Question : 51) Bressler Company sells its products for $33 each. The : 1217275

 

51) Bressler Company sells its products for $33 each. The current production level is 50,000 units, although only 40,000 units are anticipated to be sold.

 

Unit manufacturing costs are:

Direct materials              $6.00

Direct manufacturing labor              $9.00

Variable manufacturing costs              $4.50

Total fixed manufacturing costs$180,000

Marketing expenses              $3.00 per unit, plus $60,000 per year

 

Required:

a.Prepare an income statement using absorption costing.

b.Prepare an income statement using variable costing.

 

52) Ireland Corporation planned to be in operation for three years.

 

?During the first year, 20×1, it had no sales but incurred $240,000 in variable manufacturing expenses and $80,000 in fixed manufacturing expenses.

?In 20×2, it sold half of the finished goods inventory from 20×1 for $200,000 but it had no manufacturing costs.

?In 20×3, it sold the remainder of the inventory for $240,000, had no manufacturing expenses and went out of business.

?Marketing and administrative expenses were fixed and totaled $40,000 each year.

 

 Required:

a.Prepare an income statement for each year using absorption costing.

b.Prepare an income statement for each year using variable costing.

 

53) Jarvis Golf Company sells a special putter for $20 each. In March, it sold 28,000 putters while manufacturing 30,000. There was no beginning inventory on March 1. Production information for March was:

 

Direct manufacturing labor per unit15 minutes

Fixed selling and administrative costs$ 40,000

Fixed manufacturing overhead132,000

Direct materials cost per unit2

Direct manufacturing labor per hour24

Variable manufacturing overhead per unit4

Variable selling expenses per unit2

 

Required:

a.Compute the cost per unit under both absorption and variable costing.

b.Compute the ending inventories under both absorption and variable costing.

c.Compute operating income under both absorption and variable costing.

 

54) Johnson Realty bought a 2,000-acre island for $10,000,000 and divided it into 200 equal size lots.

As the lots are sold, they are cleared at an average cost of $5,000.

Storm drains and driveways are installed at an average cost of $8,000 per site.

Sales commissions are 10% of selling price.

Administrative costs are $850,000 per year.

The average selling price was $160,000 per lot during 20X5 when 50 lots were sold.

 

During 20X6, the company bought another 2,000-acre island and developed it exactly the same way. Lot sales in 20X6 totaled 300 with an average selling price of $160,000. All costs were the same as in 20X5.

 

Required:

Prepare income statements for both years using both absorption and variable costing methods.

55) Moore Company prepared the following absorption-costing income statement for the year ended May 31, 2011.

 

Sales (8,000 units)$160,000

Cost of goods sold108,000

Gross margin$52,000

Selling and administrative expenses23,000

Operating income$ 29,000

 

Additional information follows:

 

Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs.

 

Required:

Prepare a variable-costing income statement for the same period.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more