Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Answer is complete and correct. Unit product cost 28 16 During the year, the company produced 32,650 units and sold 27,100 units. The selling price of the company's product is $89 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. 66 7 8 489,750 216,800 b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Sales Cost of goods sold: Answer is complete but not entirely correct. Absorption Costing Income Statement O Beginning inventory Add: Cost of goods manufactured Goods available for sale Less: Ending inventory. Gross margin Selling and administrative expenses Operating income s 623,300 → 433,600 1,056,900 189,700 ****000 ✔ ✔ → $2,411,900 867,200 1,544,700 180,700 $1,355,000 2. Assume that the company uses variable costing. a. Compute the unit product cost. Answer is complete and correct. $ 51 Unit product cost b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Answer is complete but not entirely correct. Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold: Variable selling expense Add: Variable manufacturing costs Goods available for sale Add: Ending inventory Variable cost of goods sold Fixed manufacturing overhead Contribution margin Fixed expenses: Fixed selling and administrative Fixed manufacturing overhead Operating income ♥ Ⓡ x $1,382,100 216,800 1,598,900 1,598,900 0 813,000 489,750 216,800 $ 2,411,900 ( 813,000 1,598,900 706,550 892,350 Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Answer is complete and correct. Unit product cost 28 16 During the year, the company produced 32,650 units and sold 27,100 units. The selling price of the company's product is $89 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. 66 7 8 489,750 216,800 b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Sales Cost of goods sold: Answer is complete but not entirely correct. Absorption Costing Income Statement O Beginning inventory Add: Cost of goods manufactured Goods available for sale Less: Ending inventory. Gross margin Selling and administrative expenses Operating income s 623,300 → 433,600 1,056,900 189,700 ****000 ✔ ✔ → $2,411,900 867,200 1,544,700 180,700 $1,355,000 2. Assume that the company uses variable costing. a. Compute the unit product cost. Answer is complete and correct. $ 51 Unit product cost b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Answer is complete but not entirely correct. Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold: Variable selling expense Add: Variable manufacturing costs Goods available for sale Add: Ending inventory Variable cost of goods sold Fixed manufacturing overhead Contribution margin Fixed expenses: Fixed selling and administrative Fixed manufacturing overhead Operating income ♥ Ⓡ x $1,382,100 216,800 1,598,900 1,598,900 0 813,000 489,750 216,800 $ 2,411,900 ( 813,000 1,598,900 706,550 892,350
Expert Answer:
Answer rating: 100% (QA)
Baxtell Company 1a Unit Product cost under absorption costing 6600 1b Net Operating income under abs... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The vice president of marketing for a regional doughnut retailer say's "We believe our customers exhibit high-involvement buying behavior." Do you agree? Why or why not?
-
The vice president of strategy for your selected firm (Ford, Procter & Gamble, Virgin Group, or Build-Your-Own firm) has asked you to prepare an objective review of the internal strengths and...
-
The new vice president of marketing for your company has asked to meet with you regarding the purpose of payroll entries in accounting reports. What will you tell the vice president?
-
Compare sand, die, investment, lost foam, and continuous casting techniques.
-
Consult Paragraphs 56 of PCAOB Auditing Standard No. 15. As an auditor, what type of evidence would you want to examine to determine whether Waste Managements decision to change the useful life and...
-
When the volume of closing inventory is lower than the volume of opening inventory, which will show the greater profit, absorption costing or marginal costing?
-
Don Griffin worked as an accountant at a local accounting firm for five years after graduating from college. Recently, he opened his own accounting practice, which he operates as a corporation. The...
-
On June 1, 2011, MacDougall Corporation approached Silverman Corporation about purchasing a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was...
-
Describe and discuss the Jewish American sport experience(s). Identify and elaborate the impact, if any, which occurred from these experiences. What leadership has transpired in sport from this...
-
Defend the significance of LG considering the opinions of an executive jury when formulating the business's inventory management policy.
-
A project is going to cost $2.5 million for an initial investment in a machine. The machine will depreciate straight line to zero within the five-year project life with no salvage value. It is...
-
83 cities were surveyed to determine sports teams. 24 had baseball, 20 had football, 17 had basketball, 10 had baseball and football, 9 had baseball and basketball, 10 had football and basketball. 3...
-
A sealed treasure chest with a volume of 7 4 L and a mass of 1 4 9 kilograms is lying 1 7 meters below the ocean surface. What is the bouyant force on the chest ( in N ) ? The density of seawater is...
-
3. If the input is a sorted array with n elements in ascending order, what is the big O notation of Merge Sort? Why? (20 points) MERGE-SORT(A. p.r) 1 if p
-
9 . A rock is thrown straight down off a cliff with a velocity of 1 4 . 3 m / s . If it takes 8 . 4 s to reach theground, how far down did it travel?
-
What average force is needed to accelerate a 8.20-gram pellet from rest to 130 m/s over Express your answer with the appropriate units.
-
Suppose we have a collection of 20 documents, d, d2,..., d20, which have been judged for relevance to a query. A 3-point relevance scale was used, so relevant documents have been divided into...
-
Whats the difference between an ordinary annuity and an annuity due? What type of annuity is shown below? How would you change the time line to show the other type of annuity?
-
Explain which segmentation variable would be most important to marketers of the following products vitamins credit cards coffee.
-
How can company segment international markets for its products? How might Apple segment the international market for its iPod?
-
1. What is the appeal of the VHost for a marketer? 2. What might be a concern for the marketer? 3. After visiting the site, as a consumer, what are your thoughts regarding the VHosts? 4. What...
-
Mail Plus performs mailing services on account, so virtually all cash receipts arrive in the mail. Gina Star, the owner, has just returned from a meeting with new ideas for the business. Among other...
-
Showbiz Sportswear completed the following selected transactions during 2008 and 2009: Requirements 1. Open general ledger accounts for Allowance for Uncollectible Accounts and Uncollectible-Account...
-
On February 28, Tradewinds Sailing Supplies had a \(\$ 75,000\) debit balance in Accounts Receivable and a \(\$ 2,200\) credit balance in Allowance for Uncollectible Accounts. During March,...
Study smarter with the SolutionInn App