need solving, answer is given1. [90,000]2. [7]3. [72,000]4. [18,000]5. [(56,000)]6. [(42,000)]7.PRODUCTION Compute the following:(1) Total manufacturing costs for the year.(2) Fixed manufacturing overhead per unit.(3) Cost of Goods Sold for the year.(4) Cost of ending inventory to be presented in the financial position.(5) Income/(loss) under Variable Costing.(6) Income/(loss) under Absorption Costing.(7) Which is higher, fixed production cost or fixed period costs? Use the underlined words incapital letters as your choice. The following information from the first-year absorption-based accounting records of ShalomCompany was made available:Total fixed costs incurredTotal variable costs incurredTotal period costs incurredTotal variable period costs incurredProducedSoldSales priceProvide answers to the following items:120,00060,00090,00040,00010,000 units8,00015unitsper unit

Manufacturing cost :— It is the total cost incurred in the manufacturing of product during the…

Answered: The following information from the…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 10E

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For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?
The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Required: Select the graph that matches the lettered cost described here. a. Depreciation of equipmentthe amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity billflat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water billcomputed as follows: d. Depreciation of equipmentthe amount is computed by the straight-line method. e. Rent on a factory building donated by the citythe agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workersone repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.).
In what way do the cost of production summaries in Chapter 6, prepared using the weighted average cost method, differ from the cost of production summaries presented in Chapter 5? What is the reason for this difference?
The cost of the ending inventory under absorption costing is higher than the cost of ending inventory under varibale costing by 1. an amount equal to the fixed overhead cost per unit. 2. an amount computed by multiplying the units in the ending inventory by the fixed costs per unit. 3. an amount equal to the difference in the income amounts under both costing methods. 4. the amount equal to the fixed overhead cost charged to expense during the period.
1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining after cost of goods sold has been deducted from sales revenues. B. The amount remaining fixed costs have been deducted from sales revenue. C. The amount remaining after fixed costs have been deducted from variable costs. D. The amount remaining after variable costs have been deducted from sales revenue. 2. Which of the following financial statements reports information as of a specific date? Select one: A. Statement of Changes in Equity. B. Statement of Profit or Loss and other Comprehensive Income. C. Statement of Cash Flows. D. Statement of Financial Position. 3. The following are objectives of budgeting EXCEPT: Select one: A. Compare organisational actual achievement with planned goals. B. Ensuring departments within an organisation operate as a team. C. Establishing and communicating organisational goals. D. Developing appropriate high technology information system for an…
Compute for:a. Unit product cost under absorption costing. b. Unit product cost under variable costing. c. Ending inventory (February) under variable costing. d. Ending inventory (February) under absorption costing.
Using Marginal costing: (i) Calculate the production cost per unit. (ii) Prepare an income statement for the year
Which formula reconciles the difference between absorption and variable-costing income? a. Change in inventory units x predetermined variable-overhead rate per unit. b. Change in inventory units / predetermined variable-overhead rate per unit. c. Change in inventory units x predetermined fixed-overhead rate per unit d. Change in inventory units / predetermined fixed-overhead rate per unit. e. Change in net income x fixed-overhead rate per unit
The first step in determining the cost per EUP per cost component under the weighted average method is to * a. add the beginning Work in Process Inventory cost to the current period's production cost.b. divide the current period's production cost by the equivalent units.c. subtract the beginning Work in Process Inventory cost from the current period's production cost.d. divide the current period's production cost into the EUP.
Which components correspond to the following terms? Match each item to a choice: Choices: Selling price of perishable goods Selling price, variable costs Fixed expenses Contribution margin Equipment, cost of goods sold, labor Selling price, variable costs, contribution margin ratio Quantity, mark-up/down, spoilage Payroll, utilities, insurance
Using absorption costing:(i) Calculate the production cost per unit. (ii) Prepare an income statement for the year.

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