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Posted by: Homeworkhelp
Price Quoted by Student: $7
Posted On: 2018-03-08 05:05:06
 
Question
Chan Manufacturing Company data for 20X7 follow: Sales: 12,000 units at $17 each Actual
 
Question 13-45 Chan Manufacturing Company data for 20X7 follow: Sales: 12,000 units at $17 each Actual production 15,000 units Expected volume of production 18,000 units Manufacturing costs incurred Variable $120,000 Fixed 63,000 Nonmanufacturing costs incurred Variable $ 24,000 Fixed 18,000

1. Determine operating income for 20X7, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)

2. Assume that there is no January 1, 20X7, inventory; no variances are allocated to inventory; and the firm uses a “full absorption” approach to product costing. Compute
(a) The cost assigned to December 31, 20X7, inventory; and
(b) Operating income for the year ended December 31, 20X7. (Do not prepare a statement.)
 
 

SOLUTION PREVIEW

1. Determine operating income for 20X7, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)

Variable Manufacturing Cost per Unit = $120,000 / 15,000 units

  = $8 per unit


Solutions
SOLUTION PREVIEW 1. Determine operating income
Price $7
Attachment 1: 13-45 Chan Manufacturing Company.doc
Solution Posted By: Homeworkhelp    Posted on: 08-03-2018