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Kolb Company prepared its income statements for the current year using three alternative cost systems as follows:

This question was answered on Nov 20, 2011. View the Answer
Kolb Company prepared its income statements for the current year using three alternative cost systems as follows:
Sales Revenue
Company A 200,000 Company B 200,000 Company C 200,000
Cost of Good Sold A 66,00 B 80,000 Company C 86,000
134,000 B 120,000 Company C 114,000

Direct Materials Company A - Company B (4000)Company C -
Direct Labor Company A - Company B (2000)Company C-
Factor OverheadCompany A_Company B (10000)Company(10000)
Gross Margain Co A 134000 Co(B) 104,000 Co(c) 104000
Other Expenses Co(A)110,000 C(B) 80,000 C (C) 80,000
Operating Income Co(A)24,000 Co(B) 24,000 Co (c) 24,000

(a) Match the following Cost systems with Aleternatives A,B,C (1)standard full cost, (2) actual aborption cost system and (3) actual variable cost system.
b How muchm if any of the factory overhead cost was variable
c. What was the actual factory overhead cost incurred for the year,
d. What were the nonfactory costs incurred for the year?
e. What percentage was actual factory volume for the year to normal factory volume?
f. Which of the alternative statements was not prepared in accordance with generally accepted acounting principles?
g. How did actual direct material cost compare with planned direct material cost?

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This question was asked on Nov 20, 2011 and answered on Nov 20, 2011.

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