G Google x Facebook AccessUH-University WileyPLUS-20165p. / WileyPLUS xS StudyRo
ID: 2415753 • Letter: G
Question
G Google x Facebook AccessUH-University WileyPLUS-20165p. / WileyPLUS xS StudyRoom C Chegg Study | Guide C D edugen.wileyplus.com/edugen/Iti/main.uni balvo, Managerial Accounting, 5e Help Assignment AssignmentOpen Assignment CALCULATOR PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Problem 5-5 mework #5 on Ch The following information is available for Skipper Pools, a manufacturer of above-ground swimming pool kits: 2015 Total 8,840 21,600 10,800 21,600 2014 12,/6U 10,800 $4,430 $790 $1,500 366 Problem 5-5 Units produced Units sold Selling price per unit Direct material per unit Direct labor per unit Varlable manufacturing overhead per unlt Fixed manufacturing overhead per year Fixed selling and administrative expense per year $4,430 $790 $1,500 366 $2,386,120 $2,386,120 $1,412,900 evi Review Results tudy Obiective $1,412,900 In its first year of operation, the company produced 12,760 units but was able to sell only 10,800 units. In its second year, the company needed to get rid of excess inventory (the extra 1,960 units produced but not sold in 2014), so it cut back production to 8,840 units Calculate protit tor both years using tull costing. (Round cost per unit to 2 decimal places, e.g. 15.25 and tinal answers to 0 decimal places, e.g.125.) 2014 2015 Nct profit LINK TO TEXT LINK TO TEXT LINK TO TEXT Note that profit has declined in 2015. Is company performance actually worse in 2015 compared to 2014?Explanation / Answer
profit is declined in 2015 due to lower production activity resulting in lower absorbtion of fixed production overheads.
Particulars 2014 2015 Units produced (a) 12,760 8,840 Units sold (b) 10,800 10,800 Selling price per unit ( c ) 4,430 4,430 Direct material cost (d) 700 700 direct labour pu ( e ) 1,500 1,500 variable manufacturing cost pu (f) 366 366 Material cost (a*d) 8,932,000 6,188,000 Direct Labour cost (a*e) 19,140,000 13,260,000 Variable manufactring cost (a*f) 4,670,160 3,235,440 fixed manufacturing OH 2,386,120 2,386,120 Total Manufacturing cost (sum of above costs) (g) 35,128,280 25,069,560 manufacturing cost per unit (g/a) 2,753 2,836 Closing stock (closing units* cost pu) (h) 5,395,880 - Opening Stock (i) - 5,395,880 Total cost of goods sold (g-h+i) 29,732,400 30,465,440 Fixed selling and administration OH 1,412,900 1,412,900 Cost of Sales (j) 31,145,300 31,878,340 Sales (k = b*c) 47,844,000 47,844,000 Profit (k-j) 16,698,700 15,965,660Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.