Chapter6_homework - Chapter 6 homework 6.1 1 Direct materials Direct Labor Variable manufacturing Overhead Fixed Manufacturing Overhead Absorption

Chapter6_homework - Chapter 6 homework 6.1 1 Direct...

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Chapter 6 homework 6.1 1 Direct materials R120 Direct Labor 140 Variable manufacturing Overhead 50 Fixed Manufacturing Overhead 60 Absorption Costing Product cost R370 2 Direct Material R120 Direct Labor 140 Variable Manufacturing Overhead 50 Vairable costing unit product cost R310 6.2 1. 2000 units X R60 fixed manufacturing overhead per unit = R120,000 2. Sales R4,000,000 Variable cost of goods sold R2,480,000 Variable selling and administrative R160,000 2640000 Contribution margin 1360000 Fixed manufacturing overhead 600000 Fixed selling and administrative 400000 1000000 Net operating income R360000 Exercise 6-3 1 Year 1 Year 2 Year 3 Beginning inventories 180 150 160 Ending inventories 150 160 200 Change in inventories (30) 10 40 Fixed Manufacturing overhead beg inv 81,000 67,500 72,000 Fixed Manufacturing overhead ending inv 67,500 72,000 90,000 Fixed Manufacturing overhead deferred in inv (13,500) 4,500 18,000 Variable costing net operating income 292,000 269,200 251,800 Add fixed manufacturing overhead cost deferred (13,500) 4,500 18,000 Absorption costing net operating income 278,900 273,700 269,800 2. 27000= 267,200-240,200 Exercise 6-7 1. A. The unit Product cost under absorption costing would be:
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  • Spring '12
  • janigrt
  • gross margin, unit product cost, total variable manufacturing

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