9 and 11

# 9 and 11 - Saikat Mitra Chapter 9 HW Cost Accounting 9-16 1...

This preview shows pages 1–4. Sign up to view the full content.

Saikat Mitra Chapter 9 HW Cost Accounting 9-16 1. Information for income statement computations are: April May Beginning inventory Production Goods available for sale Units sold Ending inventory 0 500 500 350 150 150 400 550 520 30 Budgeted Fixed Cost: April May (a) Budgeted fixed manufacturing costs (b) Budgeted production (c)=(a)÷(b) Budgeted fixed manufacturing cost per unit (d) Budgeted variable manufacturing cost per unit (e)=(c)+(d) Budgeted total manufacturing cost per unit \$2,000,000 500 \$4,000 \$10,000 \$14,000 \$2,000,000 500 \$4,000 \$10,000 \$14,000 (a) Variable costing April May Variable costs: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable operating costs Total variable costs Contribution margin Fixed costs Fixed manufacturing costs Fixed operating costs Total fixed costs Operating income \$ 0 5,000,000 5,000,000 (1,500,000) 3,500,000 1,050,000 2,000,000 600,000 \$8,400,000 4,550,000 3,850,000 2,600,000 \$1,250,000 \$1,500,000 4,000,000 5,500,000 (300,000) 5,200,000 1,560,000 2,000,000 600,000 \$12,480,000 6,760,000 5,720,000 2,600,000 \$3,120,000 (b) Absorption costing: April May

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Cost of Goods Sold: Beginning inventory Variable manufacturing costs (1) Fixed Manu. Cost (2) Cost of goods available for sale Deduct ending inventory Adjustment for variance (3) Cost of Goods Sold Gross Margin Operating Costs: Variable operating costs (4) Fixed operating costs Total Operating costs Operating Income \$ 0 5,000,000 2,000,000 7,000,000 (2,100,000) 0 1,050,000 600,000 \$8,400,000 4,900,000 3,500,000 1,650,000 \$1,850,000 \$2,100,000 4,000,000 1,600,000 7,700,000 (420,000) 400,000 U 1,560,000 600,000 \$12,480,000 7,680,000 4,800,000 2,160,000 \$2,640,000 Works: \$10,000 × 500; \$10,000 × 400 \$2,000,000 – \$2,000,000; \$2,000,000 – \$1,600,000 \$4,000 × 500; \$4,000 × 400 f \$3,000 × 350; \$3,000 × 52 2 . Absorptioncosting operating income – Variablecosting operating income = Fixed manufacturing costs in ending inventory – Fixed manufacturing costsin beginning inventory April: \$1,850,000 – \$1,250,000 = (\$4,000 × 150) – (\$0) Or, \$600,000 = \$600,000 May: \$2,640,000 – \$3,120,000 = (\$4,000 × 30) – (\$4,000 × 150) Or, – \$480,000 = \$120,000 – \$600,000 Or, – \$480,000 = – \$480,000 The difference between absorption and variable costing happened beacsue of moving fixed manufacturing costs into inventories. 9-23 1. Variable costing income statements: 2008 2009
Revenues (\$3 per unit) Variable costs: Beginning inventory Variable cost of goods manu. Cost of goods available for sale Deduct ending inventory * Variable cost of goods sold Variable operating costs Variable costs Contribution margin Fixed costs Fixed manufacturing costs Fixed operating costs Total fixed costs Operating income Sales Production \$ 0 700 700 (200) 500 1,000 700 400 1,000 units 1,400 units \$3,000 1,500 1,500 1,100 \$ 400 Sales Production

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 12/12/2011 for the course ACCT 123 taught by Professor Mahajibril during the Fall '11 term at Newman.

### Page1 / 10

9 and 11 - Saikat Mitra Chapter 9 HW Cost Accounting 9-16 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online