Question
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
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?
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