Wk 4 assignment (4 exercises; full details attached)
LifeBalanceNoreen, E., Brewer, P., & Garrison, R. (2016). Managerial accounting for managers. (4th ed.). McGraw-Hill ISBN: 9781308886718
EXERCISE 5–2 Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO 5–2]
Refer to the data in Exercise 5–1 for Ida Sidha Karya Company. The absorption costing income statement prepared by the company’s accountant for last year appears below:
Required:
- Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
- Prepare an income statement for the year using variable costing. Explain the difference in net operating income between the two costing methods.
EXERCISE 5–3 Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO 5–3]
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data:
The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.
Required:
- Determine each year’s absorption costing net operating income. Present your answer in the form of a reconciliation report.
- In Year 4, the company’s variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012,400. Did inventories increase or decrease during Year 4? How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?
EXERCISE 5–4 Basic Segmented Income Statement [LO 5–4]
Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow:
Common fixed expenses in the company total $33,000 annually. Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow.
Required:
Prepare a contribution format income statement segmented by product lines.
EXERCISE 5–6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO 5–1, LO 5–2]
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations:
During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company’s product is $50 per unit.
Required:
- Assume that the company uses absorption costing:
- a. Compute the unit product cost.
- b. Prepare an income statement for the year.
- Assume that the company uses variable costing:
- a. Compute the unit product cost.
- b. Prepare an income statement for the year
- 5 years ago
- 12
Purchase the answer to view it
- week4assignment.doc
- The Social Significance of Architecture
- 1
- Julie has a mass 49kg What is her potential energy when standy on the 6m diving board? what is her...
- BUS 610 Week 1: Organizational Culture Analysis
- I need help with theater class . this the details about assignment More than sets and lights, costume design not only...
- Concrete Blocks wk 3 L1
- online help two different answers
- HSA 510 ASSIGNMENT 2
- Assignment 1: Discussion—Training Design Issues
- I Need one with very good concept in business