DB Week 4, Schultz

DB Week 4, Schultz - 04/3/2011 BUS5431 Managerial...

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BUS5431 Managerial Accounting Week 4 Homework Chapter 5 Exercise 11 Variable cost per unit $12.00 Fixed manufacturing overhead per unit ($180,000 ÷ 40,000 units) 4.50 Full cost per unit $16.50 Ending inventory under full costing: $16.50 x 3,000 units = $49,500 Exercise 18 The difference in net income between full and variable costing is $339,500 – 326,000 = $13,500. This is equal to the amount of fixed manufacturing overhead in ending inventory under full costing ($4.50 x 3,000 units = $13,500). Problem 2 2011 2012 2013 Fixed manufacturing overhead $ 45,000 $ 45,000 $ 45,000 Divided by units produced 3,000 4,500 1,500 Fixed manufacturing overhead per unit 15 10 30 Variable manufacturing costs 75 75 75 Full cost per unit $ 90 $ 85 $ 105 Sales ($225 x 3,000 units) $ 675,000 $ 675,000 $ 675,000 Less cost of goods sold: ($90 x 3,000) 180,000 ($85 x 3,000) 255,000 ($85 x 1,500 + $105 x 1,500) 285,000 Gross margin 495,000 420,000 390,000 Less selling and administrative expense 4,500
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DB Week 4, Schultz - 04/3/2011 BUS5431 Managerial...

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