Question: There was no finished goods inventory on July 1, 2008, for Royal Essentials. The company operated the manufacturing facility at 100% of capacity during July.

There was no finished goods inventory on July 1, 2008, for Royal Essentials. The company operated the manufacturing facility at 100% of capacity during July. The following data summarize the results for Royal Essentials Inc. for July:

Sales (1,350 casesx $80 per case) $108,000 Production costs (1,500 cases): $18,000 Direct materials Direct labor 7,500 V

Using the information in the comprehensive problem prepare the Income Statement under Variable Costing. Before completing the income statement compute the variable cost per unit.

Sales (1,350 casesx $80 per case) $108,000 Production costs (1,500 cases): $18,000 Direct materials Direct labor 7,500 Variable factory overhead 150 Fixed factory overhead 14,100 39,750 Variable selling expenses (1,350 cases x $16 21,600 percase)

Step by Step Solution

★★★★★

3.48 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Computation of the Variable cost per unit Direct materia... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

68-B-M-A-P-C (895).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year. She correctly calculated her AGI....

Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month...

Refer to QS 21-23. Compute its product cost per unit under variable costing. Data From QS 21-23 Vintage Company reports the following information. Compute its product cost per unit under absorption...

Vintage Company reports the following information. Compute its product cost per unit under absorption costing. Direct materials...... Direct labor..... Units produced.... $10 per unit $10 per unit...

I have attached the corresponding lessons for assignment 8, it usually includes practice problems at the bottom that look similar to the assignment. ASSIGNMENT 7 JOB ORDER COSTING Directions: After...

Global Holdings Ltd commenced a project 2 years ago to re-engineer the production process on a production line in a factory in Vietnam manufacturing generic pharmaceuticals. The project has, to date,...

Please Show Work Typed On Computer Not Hand Written. Questions 1 & 2 have already been done. I need help on the others. Please help, Thank you....

Please Show Work. Thank you! __________________________________________________________________________ Question 1 Parker Corp., which operates on a calendar year, expects to sell 6,860 units in...

A graph is plotted of the vertical velocity vy of an elevator versus time. The y-axis points up. (a) How high is the elevator above the starting point (t = 0) after 20 s has elapsed? (b) When is the...

Determine, V 01, V 02 and I for the following network in Fig Q2(a). Here, X = 23 2.2 k2 0.Xk2 Vol Vo2 Ge Si 22 V I Fig. Q2(a)

In an open system model, which of the following statements is NOT true? The system is open to influences from its enviornment. Open systems may exist as part of another open system. Open systems have...

Analyze the Department Store branding strategy at the corporate brand level, or product brand if any! Are there any other alternatives that might be good for a company like this that works in retail?...

Act what the act Fair Labor Standards does, why it was important, and present your view on whether we should still have this act today. Finally, discuss whether the act is effective.

Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank emails a signed electronic memorandum to a representative of Hardell...

Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them...

Determine the effective grain sizes and uniformly coefficients of the sediment graphed in Figure 1. Grain-size distribution curves of fine sand. 100 Percent finer by weight 90 80 70 60 50 40 U.S....

Which matter can be decided with the consent of all the partners? (i) Alteration of business. (iii) Admission of a new partner. (ii) Addition to the business. (iv) All of the above.

Consider excerpts from two balance sheets (amounts in millions): Citigroup Common stock ($.01 par value; authorized shares: 60 billion), issued shares 29,224,016,234 at December 31, 2010...

Chevron, the petroleum exploration, production, refining, and marketing company, presented the following in its September 30, 2011, balance sheet. Common stock $.75 par value, 2,442,676,580 shares...

Honda Motor Company is the largest producer of motorcycles in the world, as well as a major auto manufacturer. Honda included the following items in its 2011 balance sheet (in millions of Japanese...

Use the following information for the remaining questions: Project A: Initial Investment: $600 Cash Flows in Years 1 4: $240,$190,$160,$120 Project B: Initial Investment: $400 Cash Flows in Years 1...

Rosalie was invited to a black - tie dinner at the Ritz Carlton. She's never been served a 1 0 - course meal before, so she's unfamiliar with the social etiquette regarding silverware selection....

I need help with math work. View screenshot for work. x - Find the domain of the function f (x) = - 22 + 7x - 30 Ofx | x * -10 and x * 3} Ofx| x * 30} Ofx x # 30 and x * 1} Ofx1 x * - 30} Ofx1 x * -13