During 2022, Blue Spruce Corp. produced 43,120 units and sold 43,120 for $14.00 per unit. Variable manufacturing costs were $5.00 per unit. Annual fixed manufacturing overhead was $86,240 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $21,560. Suppose the accountant for Blue SpruceCorp. uses normal-absorption costing and uses the budgeted volume of 53,900 units to allocate the fixed overhead rather than the actual production volume of 43,120 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. (a) Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Manufacturing cost $enter the manufacturing cost per unit in dollars rounded to 2 decimal places per unit Prepare a normal-absorption-costing income statement for the first year of operation.

During 2022, Blue Spruce Corp. produced 43,120 units and sold 43,120 for $14.00 per unit. Variable manufacturing costs were $5.00 per unit. Annual fixed manufacturing overhead was $86,240 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $21,560. Suppose the accountant for Blue SpruceCorp. uses normal-absorption costing and uses the budgeted volume of 53,900 units to allocate the fixed overhead rather than the actual production volume of 43,120 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. (a) Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Manufacturing cost $enter the manufacturing cost per unit in dollars rounded to 2 decimal places per unit Prepare a normal-absorption-costing income statement for the first year of operation.

Name: Please do not give solution in image format thanku During 2022, Blue S
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Please do not give solution in image format thanku During 2022, Blue Spruce Corp. produced 43,120 units and sold 43,120 for $14.00 per unit. Variable manufacturing costswere $5.00 per unit. Annual fixed manufacturing overhead was $86,240 ($2.00 per u

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bandoy Company produced 100,000 units of product and sol 75,000 units at P3.0 per unit in 2018. Variable unit cost are: MAnufacturing - P1.6; selling - P0.15. Fixed costs for 2018 include P30,000 of fixed manufacturing costs and P41,250 of fixed selling and administrative expenses. What would be the net income for 2018, using the absorption costing? *
A company has a linear total cost function and has determined that over the next three months it can produce12,000 units at a total cost of $224; 000. This same manufacturer can produce 18,000 units at a total cost of$296; 000. The selling price per unit is $13.25.i. Determine the revenue, cost and prot functions using q for number of units.ii. What is the xed cost ?iii. What is the marginal cost ?iv. Find the break-even quantity.v. What is the break-even dollar volume of sale ?vi. What will prot be if the company shuts down operation?vii. If, because of a strike, the company will be able to produce only 10,000 units, should it shut down for the nextthree months ? why or why not ?
ABC Inc. manufactures a single product. Assume the following data for 2015: VC Per Unit: S&A $14; Production, $38. Total FC: Production, $140,000; S&A, $ 84,000. During the year, 7,000 units were produced and 6,800 units were sold. Under variable costing, the cost of one unit of product would be: O a. $38 O b. $70 O c. $52 O d. $58
During 2020, Rafael Corp. produced 48,700 units and sold 34,090 for $14 per unit. Variable manufacturing costs were $7 per unit. Annual fixed manufacturing overhead was $102,270 ($3 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $19,200. Prepare an absorption-costing income statement. Rafael Corp. Income Statement-Absorption Costing Reconcile the difference between the net income under variable costing and the net income under absorption costing. That is, show a calculation that explains what causes the difference in net income between the two approaches. Variable costing net income Fixed manufacturing overhead costs deferred in ending inventory Absorption costing operating income $ $
During 2022, Sheridan Corp. produced 38,000 units and sold 38,000 for $14 per unit. Variable manufacturing costs were $4 per unit. Annual fixed manufacturing overhead was $76,000 ($2 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $18,000. Prepare a variable-costing income statement. Sales Less Variable cost of goods sold SheridanCorp. Income Statement-Variable Costing For the Month Ended December 31, 2022 LA tA 76000
A manufacturer has a monthly fixed cost of $87,500 and a production cost of $15 for each unit produced. The product sells for $20/unit. (a) What is the cost function? CX) (b) What is the revenue function? R(x) - (c) What is the profit function? Px) - (d) Compute the profit (loss) corresponding to production levels of 15,000 and 20,000 units. (Input a negative value to indicate a loss) PL1S,000)- P(20,000) =
Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500. (1) Compute the unit sales to earn the target income. Numerator: Denominator: Units to Achieve Target = Units to achieve target (2) Compute the dollar sales to earn the target income. Numerator: Denominator: Dollars to Achieve Target = Dollars to achieve target Ch
Sunn Company manufactures a single product that sells for $240 per unit and whose variable costs are $192 per unit. The company's annual fixed costs are $734,400. Management targets an annual income of $1,200,000. (1) Compute the unit sales to earn the target income. Numerator: Denominator: (2) Compute the dollar sales to earn the target income. Numerator: Denominator: = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
A company has $25 per unit selling price, $7.00 per unit in variable manufacturing cost and $2.00 per unit in variable selling and administrative cost. The annual fixed manufacturing cost is $400,000. The annual fixed selling and administrative cost is $50,000.Complete the table below for each year. Assume a FIFO flow.
The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?
Blossom Corporation has fixed costs of $404,700. It has a unit selling price of $7.00, unit variable cost of $5.45, and a target net income of $1,539,000.Compute the required sales in units to achieve its target net income. Required sales
Shock Company manufactures electronic equipment. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 450 100.00 Variable costs 232 51.56 Unit contribution margin $ 218 48.44 Assume that Shock Company is currently selling 580 products per month and monthly fixed costs are $79,600. Shock Company's operating income (πB) is calculated to be: