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    Absorption / variable costing

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    See attached Excel file.

    Exercise E5: 11-18 General Information
    Summit Manufacturing, Inc. produces snow shovels. The selling price per snow shovel is $25

    Costs involved in production are:
    Direct materials $4.00
    Direct labor $3.00
    Variable manufacturing overhead $2.00
    Total variable manufacturing costs per unit $9.00

    Fixed manufacturing overhead per year $168,000
    "In addition, the company has fixed selling and
    administrative costs per year:" $152,000

    Exercise E5-11 During the year, Summit produces 42,000 snow shovels and sells
    38,500 snow shovels. What is the value of ending inventory using full costing?

    Fixed Manufacturing Overhead Amount
    Title Number
    Fixed Manufacturing Overhead per unit Formula

    Direct Materials per unit Amount
    Title Amount
    Title Amount
    Title Amount
    Cost per unit Formula

    Shovels produced Number
    Title Number
    Title Formula
    X ??? Amount
    Value of ending inventory using full costing: Formula

    Exercise E5-12 During the year, Summit produces 42,000 snow shovels and sells
    38,500 snow shovels. What is the value of ending inventory using variable costing?

    Direct Materials per unit Amount
    Title Amount
    Title Amount
    Cost per unit Formula

    Shovels produced Number
    Title Number
    Title Formula
    X ??? Amount
    Value of ending inventory under variable costing: Formula

    Exercise E5-13 During the year, Summit produces 42,000 snow shovels and sells
    38,500 snow shovels. Calculate the difference in full costing net income and variable costing net income
    without preparing either income statement.

    Shovels produced Number
    Title Number
    Title Formula
    X ??? Amount
    Difference in net income: Formula

    Exercise E5-14 During the year, Summit produces 42,000 snow shovels and sells
    38,500 snow shovels. What is the cost of goods sold using full costing?

    Title Amount
    Divided by ??? Number
    Fixed Manufacturing Overhead per unit Formula

    Direct Materials per unit Amount
    Title Amount
    Title Amount
    Title Amount
    Cost per unit Formula

    Title Number
    X ??? Amount
    Cost of goods sold using full costing: Formula

    Exercise E5-15 During the year, Summit produces 42,000 snow shovels and sells
    38,500 snow shovels. What is the variable cost of goods sold?

    Title Amount
    Title Amount
    Title Amount
    Cost per unit Formula

    Title Number
    Title Amount
    Variable cost of goods sold: Formula

    Exercise E5-16 During the year, Summit produces 42,000 snow shovels and sells
    38,500 snow shovels. What is net income using full costing?
    The following information relates to Porter Manufacturing for fiscal 2008, the company's
    first year of operation:

    Selling price per unit
    Direct material per unit
    Direct labor per unit
    Variable manufacturing overhead per unit
    Variable selling cost per dollar of sales
    Annual fixed manufacturing overhead
    Annual fixed selling expense
    Annual fixed administrative expense
    Units produced
    Units sold

    Required
    a. Prepare an income statement using full costing.

    © BrainMass Inc. brainmass.com October 10, 2019, 12:11 am ad1c9bdddf
    https://brainmass.com/business/accounting/282090

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    Solution Summary

    The solution explains two questions relating to absorption and variable costing

    $2.19