Homework Chapter 4 Managerial Accounting

E -11 DM 5 DL 4 VMO 3 FMO = 180,000/50,000 = 3.

6 Total = 15. 6 15. 6 * 5,000 (50,000-45000) = 78,000 E-12 DM 5 DL 4 VMO 3 Cost per unit = 12 $ EIV = 12 * 5000 = 60,000 E-13 Difference 3. 6 * 5000 = 18,000 And 78,000 – 60,000 = 18,000 E-14 CGS sold = 45000(sold) * 15.

60 = 702,000 E15 12 * 45000 = 540,000 E16 Sales = 30 * 45,000 = 1,350,000 CGS 702,000 CM 648,000 Less S & admin. 160,000 Net income488,000 E17 Sales = 30 * 45,000 = 1,350,000 Less var. CGS 12*45000540,000 CM810,000 less fixed costs: FMO180,000Fixed S & admin. 160,000 Net income470,000 EX5-18 3.

6 * 5000 = 18,000 And 488,000 – 470,000 = 18,000 Problem 5-2 VC per unit = 75 201320142015 Full cost per unit = 50,000/500050,000/6,00050,000/4000 108. 3312. 50 Add 757575 =8583. 3387.

50 Sales= 225*50001,125,0001,125,0001,125,000 Less CGS85*5,00083. 33*500087. 5 *4000 +83. 33*1000 =425,000416,000433,333 CM=700,000708,350691,667 Less s&admin5,0005,0005,000 Net Income695,000703,350686,667 EINV083. 33 * 10000 =83,330 b. In 2016 production exceeded the sales.

The fixed manufacturing ov.Expense from 2015 ending inventory is included in CGS in 2016. Which explains the lowest income in 2016. In 2015 because production was more than sales .

The FMOverhead costs were applied to production is not part of CGsold but part of ending inventory. c. 201320142015 Full cost per unit = 50,000/500050,000/6,00050,000/4000 108. 3312.

50 Add 757575 =8583. 3387. 50 Sales= 225*50001,125,0001,125,0001,125,000 Less vCGS(75*5,000) =375,000375,000375,000 cm=750,000750,000750,000 CM=700,000708,350691,667 Less FC: Mfo/production50,00050,00050,000Less s&admin5,0005,0005,000 Net Income695,000695,000695,000 EINV075 * 10000 =75,000 d. Variable costing does not allocate FMoverhead cost to product cost. Since the goods sold were the same number each year the income remained same for all three years. Problem 5-15 a.

Cost per unit = 75 30 5 Total = 110 add 2750,000/250,000=11=121 $ Sales= 230,000 * 150 = 34,500,000 Less CGS121*230,000 =27,830,000 CM=6,670,000 Less seeling expense . 05 * 34,500,000 + 1,500,000 = 3,225,000 Less admin exp = 900,000 Net income = 2,545,000Less s&admin5,000 Net Income695,000 EINV20,000*121 = 2,420,000 b. Variable costing Sales= 230,000 * 150 = 34,500,000 Less vCGS110*230,000 =25,300,000 Less vseliing expenses: . 05 * 34500000 = 1,725,000 C M = 7475000 Less fixed costs: Manufacturing:2,750,000 Selling expense:1500000 Admin expense:900,000 Net income 2325000 EINV20,000*110 = 2,20,000 c. Ending Inventory includes fixed manufacturing overhead = 220,000(11 *20,000) which is also the difference in the net income between full costing and variable costing.

2545,000 – 2,325,000 = = 220000