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= Homework: Chapter 9 Problems Question 6, P9-40 (simil... Part 1 of 12 HW Score: 5.43%, 1.09 of 20 points X Points: 0 of 4 Save CJLL Company manufactures a specialized hoverboard. CJLL began 2017 with an inventory of 300 hoverboards. During the year, it produced 400 boards and sold 480 for $750 each. Fixed production costs were $92,800, and variable production costs were $220 per unit. Fixed advertising, marketing, and other general and administrative expenses were $118,000, and variable shipping costs were $12 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost. Read the requirements Requirement 1. Prepare an income statement assuming CJLL uses variable costing. Complete the top half of the income statement first, then complete the bottom portion. X Requirements Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable shipping costs Contribution margin III 1. Prepare an income statement assuming CJLL uses variable costing. 2. Prepare an income statement assuming CJLL uses absorption costing. CJLL uses a denominator level of 290 units. Production-volume variances are written off to cost of goods sold. 3. Compute the breakeven point units sold assuming CJLL uses the following: a. Variable costing b. Absorption costing (Production = 400 boards) 4. Provide proof of your preceding breakeven calculations. 5. Assume that $30,000 of fixed administrative costs were reclassified as fixed production costs. Would this reclassification affect breakeven point using variable costing? What if absorption costing were used? Explain. 6. The company that supplies CJLL with its specialized impact-resistant material has announced a price increase of $16 for each board. What effect would this have on the breakeven points previously calculated? Print Done = Homework: Chapter 9 Problems Question 6, P9-40 (simil... Part 1 of 12 HW Score: 5.43%, 1.09 of 20 points X Points: 0 of 4 Save CJLL Company manufactures a specialized hoverboard. CJLL began 2017 with an inventory of 300 hoverboards. During the year, it produced 400 boards and sold 480 for $750 each. Fixed production costs were $92,800, and variable production costs were $220 per unit. Fixed advertising, marketing, and other general and administrative expenses were $118,000, and variable shipping costs were $12 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost. Read the requirements Requirement 1. Prepare an income statement assuming CJLL uses variable costing. Complete the top half of the income statement first, then complete the bottom portion. X Requirements Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable shipping costs Contribution margin III 1. Prepare an income statement assuming CJLL uses variable costing. 2. Prepare an income statement assuming CJLL uses absorption costing. CJLL uses a denominator level of 290 units. Production-volume variances are written off to cost of goods sold. 3. Compute the breakeven point units sold assuming CJLL uses the following: a. Variable costing b. Absorption costing (Production = 400 boards) 4. Provide proof of your preceding breakeven calculations. 5. Assume that $30,000 of fixed administrative costs were reclassified as fixed production costs. Would this reclassification affect breakeven point using variable costing? What if absorption costing were used? Explain. 6. The company that supplies CJLL with its specialized impact-resistant material has announced a price increase of $16 for each board. What effect would this have on the breakeven points previously calculated? Print Done
