DEE ONE

1. Beginning Inventory 35,000

Add: production unit 130,000
Total 165,000
Less: sales in units 140,000
Total 25,000
Multiply: unit cost 30
Ending inventory absorption costing 750,000

2. Beginning inventory 35,000

Add:production unit 130,000
Total 165,000
Less: sales in units 140,000
Total 25,000
Multiply: unit cost 25
Ending inventor variable costing 625,000

3. 2,120,000
Fixed Selling 980,000
Fixed Admin 425,000
Fixed MOH 700,000
(140,000 X 5)
Under Applied (600,000 - 715,000) 65,000
2,170,000

4. Units sold 140,000

45
6,300,000

5. Variable Cost (25 x 140000) 3,500,000

Variable Selling (8 x 140,000) 1,120,000
Variance - Over applied -120,000
4,620,000
6. 50,000
AC VC
Sales 9,800,000 9,800,000
COGS -4,200,000 -3,500,000
Variable - F -65,000
Variable Selling -1,000,000 -1,000,000
Fixed Selling -980,000 -980,000
Fixed Admin -425,000 -425,000
Net Income 3,130,000 3,180,000 50,000
12+9+4+5

12+9+4

C
B
BANO
7

ABSORPTION
Sales (120,000 x P40)
CGS ((200,000 x P30) + 600,000) 6,600,000.00
Ending inventory (80,000 x ((600,000/200,000)+30)) (2,640,000.00)
Gross profit
Selling and admin
Net Income b.
 8

VARIABLE
4,800,000.00 Sales (120,000 x P40) 4,800,000.00
VC (120,000 x P30) (3,600,000.00)
(3,960,000.00) CM 1,200,000.00
840,000.00 Actual fixed manufacturing 600,000.00
(400,000.00) Selling and admin 400,000.00 (1,000,000.00)
440,000.00 Net Income a. 200,000.00
Jocelyn
9
BEG.INV (16K X 40) 640,000
NET INCOME -240,000
TOTAL 400,000/40 = 10,000 / B
Datu
10-13

10
Variable production cost 400
x ending inventory
(12,500-10,000) 2,500
Ending inventory cost - variable 1,000,000 C

11
Production cost [400+(1,750,000/12,500)] 540
x ending inventory (12,500-10,000) 2,500
Ending inventory cost - absorption 1,350,000 D

12
Variable cost per unit (VFOH+VExp)
(400 x 10,000 sold) + (150 x 12,500 produced)
Total variable annual cost expensed 5,875,000 B

13
Fixed cost per unit (1,750,000/12,500) 140
x units sold 10,000
FC on units sold 1,400,000
Add: Annual fixed selling expense 250,000
Total fixed annual cost expensed 1,650,000 D
 Bastona

14 Number of units produced 200,000

Number of units sold 162,500
Ending Inventory 37,500
Multiply by: Cost per unit 81
Enging FG Inventory 3,037,500 B.

DM 8,875,000/200,000 44.375
DL 4,250,000/200,000 21.25
MOH (Variable) 3,075,000/200,000 15.375
Total cost per unit 81

15 Ending Inventory 37,500

MOH (Fixed) (5,500,000/200,000) 27.5
Higher Operating Income (Absorption) 1,031,250 B.
Chuidian
16-18

16 Budgeted Actual FO
(1000x6/12) 500,000
Applied FO units 120,000
FO / unit
(1000/200 units) 5
Applied FO -600,000
Overapplied by 100,000

17 Sales
(60,000 units)(8,000sales/200units) 2,400,000
COGS
Absorption & variable
(60,000 units)(2,000/200) -1,200,000
GP 1,200,000
Fixed & variable selling and other exp
(800,000x6/12)+(1,200,000x6/12) -1,000,000
Net inome 200,000

18 Sales 2400000
(60,000 units)(8,000sales/200units) -900000
Budgeted actual fix FO -500,000
Fixed selling and other exp -400,000
Total 600,000