### Opt For Our Absorption and Variable Costing Assignment Help Service! Produce 100% Plagiarism-Free Academic Papers

Home   Course
Previous << || >> Next

ENROL WITH ABSORPTION AND VARIABLE COSTING ASSIGNMENT HELP AND HOMEWORK WRITING SERVICES OF EXPERTSMINDS.COM AND GET BETTER RESULTS IN ABSORPTION AND VARIABLE COSTING ASSIGNMENTS!

Absorption and Variable Costing Assignment

Question 1 What is the basic difference between absorption costing and variable costing?

Solution 1: The basic difference between absorption and variable costing is the inventory valuation. Under absorption costing, all product costs irrespective of fixed or variable are considered for inventory valuation whereas under variable costing, only variable product costs are considered for inventory valuation.

24/7 AVAILABILITY OF TRUSTED ABSORPTION AND VARIABLE COSTING ASSIGNMENT WRITERS! ORDER ASSIGNMENTS FOR BETTER RESULTS!

Question 2 Refined Elegance Corp. makes a desk specially designed for personal computers. The desk sells for \$200.

Solution 2:

 Units in beginning inventory 0 Units produced 10,000 Units sold 9,000 Units in ending inventory 1,000 Variable costs per unit Direct materials \$40 Direct labour 35 Variable manufacturing overhead 10 Variable selling and administrative 25 Total variable cost per unit \$110 Fixed costs Fixed manufacturing overhead \$300,000 Fixed selling and administrative 450,000 Total fixed costs \$750,000

i. Compute the unit product cost for one computer desk.

 Unit product cost for one computer desk Formula= (DM+DL+Variable manufacturing Overheads) Direct materials \$40 Direct labour 35 Variable manufacturing overhead 10 Unit product cost for one computer desk \$85

ii. Prepare a contribution format income statement for the year.

 Contribution format Income statement Total Sales 1800000 Less: Variable cost Beginning Inventory 0 Manufacturing cost 850000 Cost of Goods Available for Sale 850000 Less: Ending inventory 85000 Cost of Goods Sold 765000 Gross Margin 1035000 Less: variable selling & admin expenses 225000 Contribution margin 810000 Fixed manufacturing expense 300000 Fixed selling & admin expenses 450000 Total fixed cost 750000 Net Income 60000

iii. What is the company's break-even point in terms of units sold?

 Break-even point in terms of units sold Formula= Fixed costs/ per unit contribution Total fixed costs \$750,000 Contribution per unit \$90 Break-even point in terms of units sold 8333.333333

GET ASSURED A++ GRADE IN EACH ABSORPTION AND VARIABLE COSTING ASSIGNMENT ORDER - ORDER FOR ORIGINALLY WRITTEN SOLUTIONS!

Question 3 Refer to the data in the previous question for Refined Elegance Corp. Assume in this exercise that the company uses absorption costing.

Solution:

i. Compute the unit product cost for one computer desk.

 Unit product cost for one computer desk Formula= (DM+DL+Variable manufacturing Overheads+ Fixed manufacturingoverhead(absorbed)) Direct materials \$40 Direct labour \$35 Variable manufacturing overhead \$10 Fixed Manufacturing overheads (Absorbed) \$30 Unit product cost for one computer desk \$115

ii. Prepare an income statement for the year.

 Contribution format Income statement Total Sales 1800000 Less: Variable cost Beginning Inventory 0 Manufacturing cost 1150000 Cost of Goods Available for Sale 1150000 Less: Ending inventory 115000 Cost of Goods Sold 1035000 Gross Margin 765000 Less: variable selling & admin expenses 225000 Fixed selling & admin expenses 450000 Total selling and administration cost 675000 Net Income 90000

Question 4 What was the total standard cost of the ending inventory under absorption costing?

Solution:

 Selling price per unit \$41 Standard fixed manufacturing costs per unit \$20 Variable selling and administrative costs per unit \$4 Fixed selling and administrative cost per unit \$16,000 Beginning inventories: Units ? Standard fixed manufacturing cost \$40,000 Standard variable manufacturing cost \$20,000 Units produced 10,000 Units sold 9,600

 Total standard cost of the ending inventory under absorption costing Ending inventory 400 Standard variable manufacturing cost (20000/10000*400) \$800 Standard fixed manufacturing cost \$8,000 Total standard cost of the ending inventory \$8,800

NO PLAGIARISM POLICY - ORDER NEW ABSORPTION AND VARIABLE COSTING ASSIGNMENT & GET WELL WRITTEN SOLUTIONS DOCUMENTS WITH FREE TURNTIN REPORT!

Question 5 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Solution:

 Selling price \$111 Units in beginning inventory 400 Units produced 8,800 Units sold 8,900 Variable costs per unit Direct materials \$34 Direct labour \$37 Variable manufacturing overhead \$3 Variable selling and administrative \$9 Fixed costs Fixed manufacturing overhead \$61,600 Fixed selling and administrative \$169,100

i. Compute the total Contribution Margin.

 Compute the total Contribution Margin Total Sales \$987,900 Less: Variable cost Beginning Inventory 29600 Manufacturing cost 651200 Cost of Goods Available for Sale 680800 Less: Ending inventory (400+8800-8900)= 300 22200 variable Cost of Goods Sold 658600 Less: variable selling & admin expenses \$80,100 Total variable cost \$738,700 Contribution margin \$249,200

400* Total variable cost = (34+37+3) 74

ii. Compute the Operating Income under Variable Costing.

 Total Sales \$987,900 Less: Variable cost Beginning Inventory \$29,600 Manufacturing cost \$651,200 Cost of Goods Available for Sale \$680,800 Less: Ending inventory (400+8800-8900)= 300 \$22,200 variable Cost of Goods Sold \$658,600 Less: variable selling & admin expenses \$80,100 Total variable cost \$738,700 Contribution margin \$249,200 Fixed manufacturing expense \$61,600 Fixed selling & admin expenses \$169,100 Total fixed cost \$230,700 Net Income \$18,500

400* Total variable cost = (34+37+3) 74

iii. Prepare a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.

 Total Sales \$987,900 Less: Variable cost Beginning Inventory  (assuming absorption rate to be same as current year) \$32,400 Manufacturing cost \$712,800 Cost of Goods Available for Sale \$745,200 Less: Ending inventory (400+8800-8900)= 300 \$24,300 Cost of Goods Sold \$720,900 Gross margin \$267,000 Less: Variable selling & admin expenses \$80,100 Fixed selling & admin expenses \$169,100 Total selling & admin expenses \$249,200 Net Income \$17,800 Reconcillation Net Income under variable costing \$18,500 Add: fixed manufacturing overhead costs deferred in inventory under absorption costing 2100 Less: fixed manufacturing overhead costs released from inventory under absorption costing 2800 Net income under absorption costing \$17,800

400* Total variable cost = (34+37+3+7) 81

ENDLESS SUPPORT IN ABSORPTION AND VARIABLE COSTING ASSIGNMENTS WRITING SERVICES - YOU GET REVISED OR MODIFIED WORK TILL YOU ARE SATISFIED WITH OUR ABSORPTION AND VARIABLE COSTING ASSIGNMENT HELP SERVICES!

Tag This :- Absorption and Variable Costing Assignment Help, TG66FAR211MAN

### Assignment Samples

 Organization Theories And Organization Fit organization theories and organization fit- The assignment illustrates that by utilising a comprehensive institutional model, any organization can use The Compliance Issues Assignment Help the compliance issues assignment help - The paper is the related to the compliance issues and the related factors. Encrypting Email Messages for Allnet Solutions Assignment Help encrypting email messages for allnet solutions assignment help-Create a report that lists different types of email cryptography security otions. Cyber Security Assignment Help cyber security assignment help - The following assignment talks about the cybersecurity of supply chains and discusses the various risks associated with it. Health Literacy in Health Promotion Assignment Help health literacy in health promotion assignment help - Find a database with scholarly evidence about your chosen topic, evaluate the evidence for how it applies The Evolution of Western Culture Assignment Help the evolution of western culture assignment help - The following assignment addresses the evolution of Western culture and elaborates on the changes related to Business Decision Making Assignment Help business decision making assignment help - Holmes Institute, Australia. Construct a frequency distribution and a relative frequency distribution for the data

Get Academic Excellence with Best Skilled Tutor! Order Assignment Now!