Multiple ChoiceOOOO$1,190.$2,490.$2,255.$2,990.$3,080. TB MC Qu. 18-47 (Algo) Full costing operating income for the next year: Smooth IncorporatedSmooth Incorporated manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2021and 2022 was 5,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022operations:Units soldUnits producedCosts:Variable factory overhead per unitFixed factory overheadVariable marketing per unitFixed Selling and Administrative20213,5005,000$ 0.65$2,250$ 0.75$ 65020225,2005,000$ 0.65$2,250$ 0.80$ 650Full costing operating income for 2022 is calculated to be: (Do not round intermediate calculations. Round your finalanswers to whole dollar amounts.)

Full costing method is a method of costing in which product cost is calculated by adding direct…

Answered: mit strative $ 0.75 $ 650 $0.80 $ 650…

Business

Accounting

mit strative $ 0.75 $ 650 $0.80 $ 650 22 is calculated to be: (Do not round intermediate calculations. Round your final

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 8E: Estimated income statements, using absorption and variable costing Prior to the first month of...

See similar textbooks

Related questions

Q: nalyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The…

A: Differential analysis is a methodical, proactive technique that helps managers assess the financial…

Q: Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is…

A: Lets understand the basics.The Cost allocation means to allocate the total cost incurred on…

Q: Top Plastics Ltd makes and sells a single product. In January 2023, it produced and sold 30,000…

A: The objective of the question is to understand the cost structure of Top Plastics Ltd by calculating…

Q: (Algo) Assume that a company provided... Assume that a company provided the following statement of…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Gandolfi Construction Company purchased a CAT 336DL earth mover at a cost of $415,000 in January…

A: Depreciation: It implies a decrease or gradual fall in the value of fixed assets being used by the…

Q: 17) Meyer & smith is a full-service company. They provide equipment, installation services as well…

A: The Revenue recognition is a process of five step model to recognise revenu as fallowsThese five…

Q: variable expenses - $312.000 2. unit sales - 10,000 3. the contribution margin ratio = 20% 4. net…

A: Break-even point is the point of production where total cost is equal to total revenue. Break-even…

Q: E6-20 (Static) Analyzing Multiproduct CVP [LO 6-6] Tiago makes three models of camera lens. Its…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: Prepare the journal entries for each of the years 2020 to 2024 to record income tax expense and the…

A: Prepare the journal entries for each of the years 2020 to 2024 to record income tax expense and the…

Q: Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as…

A: Variances are the differences between the actual values and budgeted values. If the budgeted values…

Q: What kinds of businesses collect cash before recording the corresponding sales? How would that…

A: Revenue recognition is a critical aspect of financial accounting, determining when a business…

Q: Assume a company sold a piece of equipment that had an original cost of $500,000 and accumulated…

A: Cash flow from investing activities means the cash inflow or outflow from the sale or purchase of…

Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $20 per share.…

A: Shares which are bought back by the company from the open market are called Treasury stock.The…

Q: Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projects…

A: The overhead cost is a cost that is allocated to the product or service at the time of production.…

Q: Financial statements generally include all BUT which of the following? Group of answer choices A.…

A: FINANCIAL STATEMENTThe financial statement shows the financial position of the company. Financial…

Q: Use the following information for the Quick Study below. (Algo) [The following information applies…

A: Net Present value is calculated by reducing the present value of cash outflows from the present…

Q: River Signorini works for New & Old Apparel, which pays employees on a semimonthly basis. River's…

A: Social security tax: Employee's pension and disability benefits are secured through the social…

Q: Calculate the amount of warranty expense that should have been recognized in 2023

A: Warranty expenses are the charges that a firm expects to pay in order to meet its responsibilities…

Q: Presented below is information related to the Southern Division of Lumber Ltd. Contribution margin…

A: To calculate the Southern Division's Return on investment (ROI),you can use the formula:ROI =…

Q: Distinct features between management accounting and financial accounting

A: The objective of this question is to distinguish between management accounting and financial…

Q: Daston Company manufactures two products, Product F and Product G. The company expects to produce…

A: Activity-based costing is a cost accounting method that assigns overhead expenses to specific…

Q: Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipi-tor.…

A: The return on assets of the companies is the return which is used to get the insights about the…

Q: 1 Required information [The following information applies to the questions displayed below] The…

A: Bank reconciliation statement :— It is the statement that shows the reconciliation of balance as per…

Q: ABC Co. manufactures pens. During the most productive month of the year, 3,650 pens were…

A: The calculation of the Variable cost per desk is as follows : PensTotal costHigh level of…

Q: which has the highest marginal tax rate, an individual or a C corporation?

A: The marginal tax rate represents the percentage of tax applied to an individual's or entity's next…

Q: Marcus purchased Vinnie and Marie’s personal residence for $225,000 cash and the assumption of their…

A: The objective of the question is to calculate the amount of gain that Vinnie and Marie should…

Q: Coco rented a building on 7/1/2019 by signing a one year lease and making one upfront annual payment…

A: The objective of the question is to determine the adjusting entry for the lease payment made by…

Q: Q.17. The check register for Bellam Furniture showed a balance of $3,511.91. Checks were written for…

A: To compute the new balance in the check register, you need to update the current balance by…

Q: Grouper Corporation had sales revenue of $5,850,000 and investment revenue of $227,000 for the year…

A: Income Statement - It Is One Of The Financial Statements That Shows Profitability, Total Revenue And…

Q: ar five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to…

A: In order to assess the possible growth of savings, investments, or other financial instruments over…

Q: What is the NPV assuming a 12% rate of return. (ignore Tax) Bramble Inc. is considering modernizing…

A: The net present value (NPV) technique is a method of capital budgeting in which all the present…

Q: Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as…

A: Income statement is a financial statement that shows profitability, total revenue and total expenses…

Q: Tano Company issues bonds with a par value of $94,000 on January 1, 2021. The bonds' annual contract…

A: Par value of bonds$94,000Less: Proceed received$89,071Discount ($94,000 - $89,071)$4,929Discount =…

Q: George's purchases and sales of Centennial Corporation (CC) shares were as fol 1- purchased 5,000…

A: The profit or positive difference between a capital asset's adjusted basis and sale price that is…

Q: Exercise 11-46 (Algo) Net Realizable Value Method with By-Products (LO 11-3, 5) Denver Fabricators…

A: The Joint cost allocation is a method that will assign the total common cost of producing multiple…

Q: A comparative balance sheet and income statement is shown for Cruz, Incorporated. At December 31…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: First, prepare the entries for Zane Drug Stores. July 6: Zane purchased $74,000 of merchandise from…

A: The journal entries are prepared to record the transactions on a regular basis. The freight in…

Q: W. W. Grainger, Inc., is a leading supplier of maintenance, repair, and operating (MRO) products to…

A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Q: ! Required information [The following information applies to the questions displayed below.] BatCo…

A: Direct material cost is calculated by multiplying direct material quantity by direct material price.…

Q: A $ 80.00 24.00 24.00 48.00 $ 32.00 40% Product B $ 62.00 18.00 25.40 43.40 $18.60 30% с $ 81.00…

A: The contribution margin is the money used to pay off fixed costs. It is the excess of sales revenue…

Q: AMR Corporation (parent company of American Airlines) reported the following (in millions). Service…

A: Pension expense is the amount reported by an entity on the financial statements relating to the…

Q: Here are selected 2027 transactions of Swifty Corporation. Jan. 1 June 30 Dec. 31 Retired a piece of…

A: It is the amount of reduction in the value of a tangible fixed asset due to tear and wear,…

Q: Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior…

A: The budget is prepared to estimate the requirements for the period. The direct cost budget is…

Q: As sales manager, Joe Batista was given the following static budget report for selling expenses in…

A: Flexible Budget - A flexible budget performance report is a budget for more than one level of…

Q: Arrow is a full-time exempt employee in Sitka, Alaska, who earns $76,500.00 annually. She is married…

A: Taxable income is the amount of the person's income that is taxed after all the deductions and…

Q: For the year just completed, Hanna Company had net income of $59,500. Balances in the company's…

A: Using Indirect method, cash flow from operating activities is prepared by making the following…

Q: Presented are the income statements of Clyton and Gamer heavy equipment manufacturing companies for…

A: Horizontal analysis is the financial tool used for evaluating the performance of the company. Sales…

Q: Caribbean Gators Limited is a newly organized footwear manufacturing business that plans to…

A: Lets understand certain terms here.The break-even point is the level of sales at which a business's…

Q: 11. When the Sales transactions have been recorded in the appropriate accounts, thi assertion of: a)…

A: Lets understand the basics.Accuracy: All the transactions have been recorded correctly.Valuation:…

Q: onrad Inc. purchased a patent for $2,900,000 for "a specialty line of patented switch plate covers…

A: Patents can be of many types: plant, utility (for new and beneficial innovations or discoveries),…

Question

Multiple Choice
O
O
O
O
$1,190.
$2,490.
$2,255.
$2,990.
$3,080.

TB MC Qu. 18-47 (Algo) Full costing operating income for the next year: Smooth Incorporated
Smooth Incorporated manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2021
and 2022 was 5,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022
operations:
Units sold
Units produced
Costs:
Variable factory overhead per unit
Fixed factory overhead
Variable marketing per unit
Fixed Selling and Administrative
2021
3,500
5,000
$ 0.65
$2,250
$ 0.75
$ 650
2022
5,200
5,000
$ 0.65
$2,250
$ 0.80
$ 650
Full costing operating income for 2022 is calculated to be: (Do not round intermediate calculations. Round your final
answers to whole dollar amounts.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce to full costing method

VIEW

Step 2: Working for cost of goods sold for 2022

VIEW

Step 3: Working for sales revenue and variable marketing expense

VIEW

Step 4: Working for net operating income under full costing method

VIEW

Solution

VIEW

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Sales Tax, Restaurant Tax and Lodging Taxes

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
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.
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
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.
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Estimated income statements, using absorption and variable costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: The company is evaluating a proposal to manufacture 50,000 units instead of 40,000 units, thus creating an ending inventory of 10,000 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. Prepare an estimated income statement, comparing operating results if 40,000 and 50,000 units are manufactured in (1) the absorption costing format and (2) the variable costing format. b. What is the reason for the difference in operating income reported for the two levels of production by the absorption costing income statement?
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that 8,500 million of cost of goods sold and 4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Also, assume that 30% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. Round numbers to nearest million.
Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Last month, 4,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. 2. What is the total product cost for last month? 3. What is the unit product cost for last month?
Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?