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2. Crystal Clear Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as

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2. Crystal Clear Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: Click the icon to view the actual data.) The selling price per unit is $3.200. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it oocura. The variable manufacturing costs per unit of Crystal Clear Corporation are as follows: Click the icon to view the variable manufacturing cost data) Crystal Clear prepared the following income statements under variable costing and absorption costing. Click the icon to view the variable costing statement.) -(Click the icon to view the absorption costing statement. Read the requirements Requirement 1. Prepare income statements for Crystal Clear in January, February and March 2020 under throughput costing, Begin by completing the top portion of the statement, then the bottom portion. (Enter a "O" for any zero balance accounts.) January 2020 February 2020 March 2020 Revenues (1) (2) (37 (4) 16) (8) LLUT LIONI 19) Operating income Requirement 2. Contrast the results in requirement 1 with the operating Income results under variable casting and absorption costing. In January (10) has the lowest operating incorre, whereas in March (11) has the highest operating income. (12) puts greater emphasis on sales as the source of operating income than does either (13) Requirement 3. Give one motivation for Crystal Clear to adopt throughput costing. in the period of incurrence, (14) coating puts a penalty on production without a corresponding sale in the same period. Costs other than direct materials that are variable with respect to production are (15) a a whereas under variable coating they would be (16) As a result, (17) provides less incentive to produce for inventory than either (10) 1: Data Table January February March 0 150 150 Unit data: Beginning Inventory Production Sales 1,400 1.375 1,450 1,250 1,375 1,500 $ 900 S 900 $ 900 $ 525 S 525 $ 525 Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating marketing costs 490.000 $ 490,000 $ 490,000 S $ 180,000 S 180,000 $ 180,000 3: Variable costing income statement January 2020 February 2020 $ 4,400.000 March 2020 S 4,800,000 Revenues $ 4,000,000 Variable costs: Beginning inventory S 0 $ 135.000 $ $ 135,000 1,308,000 1.260.000 1,237.500 Variable manufacturing costs Cost of goods available for sale 1,260.000 1,372.500 (135.000) 1.440,000 (90,000) (135.000) Less: Ending inventory Variable cost of goods sold 1,125.000 1,237.500 1,350,000 787,500 Variable uperating costs 656,250 721,875 1,781.250 1,959,375 2,137,500 2,218,750 2,440.625 2,682,500 Total variable costa Contribution margir Fixed costs: Fixed manufacturing costs 490,000 490,000 490,000 180,000 Fixed operating coats 180,000 180,000 670,000 670,000 670,000 Tulal fixed costs $ 1.548,750 $ 1,770,625 S 1.992,500 Operating income 4: Absorption costing income statement 4: Absorption costing Income statement February 2020 March 2020 January 2020 $ 4,000,000 $ 4,400.000 $ 4,800 000 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs $ 0 5 187,500 $ 187.500 1.237.500 1,305.000 1.260,000 490,000 481.250 507.500 Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending Inventory 1,906.250 1.750,000 (187,500) 2.000.000 (125.000) 1187.500) 8,750 0 Adj. for production volume variance (17.500) F U 1,562,500 1.727.500 1,057,500 Coat of goods sold Gross margin Operating costs: 2,437,500 2,672.500 2,942,500 Variable operating costs 658.250 721,875 787,500 180,000 180.000 Fixed operating costs 180,000 835,250 901.875 967.500 Total operating costs $ 1,601,250 $ 1,770.625 5 1,975.000 Operating Income 5: Requirements 1. Prepare income statements for Crystal Clear in January February, and March 2020 under throughput oosting. 2. Contrast the results in requirement 1 with the operating income results under variable costing and absorption costing. 3. Give one motivation for Crystal Clear to adopt throughput posting (1) 12) Diret malerisces of gehad Throughpulrurgin O Bcginning inventory O Direct matcrials in goods manufactured Total direct matcrial cost of goods sold O Cost of goods available for sale O Manufacturing costs Total other costs Deduct ending inventory Other operating costs a O Direct material is af dok Throughpul mergin Beginning inventory O Direct matcrials in goods manufactured 0 Total direct material cost of goods sold Cost of goods available for sale O Manufacturing costs Total other costs Deduct ending inventory O Other operating costs (3) O O Direct material cost of goods sold: Throughput margin Beginning inventory O Direct materials in goods manufactured Total direct material cost of goods sold Cost of goods available for sale O Manufacturing costs Talal other costs O Dexuct anding inventory Other operating costs (4) O O Direct material cost of goods sold: Throughput margin Beginning inventory O Direct materials in goods manutactured 0 Total direct material cost of goods 2010 sold Cost of goods available for sale O Manufacturing costs Total costs Deduct ending inventory 0 Other operating costs (5) O O Direct material cost of goods Bald: Throughput margin Beginning inventory O Direct materials in goxx's manufactured Talal direct material cost of goods sold Cost of goods available for sale O Manufacturing costs Total other costs O Deduct ending inventory Other operating costs O Direct material cost of goode sold: : Throughput mergin Beginning inventory Direct materials in gars manufactured Total direci material cost of goods saki af Cost of goods availabic for sale O Manufacturing costs Total other costs Deduct ending inventory 0 Other operating costs (7) O Direct material cost of goods sold: Throughput margin Heginning inventory O Direct materials in goods manufactured Total direct material cost of goods sold O Cost of goods available for sale Manufacturing costs Talal other cols O Deductanding inventory O Other operating costs (a) o Direct material cost of goods sold: Throughput margin Beginning inventory O O Direct materials in goods manufactured Totel direct material cost of goods sold O Cusl of goods available for sale Manufacturing costs Tolal olhe con Deduct ending inventory Other operating costs 19) O O Direct material cost of goods sold: Throughput margin Beginning inventory O Direct materials in goxxls manucured Talal direct material cost of goods sold O Cost of goods available for sale O Manufacturing costs Total other costs O Deduct ending inventory O Other operating coste (10) absorpton costing Othmugoput nating O variable cusing (11) absorption costing O throughput coating Overlabe coeing (12) Aasorption casting Throughput nating Veisble costing (15) O cepralizad (13) Ahoration or throughout coating OVI U valable oueling O throughput or variatle casting. (14) Abacon Throughout O Variable (18) O capitala1 O expened. Owens (171 O encorating Unoughpulung O variable costing (16) Ahoration or throughout costing OLIVIU valable ueling. o throughpur or variable casting 2. Crystal Clear Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: Click the icon to view the actual data.) The selling price per unit is $3.200. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it oocura. The variable manufacturing costs per unit of Crystal Clear Corporation are as follows: Click the icon to view the variable manufacturing cost data) Crystal Clear prepared the following income statements under variable costing and absorption costing. Click the icon to view the variable costing statement.) -(Click the icon to view the absorption costing statement. Read the requirements Requirement 1. Prepare income statements for Crystal Clear in January, February and March 2020 under throughput costing, Begin by completing the top portion of the statement, then the bottom portion. (Enter a "O" for any zero balance accounts.) January 2020 February 2020 March 2020 Revenues (1) (2) (37 (4) 16) (8) LLUT LIONI 19) Operating income Requirement 2. Contrast the results in requirement 1 with the operating Income results under variable casting and absorption costing. In January (10) has the lowest operating incorre, whereas in March (11) has the highest operating income. (12) puts greater emphasis on sales as the source of operating income than does either (13) Requirement 3. Give one motivation for Crystal Clear to adopt throughput costing. in the period of incurrence, (14) coating puts a penalty on production without a corresponding sale in the same period. Costs other than direct materials that are variable with respect to production are (15) a a whereas under variable coating they would be (16) As a result, (17) provides less incentive to produce for inventory than either (10) 1: Data Table January February March 0 150 150 Unit data: Beginning Inventory Production Sales 1,400 1.375 1,450 1,250 1,375 1,500 $ 900 S 900 $ 900 $ 525 S 525 $ 525 Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating marketing costs 490.000 $ 490,000 $ 490,000 S $ 180,000 S 180,000 $ 180,000 3: Variable costing income statement January 2020 February 2020 $ 4,400.000 March 2020 S 4,800,000 Revenues $ 4,000,000 Variable costs: Beginning inventory S 0 $ 135.000 $ $ 135,000 1,308,000 1.260.000 1,237.500 Variable manufacturing costs Cost of goods available for sale 1,260.000 1,372.500 (135.000) 1.440,000 (90,000) (135.000) Less: Ending inventory Variable cost of goods sold 1,125.000 1,237.500 1,350,000 787,500 Variable uperating costs 656,250 721,875 1,781.250 1,959,375 2,137,500 2,218,750 2,440.625 2,682,500 Total variable costa Contribution margir Fixed costs: Fixed manufacturing costs 490,000 490,000 490,000 180,000 Fixed operating coats 180,000 180,000 670,000 670,000 670,000 Tulal fixed costs $ 1.548,750 $ 1,770,625 S 1.992,500 Operating income 4: Absorption costing income statement 4: Absorption costing Income statement February 2020 March 2020 January 2020 $ 4,000,000 $ 4,400.000 $ 4,800 000 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs $ 0 5 187,500 $ 187.500 1.237.500 1,305.000 1.260,000 490,000 481.250 507.500 Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending Inventory 1,906.250 1.750,000 (187,500) 2.000.000 (125.000) 1187.500) 8,750 0 Adj. for production volume variance (17.500) F U 1,562,500 1.727.500 1,057,500 Coat of goods sold Gross margin Operating costs: 2,437,500 2,672.500 2,942,500 Variable operating costs 658.250 721,875 787,500 180,000 180.000 Fixed operating costs 180,000 835,250 901.875 967.500 Total operating costs $ 1,601,250 $ 1,770.625 5 1,975.000 Operating Income 5: Requirements 1. Prepare income statements for Crystal Clear in January February, and March 2020 under throughput oosting. 2. Contrast the results in requirement 1 with the operating income results under variable costing and absorption costing. 3. Give one motivation for Crystal Clear to adopt throughput posting (1) 12) Diret malerisces of gehad Throughpulrurgin O Bcginning inventory O Direct matcrials in goods manufactured Total direct matcrial cost of goods sold O Cost of goods available for sale O Manufacturing costs Total other costs Deduct ending inventory Other operating costs a O Direct material is af dok Throughpul mergin Beginning inventory O Direct matcrials in goods manufactured 0 Total direct material cost of goods sold Cost of goods available for sale O Manufacturing costs Total other costs Deduct ending inventory O Other operating costs (3) O O Direct material cost of goods sold: Throughput margin Beginning inventory O Direct materials in goods manufactured Total direct material cost of goods sold Cost of goods available for sale O Manufacturing costs Talal other costs O Dexuct anding inventory Other operating costs (4) O O Direct material cost of goods sold: Throughput margin Beginning inventory O Direct materials in goods manutactured 0 Total direct material cost of goods 2010 sold Cost of goods available for sale O Manufacturing costs Total costs Deduct ending inventory 0 Other operating costs (5) O O Direct material cost of goods Bald: Throughput margin Beginning inventory O Direct materials in goxx's manufactured Talal direct material cost of goods sold Cost of goods available for sale O Manufacturing costs Total other costs O Deduct ending inventory Other operating costs O Direct material cost of goode sold: : Throughput mergin Beginning inventory Direct materials in gars manufactured Total direci material cost of goods saki af Cost of goods availabic for sale O Manufacturing costs Total other costs Deduct ending inventory 0 Other operating costs (7) O Direct material cost of goods sold: Throughput margin Heginning inventory O Direct materials in goods manufactured Total direct material cost of goods sold O Cost of goods available for sale Manufacturing costs Talal other cols O Deductanding inventory O Other operating costs (a) o Direct material cost of goods sold: Throughput margin Beginning inventory O O Direct materials in goods manufactured Totel direct material cost of goods sold O Cusl of goods available for sale Manufacturing costs Tolal olhe con Deduct ending inventory Other operating costs 19) O O Direct material cost of goods sold: Throughput margin Beginning inventory O Direct materials in goxxls manucured Talal direct material cost of goods sold O Cost of goods available for sale O Manufacturing costs Total other costs O Deduct ending inventory O Other operating coste (10) absorpton costing Othmugoput nating O variable cusing (11) absorption costing O throughput coating Overlabe coeing (12) Aasorption casting Throughput nating Veisble costing (15) O cepralizad (13) Ahoration or throughout coating OVI U valable oueling O throughput or variatle casting. (14) Abacon Throughout O Variable (18) O capitala1 O expened. Owens (171 O encorating Unoughpulung O variable costing (16) Ahoration or throughout costing OLIVIU valable ueling. o throughpur or variable casting

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