Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 16E
Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for $52 each. The actual unit cost is as follows:
The selling expenses consisted of a commission of $1.30 per unit sold and advertising copayments totaling $95,000. Administrative expenses, all fixed, equaled $183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $132,600 for 3,400 easels.
Required:
- 1. Calculate the number and the dollar value of easels in ending finished goods inventory.
- 2. Prepare a cost of goods sold statement.
- 3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
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Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easelswere made, and 31,000 were sold for $52 each. The actual unit cost is as follows:
Direct materials $14.70Direct labor 5.80Variable overhead 3.25Fixed overhead 15.25Total unit cost $39.00
The selling expenses consisted of a commission of $1.30 per unit sold and advertising co-payments totaling $95,000. Administrative expenses, all fixed, equaled $183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was$132,600 for 3,400 easels.Required:1. Calculate the number and the dollar value of easels in ending finished goods inventory.2. Prepare a cost of goods sold statement.3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During this time, the company produced 60,000 units and sold 40,000 units at a sales price of $600 per unit. Cost information for this year is shown in the following table:
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$
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Non-production costs
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Given the Galaxy, Inc. data, what is net income using absorption costing?
Chapter 2 Solutions
Cornerstones of Cost Management (Cornerstones Series)
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