Professional Documents
Culture Documents
Chapter 8
Chapter 8
REVIEW 8-12
(a)
(b)
$30.00
12.00
3.00
9.00
$54.00
$1,100,000
$648,000
648,000
108,000
540,000
560,000
240,000
$320,000
(a)(2)
$30.00
12.00
3.00
$45.00
$1,100,000
$450,000
40,000
108,000
200,000
490,000
610,000
308,000
$302,000
$302,000
18,000
$320,000
(a)(2)
$30.00
12.00
3.00
8.00
$53.00
$1,100,000
$636,000
636,000
106,000
530,000
12,000
542,000
558,000
240,000
$318,000
$318,000
2,000
$320,000
(a)(2)
$30.00
$30.00
$ 1,100,000
$
360,000
360,000
60,000
$144,000
36,000
40,000
108,000
200,000
300,000
800,000
528,000
$272,000
$272,000
30,000
$302,000
*EXERCISE 8-16
(a)
$ 800
1,500
300
$2,600
(b)
WU EQUIPMENT COMPANY
Income Statement
For the Year-Ended December 31, 2012
Variable Costing
____________________________________________________________
Sales (1,200 units $4,500)
Less: variable costs
Variable COGS (1,200 units $2,600)
Variable S&A expense (1,200 units $70)
Contribution margin
Less: fixed costs
Fixed manufacturing overhead
Fixed S&A expense
Net Income
(c)
$5,400,000
$3,120,000
84,000
1,200,000
100,000
$800
$800
3,204,000
2,196,000
1,300,000
$ 896,000
WU EQUIPMENT COMPANY
Income Statement
For the Year-Ended December 31, 2012
Throughput Costing
____________________________________________________________
Sales (1,200 units $4,500)
Less: COGS (1,200 units $800)
Throughput contribution margin
Less: Operating expenses
Direct labour (1,500 $1,500)
Variable MOH (1,500 $300)
Variable S&A (1,200 $70)
Fixed MOH
Fixed selling and administration expenses
Net Income
(e)
$5,400,000
960,000
4,440,000
$2,250,000
450,000
84,000
1,200,000
100,000
4,084,000
$356,000
$896,000
540,000
$356,000
PROBLEM 8-29A
(a)
Per unit product cost: $30 + $40 + $10 + ($70,000 2,000) = $115
$297,500
$
230,000
230,000
34,500
195,500
102,000
67,850
$34,150
__________________________________________________________
Sales
Less: Variable COGS
Inventory, beginning
Plus: Cost of goods manufactured
Cost of goods available for sale
Less: Inventory, ending
Variable cost of goods sold
Variable selling and administrative
Contribution margin
Less: fixed costs ($70,000 + $50,000)
Net income
$297,500
$
160,000
160,000
24,000
136,000
17,850
153,850
143,650
120,000
$23,650
$23,650
10,500
$34,150
____________________________________________________________
__
Sales (1,700 units $175)
$297,500
Less: COGS (1,700 units $30)
51,000
Throughput contribution margin
246,500
Less: Operating expenses
Variable COGS (2,000 ($40 + $10))
$100,000
Variable S&A (6% Sales)
17,850
Fixed ($70,000 + $50,000)
120,000
237,850
Net Income before tax
$8,650
(e)
Reconciliation, 2012
Variable costing net income
Less: costs deferred in ending inventory
[($40 + $10 ) 300 units]
Throughput costing net income
$23,650
15,000
$8,650
*PROBLEM 8-30A
(a)(1) Manufacturing cost per unit using normal costing:
Direct material
Direct labour
Variable overhead
Fixed overhead ($70,000 2,500 units)
$30
40
10
28
$108
(a)(2)
ALTA PRODUCTS LTD.
Income StatementNormal Costing
Month ended August 31, 2012
____________________________________________________________
__
Sales (1,700 $175)
Less: COGS
Inventory, beginning
Plus: Cost of goods manufactured
Cost of goods available for sale
Less: Inventory, ending
Unadjusted cost of goods sold
Plus: volume variance*
Gross profit
Less: Selling and Administration
[(6% $297,500) + $50,000]
Net income
*(2,500 2,000) $28
$297,500
$
216,000
216,000
32,400
183,600
14,000
197,600
99,900
67,850
$32,050
(b) Reconciliation
Normal costing net income
Plus: Additional fixed MOH deferred in ending inventory
[300 units ($35 $28)]
Absorption costing net income (from P8-29A)
$32,050
2,100
$34,150