Do not give answer in image Prepare a variable costing income statement with one column showing the results if 30,000 units are produced and one columnshowing the results if 40,000 units are produced.AyayaiDivisionIncome Statement (Variable Costing)$30,000 Produced14740,000 Produced Current Attempt in ProgressAyayai is a division of Flynn, Inc. The division manufactures and sells a pump that is used in a wide variety of applications. During thecoming year, it expects to sell 30,000 units for $28 per unit. Steve Moss, division manager, is considering producing either 30,000 or40,000 units during the period. Other information is presented in the schedule below:Division Information-2023Beginning inventoryExpected sales in unitsUnit selling priceVariable manufacturing cost per unitFixed manufacturing overhead costs (total)Fixed manufacturing overhead costs per unitBased on 30,000 units ($240,000+30,000)Based on 40,000 units ($240,000+ 40,000)Manufacturing cost per unitBased on 30,000 units ($8 variable+ $8.00 fixed)Based on 40,000 units ($8 variable + $6.00 fixed)Selling and administrative expenses (all fixed)030,000$28$8$240,000$8.00$6.00$16.00$14.00$20,000

The income statement is prepared to record the revenue and expenses for the current period. The…

Division Information-2023 Beginning inventory Expected sales in units Unit selling price Variable manufacturing cost per unit Fixed manufacturing overhead costs (total) Fixed manufacturing overhead costs per unit Based on 30,000 units ($240,000+30,000) Based on 40,000 units ($240,000+ 40,000) Manufacturing cost per unit Based on 30.000 units ($8 variable+ $8.00 fixed) Based on 40,000 units ($8 variable+ $6.00 fixed) Selling and administrative expenses fall foxed) 30,000 $28 $8 $240,000 $8.00 $6.00 $16.00 $14.00 $20.000

Division Information-2023 Beginning inventory Expected sales in units Unit selling price Variable manufacturing cost per unit Fixed manufacturing overhead costs (total) Fixed manufacturing overhead costs per unit Based on 30,000 units ($240,000+30,000) Based on 40,000 units ($240,000+ 40,000) Manufacturing cost per unit Based on 30.000 units ($8 variable+ $8.00 fixed) Based on 40,000 units ($8 variable+ $6.00 fixed) Selling and administrative expenses fall foxed) 30,000 $28 $8 $240,000 $8.00 $6.00 $16.00 $14.00 $20.000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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Current Attempt in Progress During 2022, Bridgeport Corp. produced 45,100 units and sold 36,080 for $14.00 per unit. Variable manufacturing costs were $4.00 per unit. Annual fixed manufacturing overhead was $108,240. Variable selling and administrative costs were $3.00 per unit sold, and fixed selling and administrative expenses were $19,900. (a) Prepare an absorption-costing income statement. Sales Cost of goods sold Beginning inventory Add Goods available for sale Less Costs of goods manufactured Bridgeport Corp. Income Statement-Absorption Costing For the Year Ended December 31, 2022 V Ending inventory $ 0 288640 288640 $ $ 505120
Crane Ltd. estimates sales for the second quarter of 2022 will be as follows. Month Units April 3,190 May 3,290 June 3,060 The target ending inventory of finished products is as follows. March 31 2,520 April 30 2,700 May 31 2,680 June 30 3,000 Two units of materials are required for each unit of finished product. Production for July is estimated at 3,310 units to start building inventory for the fall sales period. Crane’s policy is to have an inventory of raw materials at the end of each month equal to 50% of the following month’s production requirements.Raw materials are expected to cost $4 per unit throughout the period.Calculate the May raw materials purchases in dollars.
Quick-Copy Duplicating Company uses 110,000 reams of standard-size paper a year at its various duplicating centers. Its current paper supplier charges $2.00 per ream. Annual inventory carrying costs are 15 percent of inventory value. The costs of placing and receiving an order of paper are $41.25. Assuming that inventory replenishment occurs virtually instantaneously, determine the following: a. The firm's EOQ b. The total annual inventory costs of this policy c. The optimal ordering frequency d. Compute and plot ordering costs, carrying costs, and total inventory costs for order quantities of 2,000, 4,000, 5,000, 5,500, 6,000, 7,000, and 9,000 reams. Connect the points on each function with a smooth curve, and determine the EOQ from the graph (and the table used in constructing the graph).
Two articles A and B are manufactured in a department. Sales for the year 2021 were planned as follows: Product 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter (Units) (Units) (Units) (Units) Product 50,000 60,000 65,000 75,000 A Product 25,000 22,500 20,000 19,000 B Selling price were sh. 40 per unit for A and sh. 20 per unit for B respectively. Average sales return is 5 % of sales. What is the annual sales budget for the year 2021? Select one: Sh 11,730,000 O Sh 11,143,500 Sh 9,500,000 O Sh 10,750,000
Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?
Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and sell 49,300 units at a price of 12.50 each. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Total selling expense is projected at 26,000, and total administrative expense is projected at 134,000. Required: 1. Prepare an income statement in good form. Be sure to include the percent of sales column. 2. What if the cost of goods sold percentage for the past few years was 65 percent? Explain how management might react.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?