ACG2071 Ch 19 Flashcards

Jeter Corporation

• Net income: $222,000 using variable costing
• Inventory: Beginning at 7,000 units, ending at 12,000 units
• Fixed overhead per unit: $6
• Net income under absorption costing: $252,000

Sea Company (Variable Costing)

• Units produced: 48,000
• Direct labor cost: $41 per unit
• Direct materials cost: $34 per unit
• Variable overhead cost: $23 per unit
• Product cost per unit under variable costing: $98.00

Absorption Costing Calculation

• Direct labor cost: $27 per unit
• Direct materials cost: $21 per unit
• Total variable overhead: $40,000
• Total fixed overhead: $110,000
• Expected production: 60,000 units
• Product cost per unit under absorption costing: $50.50

Decko Industries

• Units produced: 55,000
• Sale price: $36 per unit
• Direct materials: $1.80 per unit
• Direct labor: $2.80 per unit
• Variable overhead: $3.80 per unit
• Total fixed overhead: $234,300
• Contribution margin from 53,000 units sold: $1,462,800

Alexis Co. (Part A)

• Units sold: 4,600
• Selling price per unit: $950
• Variable manufacturing cost per unit: $530
• Sales commission per unit: $95
• Contribution margin for Part A: $1,495,000

Sea Company (Absorption Costing)

• Units produced: 61,000
• Direct labor cost: $54 per unit
• Direct materials cost: $47 per unit
• Variable overhead cost: $36 per unit
• Total fixed overhead: $152,500
• Product cost per unit under absorption costing: $139.50

Geneva Co.

• Sales: $765,000
• Variable costs: $230,000
• Fixed costs: $105,000
• Contribution margin for July: $535,000

Brush Industries

• Sales total: $910,000
• Fixed cost of goods sold: $102,000
• Variable cost of goods sold: $252,000
• Fixed selling and administrative costs: $102,000
• Variable selling and administrative costs: $127,000
• Operating income under absorption costing for May: $327,000

McCormick Company

• Direct materials: $4 per unit
• Direct labor: $2 per unit
• Variable overhead: $3 per unit
• Fixed overhead: $256,000
• Units produced: 32,000, units sold: 26,500
• Ending inventory value under absorption costing: $93,500

Hayes Inc.

• Beginning inventory: 250 units
• Units produced: 900
• Units sold: 957
• Selling price: $300 per unit
• Direct materials: $50 per unit
• Direct labor: $31 per unit
• Variable manufacturing overhead: $30 per unit
• Fixed manufacturing overhead: $42,300
• Unit product cost for the year using variable costing: $111

Advanced Company (Variable Costing)

• Units produced: 35,000
• Units sold: 21,000
• Direct materials: $19 per unit
• Direct labor: $21 per unit
• Variable overhead: $105,000 total
• Fixed overhead: $175,000 total
• Cost per unit of finished goods under variable costing: $43.00

Advanced Company (Absorption Costing)

• Cost per unit of finished goods under absorption costing: $48.00
• Cost of finished goods in inventory under absorption costing: $672,000
• Cost of finished goods in inventory under variable costing: $602,000

Advanced Company (Net Income)

• Unit sold for $71
• Operating expenses: $300,000
• Net income under absorption costing: $183,000
• Net income under variable costing: $113,000

Red and White Company

• Units produced: 2,300
• Sales price: $28 per unit
• Direct materials: $3 per unit
• Direct labor: $4 per unit
• Variable overhead: $5 per unit
• Fixed overhead: $8,280 in total

Red and White Contribution Margin

• Contribution margin if 1,010 units are sold: $16,160

Red and White Net Income

• Net income under absorption costing for 1,010 units sold and $12,000 in selling/administrative expenses: $524
• Net income under variable costing for 1,010 units sold and $12,000 in operating expenses: -$4,120