W4Chapters9_10_11 - Lydia Holmes Excersie 9-16 Nascar...

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Lydia Holmes Excersie 9-16 Nascar Motors assembles and sells motor vehilcles and uses standard costing. April May Unit data Beginning inventory 150 Production 500 400 Sales 350 520 Variable costs Manufacturing cost per unit produced $ 10,000 $ 10,000 Operating cost per unit sold 3,000 3,000 Fixed costs Manufacturing costs $2,000,000 $2,000,000 Operating costs 600,000 600,000 1. Prepare April and May income statements for Nascar Motors under (a) variable costing and ( April ( A ): Variable Costing Revenues: $24,000 x 0; 150 $8,400,000 Variable cost of goods sold Beginning Inventory: $10,000 x 0; 150 $- Variable manufacturing costs: $10,000 x 500; 400 5,000,000 Cost of goods available for sale 5,000,000 Deduct ending inventory: $10,000 x 250; 30 (1,500,000) Variable cost of goods sold 3,500,000 Variable operating cost: $3,000 x 350; 520 1,050,000 Contribution margin 3,850,000 Fixed manufacturing costs 2,000,000 Fixed operating costs 600,000 Operating income $1,250,000 ( B ): Absorbtion Costing Revenues: $24,000 x 0; 150 $8,400,000 Cost of goods sold Beginning Inventory: $13,000 x 0; 150 $- Variable manufacturing costs: $10,000 x 500; 400 5,000,000 Allocated fixed manufacturing cost: $3,000 x 500; 400 1,500,000 Cost of goods available for sale 6,500,000 Deduct ending inventory: $13,000 x 250; 30 (1,950,000) 500,000 U Cost of goods sold 4,050,000 Gross margin 4,350,000 Variable operating cost: $3,000 x 350; 520 1,050,000 Fixed operating costs 600,000 Operating income $2,700,000 2. Prepare a numerical reconcilliation and explanation of the difference between operating incom Adjustment for production-volume variance a
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This note was uploaded on 04/17/2010 for the course AC Cost Accti taught by Professor Don'trecall during the Spring '09 term at Regis University.

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W4Chapters9_10_11 - Lydia Holmes Excersie 9-16 Nascar...

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