Managerial Accounting Homework Revew Chapter 5 Answer Key

Managerial Accounting Homework Revew Chapter 5 Answer Key -...

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Chapter 5 Homework Assignment Review Sheet EXERCISES E4. LO 1 Variable cost per unit $300 Fixed manufacturing overhead per unit ($600,000 ÷ 1,000 units) 600 Full cost per unit $900 Ending inventory under full costing: $900 × 100 units = $90,000 E5. LO 1, 2 Ending inventory under variable costing: $300 × 100 = $30,000 E6. LO 1 Full cost per unit is $900 per Exercise 4. Therefore, cost of goods sold under full costing is $900 × 900 units sold = $810,000. E7. LO 1, 2 Variable cost per unit is $300. Therefore variable cost of goods sold is $300 × 900 = $270,000. Under variable costing, the $600,000 of fixed manufacturing overhead is treated as a period expense. E8. LO 1 Sales ($1,500 × 900 pairs) $1,350,000 Less cost of goods sold ($900 × 900 pairs) 810,000 Gross margin 540,000 Less selling expense 200,000 Less administrative expense 100,000 Net income $ 240,000 E9. LO 1, 2 Sales ($1,500 × 900 pairs) $1,350,000 Less variable cost of goods sold ($300 × 900 pairs) 270,000 Contribution margin 1,080,000
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Less fixed manufacturing overhead 600,000 Less selling expense 200,000 Less administrative expense 100,000 Net income $ 180,000 E10. LO 1 The difference in net income between full and variable costing is $240,000 - $180,000 = $60,000. This is equal to the amount of fixed manufacturing overhead in ending inventory under full costing ($600 × 100 pairs = $60,000). PROBLEMS P1. LO 1, 2, 3, 5 a. 2008 2009 2010 Fixed production overhead $ 600,000 $ 600,000 $ 600,000 Divided by units produced 10,000 12,000 8,000 Fixed production overhead per unit 60 50 75 Variable production costs per unit 100 100 100 Full cost per unit $ 160 $ 150 $ 175 Sales ($200 * 10,000 units) $ 2,000,000 $ 2,000,000 $ 2,000,000 Less cost of goods sold:
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This note was uploaded on 09/22/2009 for the course BUSINESS ACG 2071 taught by Professor Love during the Fall '09 term at Florida State College.

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Managerial Accounting Homework Revew Chapter 5 Answer Key -...

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