Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please hepl me with these question ?Thank you Question 1: Karim and son would like to evaluate one of the product lines that

Can you please hepl me with these question ?Thank youQuestion 1:

Karim and son would like to evaluate one of the product lines that they sell to the defense department. Every month the Karim and son produce an identical number of units, although the sales in units differ from month to month.

Selling price

$101

Units in beginning inventory

111

Units produced

6,300

Units sold

6,200

Units in ending inventory

610

Variable costs per unit:

Direct materials

$72

Direct labour

$47

Variable manufacturing overhead

$3

Variable selling and administrative

$7

Fixed costs:

Fixed manufacturing overhead

$64,200

Fixed selling and administrative

$35,500

Required:

1)Under variable costing, identify the unit product cost for the month.

2)What is the unit product cost for the month under absorption costing?

3) make an income statement for the month using the contribution format and the variable costing method.

4) developp an income statement for the month using the absorption costing method.

Question 2:

The following information pertains to Sm's company or a period:

Selling price per unit

40

Standard fixed manufacturing costs per unit

20

Variable selling and administrative costs per unit

3

Fixed selling and administrative cost per unit

14910

Beginning inventories:

Units

?

Standard fixed manufacturing cost

36,800

Standard variable manufacturing cost

18,600

Units produced

8,800

Units sold

8,500

Required:

1) If the unit standard costs data for the beginning and ending inventories remain constant during the period. What was the total standard cost of the ending inventory under absorption costing?

Question 3

Karim manufacturer inc would like to evaluate one of the product lines that they sell to defense department. Every month the Hakim and Company produce an identical number of units, although the sales in units differ from month to month.

Selling price

$101

100

Units in beginning inventory

410

370

Units produced

8,700

6800

Units sold

8,800

7100

Variable costs per unit:

Direct materials

$35

28

Direct labour

$36

30

Variable manufacturing overhead

$3

2

Variable selling and administrative

$8

6

Fixed costs:

Fixed manufacturing overhead

$61,500

53,400

Fixed selling and administrative

$169,200

145,500

Required:

1) identify the total Contribution Margin.

2) show the Operating Income under Variable Costing.

3) construct a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.

Question 4:

Hakim and Company's has following cost data:

Systems development

$28,000

Final product testing and inspection

$1 1,000

Quality data gathering, analysis, and reporting

$ 8,000

Net cost of scrap

$57,000

Returns arising from quality problems

$55,000

Amortization of test equipment

$532000

Rework labour and overhead

$15,000

Test and inspection of incoming materials

$37,000

Product recalls

$32,000

Required:

1) how much is the prevention cost?

2) calculate Total appraisal cost?

3) identify the total internal failure?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

7th Edition

0078136725, 9780078136726

More Books

Students also viewed these Accounting questions