1,440 1,250 1,375 1,450 Sales Variable costs: Manufacturing cost per unit produced $ 850 $ 850 $ 850 Operating (marketing) cost per unit sold $ 750 $ 750 $ 750 Fixed costs: Manufacturing costs $ 490,000 $ 490,000 $ 490,000 Operating (marketing) costs $ 120,000 $ 120,000 $ 120,000 January February March Direct material cost per unit $ 425 $ 425 $ 425 Direct manufacturing labor cost per unit 100 100 100 325 325 325 Manufacturing overhead cost per unit $ 850 $ 850 $ 850
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham
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