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GoldRush18
 3 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.
GoldRush18
 3 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.

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sheg
 3 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
 3 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
 3 years ago
Best ResponseYou've already chosen the best response.0Here sales revenue = 3800*$15 = $ 57,000

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

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

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

sheg
 3 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
 3 years ago
Best ResponseYou've already chosen the best response.0now absorption cost is equal to

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

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

GoldRush18
 3 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
 3 years ago
Best ResponseYou've already chosen the best response.0ABSORPTION COST = VARIABLE COST DIRECT LABOUR + DIRECT MATERIAL + DIRECT EXPENSE + VARIABLE OVERHEADS
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