Accounting final

Ordering labels from the printer for a particular CD.

Product

c. Setting up the CD duplicating machine to make copies from a particular master CD.

Batch

Compute the activity rate for each of the activity pool costs

= estimated overhead cost / expected activity

Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order?

Activity rate X matching info in given paragraph

Loading the automatic labeling machine with labels for a particular CD.

Batch

Sales representatives' periodic visits to customers to keep them informed about the services provided by CD Express.

Customer level

In Year 4, the company's variable costing net operating income was $984,400 and its absorp- tion costing net operating income was $1,012,400. Did inventories increase or decrease dur- ing Year 4? How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?

Deferred = absorption costing - variable costing 1,012,400 - 984,400 = 28,000

Assume that the company uses variable costing. Compute the unit product cost for one gamelan.

Direct material + direct labor + variable manufactured overhead

Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.

Direct material + direct labor + variable manufactured overhead + (fixed manufacturing overhead / units produced)

Assume that the company uses absorption costing: a. Compute the unit product cost.

Direct materials + direct labor + variable man. overhead + (fixed manu overhead / units produced)

break-even point

First get Contribution margin per unit = total C.M / sales then traceable fixed exp + common fixed exp / contribution margin per unit

Periodic maintenance of equipment, Lighting and heating the company's production facility, Preparation of quarterly financial reports.

Organization

Prepare an income statement for the year using variable costing. Explain the difference in net operating income between the two costing methods.

Sales Less: Variable cost of production Less: variable selling / admin Contribution margin less fixed: manufactured overhead Less : fixed selling / admin = Net profit

Assume that the company uses absorption costing: b. Prepare an income statement for the year

Sales (units sold * selling price) COGS (units sold * unit product cost) gross margin (sales - cogs) selling admin exp ( variable selling and administartive * units pruced + fixed selling and administrative) net operating income

Variable costing income statement

Sales (units sold * selling price) Less variable expense (headline) COGS (units sold * unit product cost) variable selling expense ( selling exp * units sold) contribution margin (sales - all var. exp) less fixed expense (headline) fixed manufactored overhead fixed selling and admin net operating income (C.M - fixed expenses)

Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.

Units in ending inventory * (fixed manufactured overhead / units produced)

Determine each year's absorption costing net operating income. Present your answer in the form of a reconciliation report.

Year 1 Ending inventory Beginning inventory Difference in inventory * overhead rate = fixed manufactured repeat for year 2 and 3 Reconciliation report Variable costing add or deduct fixed manufactured = absorption costing next repeat for other years

unit product cost using variable costing

direct material + direct labor + variable manufactored overhead

1. Assume that the company uses absorption costing: a. Compute the unit product cost.

direct materials + direct labor + Variable manufacturing overhead +

Preparation of the shipping documents for the order.

product

Prepare a contribution format income statement segmented by product lines.

total company 1 company 2 Sales = selling price * units sold variable expense = variable expense per unit * units sold contribution margin traceable fixed exp product line segment command fixed exp = net operating income

Visually inspecting CDs and placing them by hand into protective plastic cases prior to shipping.

unit