KCecil Incorporated provided the following information regarding its only product:Sale price per unitDirect materials usedDirect labor incurredVariable manufacturing overheadVariable selling and administrative expensesFixed manufacturing overheadFixed selling and administrative expenses$50.00$161,000$189,000$124,000$70,000$65,000$12,00021,000Units produced and soldAssume no beginning inventoryAssuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,100 units at a sale price of $45 per product? (NOTE: Assume regular sales areOA. Increase by $229,500OB. Increase by $361,590OC. Decrease by $97,410OD. Increase by $97,410

A special order is a one-time order that is received from not a regular customer. Special order…

Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $161,000 $189,000 $124,000 $70,000 $65,000 $12,000 21,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,100 units at a sale price of $45 per product? (NOTE: Assume regula OA. Increase by $229,500 OB. Increase by $361,590 OC. Decrease by $97,410 CI

Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $161,000 $189,000 $124,000 $70,000 $65,000 $12,000 21,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,100 units at a sale price of $45 per product? (NOTE: Assume regula OA. Increase by $229,500 OB. Increase by $361,590 OC. Decrease by $97,410 CI

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...

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Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $161,000 $189,000 $124,000 $70,000 $65,000 $12,000 21,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,100 units at a sale price of $45 per product? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) O A. Decrease by $97,410 OB. Increase by $361.590 *****
Martin Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $16,300 $189,000 $124,000 $72,000 $65,000 $12,000 Decrease by $77,150 Increase by $82,650 Increase by $135,000 Increase by $77,150 23,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $5500 is incurred? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.)
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BRIAN POGI Co. manufactured the following units: Saleable 10,000 units Unsaleable Normal Loss 400 units Abnormal Loss 600 units Manufacturing costs totaled P198,000. 1. How much is the period cost? 2. What amount should the entity debit to finished goods?
The following information pertains to the Cannady Corporation: Beginning work-in-process inventory $ 50,000 Ending work-in-process inventory 48,000 Beginning finished goods inventory 180,000 Ending finished goods inventory 195,000 Cost of goods manufactured 1,220,000 What is the cost of goods sold? a. $1,235,000 b. $1,205,000 c. $1,218,000 d. $1,222,000
XYZ Company developed the following data for the current year: Ending work in process inventory OMR250,000 ; Direct materials used OMR96,000 ; Manufacturing Overhead applied OMR144,000 ; Cost of goods manufactured OMR350,000; Direct labor cost OMR240,000. Company's beginning work in process inventory is Select one: O a. OMR380,000 O b. None of the answers given O c. OMR120,000 O d. OMR145,000 O e. OMR580,000
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Anderson Corp. has the following information: Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Direct materials used Direct labor incurred Additional information for the year is as follows: Manufacturing overhead applied Cost of goods manufactured Compute the cost of goods sold. O $270,000 O $258,000 Beginning Inventory (1/1) $20,000 $16,000 $50,000 O $280,000 O $268,000 Ending Inventory (12/31) $30,000 $18,000 $40,000 $90,000 $75,000 $95,000 $258,000
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