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Chapter 9A Homework
Chapter 9A Homework
Chapter 9A Homework
9-16
1.
(a) Ending Inventory April =500 – 350 = 150
Ending Inventory May = 150 + 400 – 520 = 30
Apr-11 May-11
$12,480,00
Revenues ($24,000 × 350; $24,000 × 520) $8,400,000 0
Variable costs
(b)
Budgeted fixed manufacturing cost per unit = Budgeted fixed manufacturing costs/
Budgeted production = $2,000,000/500 = $4,000
Budgeted total manufacturing cost per unit = Budgeted fixed manufacturing cost per unit
+ Budgeted variable manufacturing cost per unit = $4,000 + $10,000 = $14,000
Apr-11 May-11
$12,480,00
Revenues ($24,000 × 350; $24,000 × 520) $8,400,000 0
Cost of goods sold
9-20
1.
2012 Production = 2012 Sales + Ending Inventory - Beginning Inventory = 345,400 +
34,500 – 85,000 = 294,900 units
3. This is because of fixed manufacturing overhead that becomes the part of inventory
costs under absorption costing system. In addition, the Zwatch’ case is that sale is
higher than production (operating income using variable costing is higher than
operating income calculated using absorption costing).