Kimberly Corporation started the year expecting to produce and sell 142,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that-155,000 units. Needless to say, owners Eli and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Sales Variable costs: DM DL Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Actual Income $2,635,000 465,233 611,940 288,765 116,250 1,152,812 577,530 428,000 $147,282 Flexible Budget Master Budget $2,449,500 426,000 553,800 227,200 106,500 1,136,000 568,000 403,000 $165,000 In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts.

Kimberly Corporation started the year expecting to produce and sell 142,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that-155,000 units. Needless to say, owners Eli and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Sales Variable costs: DM DL Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Actual Income $2,635,000 465,233 611,940 288,765 116,250 1,152,812 577,530 428,000 $147,282 Flexible Budget Master Budget $2,449,500 426,000 553,800 227,200 106,500 1,136,000 568,000 403,000 $165,000 In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter7: Inventory Cost Flow Assumptions (fifolifo)

Section: Chapter Questions

Problem 1R: Del Rio began Rio Enterprises on January 1 with 200 units of inventory. During the year, 500...

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