Question :
165.Castaway Company reports the following first year production cost information:
Units : 1258593
165.Castaway Company reports the following first year production cost information:
Units produced53,000 units
Units sold51,000 units
Direct labor$8 per unit
Direct materials$4 per unit
Variable overhead$2,173,000 in total
Fixed overhead$3,339,000 in total
a. Compute production cost per unit under variable costing. b. Compute production cost per unit under absorption costing. c. Determine the cost of ending inventory using variable costing. d. Determine the cost of ending inventory using absorption costing. 166.Castaway Company reports the following first year production cost information:
Units produced53,000 units
Units sold51,000 units
Sales price$150 per unit
Direct labor$8 per unit
Direct materials$4 per unit
Variable overhead$2,173,000 in total
Fixed overhead$3,339,000 in total
Operating expenses$1,000,000 in total
a. Determine the net income using variable costing. b. Determine the net income using absorption costing.
167.A company reports the following information regarding its production cost:
Units produced14,000 units
Direct labor$13 per unit
Direct materials$3 per unit
Variable overhead? in total
Fixed overhead$56,000 in total
Required: Perform the following independent calculations. a. Compute total variable overhead cost if the production cost per unit under variable costing is $73. b. Compute total variable overhead cost if the production cost per unit under absorption costing is $73.
168.A company reports the following information regarding its production cost:
Units produced22,000 units
Direct labor$31 per unit
Direct materials$27 per unit
Variable overhead? in total
Fixed overhead$2,750,000 in total
Required: Perform the following independent calculations. a. Compute total variable overhead cost if the production cost per unit under variable costing is $240. b. Compute total variable overhead cost if the production cost per unit under absorption costing is $240.
169.Digby Company manufactured and sold 37,000 units of its product at a price of $93 per unit. Total variable cost per unit is $60, consisting of $58 in variable production cost and $2 in variable selling and administrative cost. Fixed costs of manufacturing are $350,000. a. Compute the manufacturing margin for the company under variable costing. b. Compute the contribution margin based on this data. c. Compute the gross margin under absorption costing.
170.Cavalier Corporation sold 26,000 units of its product at a price of $225 per unit. Total variable cost per unit is $188, consisting of $103 in variable production cost and $85 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.
171.Stonehenge Inc., a manufacturer of landscaping blocks, began operations on April 1 of the current year. During this time, the company produced 750,000 units and sold 720,000 units at a sales price of $9 per unit. Cost information for this period is shown in the following table:
Production costs
Direct materials$1.80 per unit
Direct labor$.30 per unit
Variable overhead$495,000 in total
Fixed overhead$450,000 in total
Non production costs
Variable selling and administrative$18,000 in total
Fixed selling and administrative$53,000 in total
a. Prepare Stonehenge’s December 31 income statement for the current year under absorption costing. b. Prepare Stonehenge’s December 31 income statement for the current year under variable costing.
a.
