Solutions -- Week 7

Solutions -- Week 7 - WEEK CLS DATES [M-W] 7 DATES [T-Th]...

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GNB Problem Solutions – Week-by-Week page 1 of 7 WEEK 7 GNB ASSIGNED PROBLEM SOLUTIONS BUAD 250B – FALL 2009 CLS DATES [M-W] DATES [T-Th] TOPICS READINGS ASSIGNMENTS [TO BE COMPLETED BY DATE ASSIGNED] 12 Oct 5 Oct 6 Presentations – Team I Variable Costing Ch. 7 DUE: Team Assignment I BE: 7-1, 2, 3, 4 OUT: Midterm Review Material 13 Oct 7 Oct 8 Variable Costing Ch. 7 PR: 7-6, 10, 11 NO ASSIGNED PROBLEMS IN WEEK 8 WEEK 8 GNB ASSIGNED PROBLEM SOLUTIONS BUAD 250B – FALL 2009 CLS DATES [M-W] DATES [T-Th] TOPICS READINGS ASSIGNMENTS [TO BE COMPLETED BY DATE ASSIGNED] 14 Oct 12 Oct 13 Midterm Review Prepare: Midterm Review Problems 15 Oct 14 Oct 14 MIDTERM EXAM (Chapters & Team Assignment I) [300 points] Exercise 7-1 1. Under absorption costing, all manufacturing costs (variable and fixed) are included in product costs. (All currency values are in thousands of rupiah, denoted by Rp.) Direct materials . .................................................................................................... Rp100 Direct labor . .......................................................................................................... 320 Variable manufacturing overhead . ........................................................................ 40 Fixed manufacturing overhead (Rp60,000 ÷ 250 units) . ...................................... 240 Absorption costing unit product cost . .................................................................... Rp700 2. Under variable costing, only the variable manufacturing costs are included in product costs. (All currency values are in thousands of rupiah, denoted by Rp.) Direct materials . .................................................................................................... Rp100 Direct labor . .......................................................................................................... 320 Variable manufacturing overhead . ........................................................................ 40 Variable costing unit product cost . ........................................................................ Rp460 Note that selling and administrative expenses are not treated as product costs under either absorption or variable costing. These expenses are always treated as period costs and are charged against the current period’s revenue.
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GNB Problem Solutions – Week-by-Week page 2 of 7 Exercise 7-2 (Note: All currency values are in thousands of rupiah, denoted by Rp.) 1. 25 units in ending inventory × Rp240 per unit fixed manufacturing overhead per unit = Rp6,000 2. The variable costing income statement appears below: Sales . ............................................................................................. Rp191,250 Variable expenses: Variable cost of goods sold (225 units sold × Rp460 per unit) . ......................................... Rp103,500 Variable selling and administrative expenses (225 units × Rp20 per unit) . ....................................................................... 4,500
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Solutions -- Week 7 - WEEK CLS DATES [M-W] 7 DATES [T-Th]...

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