Cost Accounting

In: Business and Management

Submitted By hongsexiangbin
Words 1186
Pages 5
Problems
HO #4
(1) Variable Costing Income Statements: 2011 2012 Sales 1,000 units Sales 1,200 units Production 1,400 units Production 1,000 units
Revenues ($3 per unit) $3,000 $3,600
Variable Costs: Beginning Inventory $ 0 $ 200 Variable cost of goods manufactured 700 500 Cost of goods available for sale 700 700 Deduct ending inventorya (200) (100) Variable cost of goods sold 500 600 Variable operating costs 1,000 1,200 Variable costs 1,500 1,800
Contribution Margin 1,500 1,800
Fixed Costs: Fixed manufacturing costs 700 700 Fixed operating costs 400 400 Total fixed costs 1,100 1,100
Operating income $ 400 $ 700 a Unit inventoriable costs: Year 1: $700 / 1,400 = $0.50 per unit; $0.50 x (1,400 – 1,000) Year 2: $500 / 1,000 = $0.50 per unit; $0.50 x (400 + 1,000 – 1,200)

(2) Absorption-costing income statements: 2011 2012 Sales 1,000 units Sales 1,200 units Production 1,400 units Production 1,000 units
Revenues ($3 per unit) $3,000 $3,600
Cost of goods sold: Beginning Inventory $ 0 $ 400 Variable manufacturing costs 700 500 Fixed manufacturing costsa 700 700 Cost of goods available for sale 1,400 1,600 Deduct ending inventoryb (400)…...

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