147. The actual price for a product was $50 per unit, while the planned price was $44 per unit. The volume increased by 4,000 to 60,000 total units. Determine the (a) quantity factor and the (b) price factor for sales.
148. On January 1 of the current year, C. F. Hartley Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:
Units
Production:
50,000
Sales ($18 per unit)
42,000
Inventory, January 31
8,000
=====
Total Cost or Expense:
Manufacturing costs:
Variable
$575,000
Fixed
75,000
Total
$650,000
=======
Selling and administrative expenses:
Variable
$ 33,600
Fixed
10,500
Total
$ 44,100
=======
(a)
Prepare an income statement in accordance with absorption costing.
(b)
Prepare an income statement in accordance with variable costing.
149. On October 31, the end of the first month of operations, Carswell & Co. prepared the following income statement based on absorption costing:
Carswell & Co.Income StatementFor Month Ended October 31, 20-
Sales (2,600 units)
$104,000
Cost of goods sold:
Cost of goods manufactured
$85,500
Less ending inventory (400 units)
11,400
Cost of goods sold
74,100
Gross profit
$ 29,900
Selling and administrative expenses
21,500
Income from operations
$ 8,400
========
If the fixed manufacturing costs were $42,000 and the variable selling and administrative expenses were $15,600, prepare an income statement in accordance with the variable costing concept.
150. Presented below are the major categories or captions that would appear on an income statement prepared in the variable costing format:Contribution marginFixed costsIncome from operationsManufacturing marginSalesVariable cost of goods soldVariable selling and administrative expenses
(a)
Arrange the above captions in the proper order in accordance with the variable costing concept.
(b)
Which of the captions represents (1) the difference between sales and the total of all the variable costs and expenses and (2) the remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income?
151. On August 31, the end of the first year of operations, during which 18,000 units were manufactured and 13,500 units were sold, Finberg Inc. prepared the following income statement based on the variable costing concept:
Finberg Inc.Income StatementFor Year Ended August 31, 20–
Sales
$297,000
Variable cost of goods sold:
Variable cost of goods manufactured
$279,000
Less ending inventory
67,500
Variable cost of goods sold
211,500
Manufacturing margin
$ 85,500
Variable selling and administrative
expenses
40,500
Contribution margin
$ 45,000
Fixed costs:
Fixed manufacturing costs
$ 12,000
Fixed selling and administrative
expenses
10,800
22,800
Income from operations
$ 22,200
========
Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
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