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Xenoc, Inc. produces stereo speakers. The selling price per pair of speakers is $1,800 Costs involved in production are: Direct materials $150 Direct labor 200
Xenoc, Inc. produces stereo speakers. The selling price per pair of speakers is | $1,800 | Costs | ||||||
involved in production are: | ||||||||
Direct materials | $150 | |||||||
Direct labor | 200 | |||||||
Variable manufacturing overhead | 100 | |||||||
Total variable manufacturing costs per unit | $450 | |||||||
Fixed manufacturing overhead per year | $540,000 | |||||||
In addition, the company has fixed selling and administrative costs: | ||||||||
Fixed selling costs per year | $210,000 | |||||||
Fixed administrative costs per year | $110,000 | |||||||
Exercise E5-4 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
1,000 | pairs. What is the value of ending inventory using full costing? | |||||||
Variable cost per unit | Amount | |||||||
Fixed manufacturing overhead per unit | Amount | |||||||
Title | Formula | |||||||
Ending inventory under full costing: | Formula | |||||||
Exercise E5-5 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
1,000 | pairs. What is the value of ending inventory using variable costing? | |||||||
Ending inventory under variable costing: | Formula | |||||||
Exercise E5-6 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
1,000 | pairs. What is the cost of goods sold using full costing? | |||||||
Title | Amount | |||||||
Title | Formula | |||||||
Exercise E5-7 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
1,000 | pairs. What is variable cost of goods sold? | |||||||
Title | Amount | |||||||
Title | Formula | |||||||
Text answer as appropriate | ||||||||
Exercise E5-8 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
1,000 | pairs. What is net income using full costing? | |||||||
Sales | Amount | |||||||
Less Title | Amount | |||||||
Gross margin | Formula | |||||||
Less Title | Amount | |||||||
Less Title | Amount | |||||||
Net income | Formula | |||||||
Exercise E5-9 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
1,000 | pairs. What is net income using variable costing? | |||||||
Sales | Amount | |||||||
Less Title | Amount | |||||||
Contribution margin | Formula | |||||||
Less Title | Amount | |||||||
Less Title | Amount | |||||||
Less Title | Amount | |||||||
Net income | Formula | |||||||
Exercise E5-10 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
1,000 | pairs. How much fixed manufacturing overhead is in ending inventory under full costing? Compare | |||||||
this amount to the difference in the net incomes calculated in Exercises E5-8 and E5-9. | ||||||||
Narrative answer: | ||||||||
Enter text answer here. | ||||||||
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