Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help plz with accounting for these 5 questions Estimated Income Statements, using Absorption and Varrable Costing Prior to the first month of operations ending
need help plz with accounting for these 5 questions
Estimated Income Statements, using Absorption and Varrable Costing Prior to the first month of operations ending October 31, Marshal Inc. estimated the following operating results: The company is evaluating a proposal to manufacture 28,000 units instead of 24,800 units, thus creating an ending imventory of 3,200 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total foced factory. overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, combaring operating results if 24,800 ane 28,000 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank. a. 2. Prepare an estimated income statement, comparing operating results if 24,800 and 28,000 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank. Varlable and Absorpticn Costing - Three Products Winsiow tnc. manufactures and selis three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc. Product Income Statements-Absorption Costing For the Year Ended December 31. 20Y1 In addition, you have determined the following information with respect to allocated foxed costs: These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determined that the effocts of inventory may be ipnored. The management of the company has detmed the profit performance of the runhing shoe line as unacceptable. As a result, it has declded to eliminate the running shoe line. Management does not expect to be able to increase sales in the other two lines. However, as a resut of eliminating the running shoe line, management expects the profits of the company to increase by $35,300. a. Are management's dedision and conclusions correct? because the fixed costs used in manufacturing and seding running shoes =1 be aveided if the line is eliminated. b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign. Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University for the Fall term were as follows: Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 5,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Income Statements under Absorytion Costing and Variable Costing Fresne Industries Inc. manufactures and selis high-quality camping tents. The company began operations on January 1 and operaced at 100% of capacity (61,600 units) ouring the first month, creating an ending inventory of 5,600 units. During Frbnarm, the company produced 56,000 units during the month but sold 61,600 units at $125 per unit. The febraary manufacturing costs and seling and administrative expenses were as follows: a. Prepare an income statement according to the absorption couting concept for the month ending February 28. b. Prepare an income statement according to the variable costing concept for the month ending February 28 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started