a 108000 4000 units 1800 900 8000 units 2000 1100 b 137000 5000 units 2200 900

A 108000 4000 units 1800 900 8000 units 2000 1100 b

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(a) $108,000 [4,000 units ´ ($18.00 - $9.00)] + [8,000 units ´ ($20.00 - $11.00)](b) $137,000 [5,000 units ´ ($22.00 - $9.00)] + [8,000 units ´ ($20.00 - $11.00)]146. The actual price for a product was $50 per unit, while the planned price was $44 perunit. The volume increased by 4,000 to 60,000 total units. Determine (a) the quantity factor and (b) the price factor for sales. (a) $176,000 increase (4,000 units ´ $44 per unit)(b) $360,000 increase [($50 - $44) ´ 60,000 units]147. On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:UnitsProduction50,000Sales ($18 per unit)42,000Inventory, January 318,000Manufacturing costs:Variable$575,000Fixed80,000Total$655,000Selling and administrative expenses:Variable$ 35,000Fixed10,500Total$ 45,500(a)Prepare an income statement using absorption costing.(b)Prepare an income statement using variable costing.
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(a)Townsend Co.Absorption Costing Income StatementFor Month Ended January 31, 20--Sales$756,000Cost of goods sold:Cost of goods manufactured$655,000Less inventory, January 31, 20--104,800Cost of goods sold550,200Gross profit$205,800Less selling and administrative expenses45,500Income from operations$160,300(b)Townsend Co.Variable Costing Income StatementFor Month Ended January 31, 20--Sales$756,000Variable cost of goods sold:Variable cost of goods manufactured$575,000Less inventory, January 31, 20--92,000Variable cost of goods sold483,000Manufacturing margin$273,000Variable selling and administrative expense35,000Contribution margin$238,000Fixed costs:Fixed manufacturing costs$ 80,000Fixed selling and administrative expenses10,500(90,500)Income from operations$147,500148. On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing:Morristown & Co.Absorption Costing Income StatementFor Month Ended October 31, 20-Sales (2,600 units)$117,000Cost of goods sold:Cost of goods manufactured$85,500Less ending inventory (400 units)11,400Cost of goods sold74,100Gross profit$ 42,900Selling and administrative expenses21,500Income from operations$21,400
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If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing.Morristown & Co.Variable Costing Income StatementFor Month Ended October 31, 20-Sales$117,000Variable cost of goods sold:Variable cost of goods manufactured$42,600Less ending inventory(400 units ´ $14.20)5,680Variable cost of goods sold36,920Manufacturing margin$ 80,080Variable selling and administrative expenses14,600Contribution margin$ 65,480Mixed costs:Fixed manufacturing costs$42,900Fixed selling and administrative expenses6,90049,800Income from operations$15,680Computations:Variable cost of goods manufactured: $85,500 - $42,900 = $42,600Unit cost of ending inventory:$42,600 variable cost of goods manufactured= $14.203,000 units manufacturedFixed selling and admin. expenses: $21,500 - $14,600 = $6,900149. Presented below are the major categories or captions that would appear on an income statement prepared in the variable costing format:Contribution marginFixed costsIncome from operationsManufacturing marginSalesVariable cost of goods soldVariable selling and administrative expenses(a)Arrange the above captions in the proper order in accordance with the variable costing concept.
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