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147 the actual price for a product was 50 per unit while the planned price was 44 pe 4297191

 

147. The actual price for a product was $50 per unit, while the planned price was $44 per unit. The volume increased by 4,000 to 60,000 total units. Determine the (a) quantity factor and the (b) price factor for sales. 

148. On January 1 of the current year, C. F. Hartley Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:
 

 

Units  

Production:

50,000

Sales ($18 per unit)

42,000

Inventory, January 31

8,000

 

=====

 

 

Total Cost or Expense:

 

Manufacturing costs:

 

   Variable

$575,000

   Fixed

  75,000

      Total

$650,000

 

=======

Selling and administrative expenses:

 

   Variable

$ 33,600

   Fixed

  10,500

      Total

$ 44,100

 

=======

 

 

 

(a)

Prepare an income statement in accordance with absorption costing.

(b)

Prepare an income statement in accordance with variable costing.

 

 

 

149. On October 31, the end of the first month of operations, Carswell & Co. prepared the following income statement based on absorption costing:
 

Carswell & Co.
Income Statement
For Month Ended October 31, 20-

Sales (2,600 units)

 

$104,000

Cost of goods sold:

 

 

  Cost of goods manufactured

$85,500

 

  Less ending inventory (400 units)

 11,400

 

  Cost of goods sold

 

  74,100

Gross profit

 

$ 29,900

Selling and administrative expenses

 

  21,500

Income from operations

 

$  8,400

 

 

========

 

 

 

If the fixed manufacturing costs were $42,000 and the variable selling and administrative expenses were $15,600, prepare an income statement in accordance with the variable costing concept. 

150. Presented below are the major categories or captions that would appear on an income statement prepared in the variable costing format:

Contribution margin
Fixed costs
Income from operations
Manufacturing margin
Sales
Variable cost of goods sold
Variable selling and administrative expenses
 

(a)

Arrange the above captions in the proper order in accordance with the variable costing concept.

(b)

Which of the captions represents (1) the difference between sales and the total of all the variable costs and expenses and (2) the remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income?

 

 

 

151. On August 31, the end of the first year of operations, during which 18,000 units were manufactured and 13,500 units were sold, Finberg Inc. prepared the following income statement based on the variable costing concept:
 

Finberg Inc.
Income Statement
For Year Ended August 31, 20–

Sales

 

$297,000

Variable cost of goods sold:

 

 

  Variable cost of goods manufactured

$279,000

 

  Less ending inventory

  67,500

 

  Variable cost of goods sold

 

 211,500

Manufacturing margin

 

$ 85,500

Variable selling and administrative

 

 

  expenses

 

  40,500

Contribution margin

 

$ 45,000

Fixed costs:

 

 

  Fixed manufacturing costs

$ 12,000

 

  Fixed selling and administrative

 

 

  expenses

  10,800

  22,800

Income from operations

 

$ 22,200

 

 

========

 

 

 

Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. 

 

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