A community for students. Sign up today!
Here's the question you clicked on:
 0 viewing
 2 years ago
Philmore Corp. produces a single product. The following is a cost structure applied to its first year of operations, 2005:
Sales Price $15 per unit
Variable Costs:
Selling expenses $2 er unit
Manufacturing $4 per unit
Fixed costs(total incurred for the year):
Selling expenses $14 000
Manufacturing $20 000
During 2005, Philmore Corp. manufactured 5 000 units and sold 3 800. There was no beginning or ending workinprocess inventory.
Prepare the income statement using the absorption costing format.
Prepare the income statement using the variable costing format.
 2 years ago
Philmore Corp. produces a single product. The following is a cost structure applied to its first year of operations, 2005: Sales Price $15 per unit Variable Costs: Selling expenses $2 er unit Manufacturing $4 per unit Fixed costs(total incurred for the year): Selling expenses $14 000 Manufacturing $20 000 During 2005, Philmore Corp. manufactured 5 000 units and sold 3 800. There was no beginning or ending workinprocess inventory. Prepare the income statement using the absorption costing format. Prepare the income statement using the variable costing format.

This Question is Closed

sheg
 2 years ago
Best ResponseYou've already chosen the best response.0ABSORPTION COSTING PROFORMA $ $ Sales Revenue xxxxx Less Absorption Cost of Sales Opening Stock (Valued @ absorption cost) xxxx Add Production Cost (Valued @ absorption cost) xxxx Total Production Cost xxxx Less Closing Stock (Valued @ absorption cost) (xxx) Absorption Cost of Production xxxx Add Selling, Admin & Distribution Cost xxxx Absorption Cost of Sales (xxxx) UnAdjusted Profit xxxxx Fixed Production O/H absorbed xxxx Fixed Production O/H incurred (xxxx) (Under)/Over Absorption xxxxx Adjusted Profit xxxxx

GoldRush18
 2 years ago
Best ResponseYou've already chosen the best response.0i have the format and all but its when i plug in the figures somethings wrong

sheg
 2 years ago
Best ResponseYou've already chosen the best response.0Here sales revenue = 3800*$15 = $ 57,000

GoldRush18
 2 years ago
Best ResponseYou've already chosen the best response.0what would b the opening inventory figure?

sheg
 2 years ago
Best ResponseYou've already chosen the best response.0opening stock is not mentioned so it would be zero

GoldRush18
 2 years ago
Best ResponseYou've already chosen the best response.0thats what i have as well

sheg
 2 years ago
Best ResponseYou've already chosen the best response.0that is correct read this statement carefully Philmore Corp. produces a single product. The following is a cost structure applied to its first year of operations, 2005:

sheg
 2 years ago
Best ResponseYou've already chosen the best response.0now absorption cost is equal to

GoldRush18
 2 years ago
Best ResponseYou've already chosen the best response.0its better when we take it step by step i understand it more

sheg
 2 years ago
Best ResponseYou've already chosen the best response.0can u tell me how u calculate Absorption Cost

GoldRush18
 2 years ago
Best ResponseYou've already chosen the best response.0Unit Production Cost Absorption Costing Method $ Direct material 0 Direct labour 0 Variable manufacturing overhead 4 Total variable production 4 Fixed manufacturing over head 4 unit product cost 8

sheg
 2 years ago
Best ResponseYou've already chosen the best response.0ABSORPTION COST = VARIABLE COST DIRECT LABOUR + DIRECT MATERIAL + DIRECT EXPENSE + VARIABLE OVERHEADS
Ask your own question
Ask a QuestionFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.