Question :
172.Blatt Company, a manufacturer of slippers, began operations June 1 : 1258594
172.Blatt Company, a manufacturer of slippers, began operations on June 1 of the current year. During this time, the company produced 210,000 units and sold 185,000 units at a sales price of $40 per unit. Cost information for this period is shown in the following table:
Production costs
Direct materials$5.00 per unit
Direct labor$4.75 per unit
Variable overhead$302,000 in total
Fixed overhead$405,000 in total
Non-production costs
Variable selling and administrative$9,000 in total
Fixed selling and administrative$25,000 in total
a. Prepare Blatt’s December 31 income statement for the current year under absorption costing. b. Prepare Blatt’s December 31 income statement for the current year under variable costing.
a.
173.Wrap-It Company, a manufacturer of wrapping paper, began operations on June 1 of the current year. During this time, the company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit. Cost information for this period is shown in the following table:
Production costs
Direct materials$2.00 per unit
Direct labor$.80 per unit
Variable overhead$814,000 in total
Fixed overhead$481,000 in total
Non production costs
Variable selling and administrative$78,000 in total
Fixed selling and administrative$210,000 in total
a. Prepare Wrap-It’s December 31th income statement for the current year under absorption costing. b. Prepare Wrap-It’s December 31th income statement for the current year under variable costing.
a.
174.32 Degrees, Inc., a manufacturer of frozen food, began operations on July 1 of the current year. During this time, the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit. Cost information for this period is shown in the following table:
Production costs
Direct materials$13.00 per unit
Direct labor$6.00 per unit
Variable overhead$2,100,000 in total
Fixed overhead$3,220,000 in total
Non production costs
Variable selling and administrative$91,000 in total
Fixed selling and administrative$458,000 in total
a. Prepare 32 Degree’s December 31 income statement for the current year under absorption costing. b. Prepare 32 Degree’s December 31 income statement for the current year under variable costing.
a.
175.State Industries has the following information for 2015:
Units produced and sold3,000 units
Selling Price$260/unit
Direct materials$20/unit
Direct labor$40/unit
Fixed manufacturing overhead$120,000/yr
Fixed selling and administrative costs$160,000/yr
Variable manufacturing overhead$35/unit
Variable selling and administrative costs$25/unit
There are no beginning inventories. Prepare an income statement for the year under absorption costing. 176.Maloney Co. provided the following information for the year 2015:
Units produced and sold4,400 units
Selling Price$400/unit
Direct materials$85/unit
Direct labor$55/unit
Fixed manufacturing overhead$130,000/yr
Fixed selling and administrative costs$165,000/yr
Variable manufacturing overhead$40/unit
There are no beginning inventories. Prepare an income statement using the variable costing format. 177.Materials Corporation sold 12,000 units of its product at a price of $67 per unit. Total variable cost per unit is $54.94, consisting of $45.05 in variable production cost and $9.89 in variable selling and administrative cost. Compute the contribution margin for the company.
178.Countdown Inc. sold 17,000 units of its product at a price of $81 per unit. Total variable cost per unit is $72.09, consisting of $69.05 in variable production cost and $3.04 in variable selling and administrative cost. Compute the contribution margin for the company.
