Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 21, Problem 6SE
Adamson, Inc. has the following cost data for Product X:
Calculate the unit product cost using absorption costing and variable costing when production is 2,000 units, 2,500 units, and 5,000 units.
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Lillibridge & Friends, Incorporated provides you with the following data for its single product:
Sales price per unit
Fixed costs (per quarter):
Selling, general, and administrative (SG&A)
Manufacturing overhead
Variable costs (per unit):
Direct labor
Direct materials
Manufacturing overhead
SG&A
Number of units produced per quarter
a. Prime cost per unit
b. Contribution margin per unit
c. Gross margin per unit
d. Conversion cost per unit
e. Variable cost per unit
Required:
Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units
is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
f. Full absorption cost per unit
g. Variable production cost per unit
h. Full cost per unit
$ 140
1,500,000
4,500,000
$
17
20
18
14
500,000 units
500,000 units 600,000 units
37.00 $
$
37.00
55.00 $
55.00
Computing absorption cost per unit and variable cost per unit
Adamson, Inc. has the following cost data for Product X:
Calculate the unit product cost using absorption costing and variable costing when production is 2,000 units, 2,500 units, and 5,000 units.
Lillibridge & Friends, Incorporated provides you with the following data for its single product:
Sales price per unit
Fixed costs (per quarter):
Selling, general, and administrative (SG&A)
Manufacturing overhead
Variable costs (per unit):
Direct labor
Direct materials
Manufacturing overhead
SG&A
Number of units produced per quarter
a. Prime cost per unit
b. Contribution margin per unit
c. Gross margin per unit
d. Conversion cost per unit
e. Variable cost per unit
f. Full absorption cost per unit
g. Variable production cost per unit
h. Full cost per unit
Required:
Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units
is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
$
$
$ 160
1,500,000
4,500,000
500,000 units 600,000 units
41.00 $
41.00
83.00
$
$
$
$
19
22
20
16
500,000 units…
Chapter 21 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 21 - Pierce Company had the following costs: Calculate...Ch. 21 - Hayden Company has 50 units in Finished Goods...Ch. 21 - The Stark Company manufactures a product that is...Ch. 21 - Chaney Company provides lawn care services....Ch. 21 - Prob. 1QCCh. 21 - Prob. 2QCCh. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...
Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Prob. 8QCCh. 21 - Prob. 9QCCh. 21 - Prob. 10QCCh. 21 - What is absorption costing?Ch. 21 - What is variable costing?Ch. 21 - How are absorption costing and variable costing...Ch. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - When units produced are less than units sold, how...Ch. 21 - Explain why the fixed manufacturing overhead cost...Ch. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Why is it appropriate to use variable costing when...Ch. 21 - Prob. 12RQCh. 21 - Prob. 13RQCh. 21 - Prob. 14RQCh. 21 - Prob. 15RQCh. 21 - How can variable costing be used in service...Ch. 21 - Classify each cost by placing an X in the...Ch. 21 - Martin Company had the following costs: Calculate...Ch. 21 - Martin Company had the following costs: Calculate...Ch. 21 - Dracut Company reports the following information...Ch. 21 - Dracut Company reports the following information...Ch. 21 - Adamson, Inc. has the following cost data for...Ch. 21 - Refer to your answers to Short Exercise S21-6....Ch. 21 - Refer to your answers to Short Exercise S21-6....Ch. 21 - Prob. 9SECh. 21 - Prob. 10SECh. 21 - Prob. 11SECh. 21 - Prob. 12SECh. 21 - Meyer Company reports the following information...Ch. 21 - Concord, Inc. has collected the following data for...Ch. 21 - Concord, Inc. has collected the following data for...Ch. 21 - ReVitalAde produced 13,000 cases of powdered drink...Ch. 21 - Refer to Exercise E21-16. Requirements 1. Prepare...Ch. 21 - Prob. 18ECh. 21 - Refer to your answers to Exercise E21-16. In May...Ch. 21 - Refer to Exercise E21-19. Requirements 1. Prepare...Ch. 21 - The Sweet Treats Company manufactures candy that...Ch. 21 - Sampler Company sells two products, Sigma and...Ch. 21 - Prob. 23ECh. 21 - Prob. 24ECh. 21 - Sherman Company provides carpet cleaning services...Ch. 21 - Prob. 26ECh. 21 - Prob. 27APCh. 21 - Prob. 28APCh. 21 - Relative Furniture Company manufactures and sells...Ch. 21 - Prob. 30APCh. 21 - Professional Pool Cleaning Service provides pool...Ch. 21 - Prob. 32BPCh. 21 - Game Source manufactures video games that it sells...Ch. 21 - Prob. 34BPCh. 21 - The 2018 data that follow pertain to Elis Electric...Ch. 21 - Divine Pool Cleaning Service provides pool...Ch. 21 - Prob. 37PCh. 21 - This problem continues the Piedmont Computer...Ch. 21 - CF Industries Holdings, Inc. is one of the largest...Ch. 21 - The Hurley Hat Company manufactures baseball hats....Ch. 21 - Sampson Company operates a manufacturing facility...Ch. 21 - In 100 words or fewer, explain the main...
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