hw13 - ORIE 350 Fall 2006 Homework#13 Due 1 Hunting...

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ORIE 350 Fall 2006 Homework #13 Due November 28, 2006 1. Hunting Products Research Inc. of El Dorado, Arkansas, makers of the Loggy Bayou line of archery tree stands, had the following costs and prices associated with the production last month for one of its deer hunting stands. Beginning Inventory: 0 Production: 1000 units Sales 680 units Direct materials $39,450 total Direct labor $18,680 total Manufacturing Overhead $48,000 total Selling expenses $10,000 total Admin. expenses $7,000 per month Selling price $179.95 per unit (wholesale) a) Provide the statement of operating income for the month using absorption costing Hunting Products Research Inc. Income Statement (GAAP) For the month ended October 31, 2006 Sales Revenue $122,366 Cost of Goods Sold (72,168.40) Gross Margin 50,197.60 Selling Expenses (10,000) Admin. Expenses (7,000) Operating Income 33,197.60 b) Provide the statement of operating income for the month using variable costing Hunting Products Research Inc. Income Statement (non-GAAP) For the month ended October 31, 2006 Sales Revenue $122,366 Variable Manufacturing Costs (39,528.40) Contribution Margin 82,837.60 Fixed Selling Expenses (10,000) Fixed Admin. Expenses (7,000) Fixed Overhead (48,000) Operating Income 17,837.60
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c) Provide the values shown in ending Finished Goods Inventory for both cases.
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