Webster''s finish finished-goods inventory, Accounting Basics

Webster, Inc. began operations at the start of the present year, having a production target of 60,000 units. Real production totalled 60,000 units, and the company sold 95% of its manufacturing output at $50 per unit. The following costs were earned:

 

Manufacturing:

        Direct materials used                      $240,000

        Direct labor                                      480,000

        Variable manufacturing overhead       360,000

        Fixed manufacturing overhead           600,000

Selling and administrative:

        Variable                                           180,000

        Fixed                                               630,000

 

Required:

A. Suppose the use of variable costing, compute the cost of Webster's finish finished-goods inventory.

B. Calculate the company's contribution margin. Would Webster disclose the contribution margin on a variable-costing income statement or an absorption-costing income statement?

 

Posted Date: 3/22/2013 6:32:35 AM | Location : United States







Related Discussions:- Webster''s finish finished-goods inventory, Assignment Help, Ask Question on Webster''s finish finished-goods inventory, Get Answer, Expert's Help, Webster''s finish finished-goods inventory Discussions

Write discussion on Webster''s finish finished-goods inventory
Your posts are moderated
Related Questions
Q. What is Cost-benefit? Cost-benefit The cost-benefit consideration engrosses deciding whether the benefits of including optional information in financial statements exceed th

Q. Describe about Cash role in balance sheet? Cash includes deposits in banks obtainable for current operations at the balance sheet date plus cash on hand consisting of un-dep

Q. General accepted accounting principles? In general accepted accounting principles (GAAP) set forth standards or methods for presenting financial accounting information. A

Terry Dorsey started Dorsey Hardware a tiny hardware store two years ago and has struggled to make it successful. The first year of operations effected in a substantial loss in the

A swap valuation method which involves summing and computing the present value of each and every future net settlement and would be required by the contract terms either future s

Q. Show Tax benefits of LIFO? Tax benefits of LIFO The LIFO method outcomes in the lowest taxable income and thus the lowest income taxes when prices are rising. The Internal R

Which statements about marginal costing are correct? 1. The marginal cost of a product involves an allowance for fixed overheads. 2. The marginal cost of a product presents t

Q. Ledger accounts in An accounting perspective? The idea of the Internet dates to the 1960s when the military tied together several computers forming a network that allowed us

The Bayside Company uses the LIFO cost flow method to value inventory. In the current year, profit at Bayside is running unusually high. The corporate tax rate is also high this ye

define Macrs in detail