Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Carolina Corporation, which uses throughput costing, began operations at the start of the current year. Planned and actual production was 20,000 units, and sales

image text in transcribed

6. Carolina Corporation, which uses throughput costing, began operations at the start of the current year. Planned and actual production was 20,000 units, and sales totalled 17,500 units at $95 per unit. Cost data for the year were as follows: Direct materials (per unit) Conversion cost: Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable Selling and administrative costs Fixed Selling and administrative costs $18 $ 160,000 280,000 340,000 230,000 200,000 Required: (a) Compute the cost of the ending inventory under absorption costing. (4 marks) (b) Compute the Contribution Margin under variable costing. (5 marks) (c) Compute the Throughput Margin and the Net Profit under throughput costing. (6 marks)

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

Effective Writing A For Accountants

Authors: Claire B. May, Gordon S. May

11th Edition

0134667387, 9780134667386

More Books

Students also viewed these Accounting questions

Question

10. What is meant by a feed rate?

Answered: 1 week ago