Johnson Lug (JL) began making wheelbarrows in early 2018. The company uses standard costing and values their finished goods inventory using FIFO. The results of the company's operations for 2018 and 2019 are presented below: Production in units Sales in units Sales price per unit 2018 4,500 3,800 $24 2019 4,200 3,800 $25 JL has no beginning inventory for 2018. Actual Production Costs: Direct materials Direct labour Variable overhead Fixed overhead $12.00 per unit $4.00 per unit $2.00 per unit $8,100 Actual Selling & Marketing Costs: Variable Marketing Fixed Marketing 5% of sales $5.200 The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 4,500 units The costs have not changed from year to year Question 1 (20 points) Based on the general data, answer the following questions based on 2019 only: Create an absorption costing income statement based on standard cost for 2019 and answer the following questions based on 2019 only: What is the value of the beginning inventory? AJ What is the variable production costs allocated? What is the fixed production costs allocated? What is the ending inventory costs in 2019? A How much is the Production Volume Variance? Determine the COGS for 2019. A Determine the gross margin for 2019. A What is the operating expense for 2019? What is the absorption costing operating income for 2019? A: How much is the reconciliation amount between the variable and absorption costing operating income? A Please Note: Make sure your response is saved as you complete each question as the loft not to unction number Johnson Lug (JL) began making wheelbarrows in early 2018. The company uses standard costing and values their finished goods inventory using FIFO. The results of the company's operations for 2018 and 2019 are presented below: Production in units Sales in units Sales price per unit 2018 4,500 3,800 $24 2019 4,200 3,800 $25 JL has no beginning inventory for 2018. Actual Production Costs: Direct materials Direct labour Variable overhead Fixed overhead $12.00 per unit $4.00 per unit $2.00 per unit $8,100 Actual Selling & Marketing Costs: Variable Marketing Fixed Marketing 5% of sales $5.200 The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 4,500 units The costs have not changed from year to year Question 1 (20 points) Based on the general data, answer the following questions based on 2019 only: Create an absorption costing income statement based on standard cost for 2019 and answer the following questions based on 2019 only: What is the value of the beginning inventory? AJ What is the variable production costs allocated? What is the fixed production costs allocated? What is the ending inventory costs in 2019? A How much is the Production Volume Variance? Determine the COGS for 2019. A Determine the gross margin for 2019. A What is the operating expense for 2019? What is the absorption costing operating income for 2019? A: How much is the reconciliation amount between the variable and absorption costing operating income? A Please Note: Make sure your response is saved as you complete each question as the loft not to unction number
