### Widget inventory at the end of year using variable costing

Assignment Help Accounting Basics
##### Reference no: EM13150864

Abigail Corporation produces widgets. In 2008, its first year of operations, the company produced 100,000 widgets and sold 90,000 widgets. The selling price is \$70 per widget.

The production costs are
Direct Materials \$10 per widget
Direct Labor \$5 per widget
Variable Manufacturing Overhead \$12 per widget
Fixed Manufacturing Overhead \$600,000 in total

The company also had fixed selling costs of \$100,000 and fixed administration costs of \$150,000

1. How many widgets are in the inventory at the end of the year?

2. Under the variable costing method, are fixed overhead costs a product or period cost?

3. Under the full costing method, are fixed overhead costs a product or period cost?

4. Under the full costing method, are fixed selling costs a product or period cost?

5. What is the product cost of one widget using the full costing method?

6. What is the product cost of one widget using the variable costing method?

7. What is the cost of goods sold using the full costing method?

8. What is the variable cost of goods sold?

9. What is the dollar value of the widget inventory at the end of the year using full costing?

10. What is the dollar value of the widget inventory at the end of the year using variable costing?

#### Questions Cloud

 Estimated total factory overhead costs : Poobah Manufacturers Inc. has estimated total factory overhead costs of \$95,000 and 10,000 direct labor hours for the current fiscal year. If job number 117 incurred 1,600 direct labor hours, the work in process account will be debited and factory.. What is the meaning of biodiversity : What is the meaning of biodiversity? And what does that have to do with the succession progress of a plant turning into Hardwood Trees. Chemist wants to dispense the liquid using a pipette : Rather than weigh the sample on a balance a chemist wants to dispense the liquid using a pipette. What volume (in mL) should she measure out? Calculate the probability of a diploid individual : Calculate the probability of a diploid individual with the genotype AaBBCc producing a gamete (egg or sperm) by meiosis with the following alleles "A", "B", "C". Widget inventory at the end of year using variable costing : What is the dollar value of the widget inventory at the end of the year using variable costing? What decision should be made by the conservative : Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales. What decision should be made by the conservative? Target contribution margin-amount of actual sales : Contribution margin to sales ratio is 84% for the ABC Co. and the breakeven point in sales is Rs. 150,000. The company desires a target net income of Rs. 42,000. What proportion of the purple-flowered progeny will breed : In the jimsonweed plant, purple flowers are dominant to white. Self-fertilization of a particular purple-flowered jimsonweed produces 28 purple-flowered and 10 white-flowered progeny. What proportion of the purple-flowered progeny will breed true? Explain increasing boiling point : Rank the following aqueous solutions in order of increasing boiling point: 0.10 mNa2SO4, 0.10 m SrSO4, 0.25 m sucrose, 0.20 m glucose, 0.15 m NaCl

### Write a Review

#### Entries to record sales and collections

Prepare the entries to record sales and collections during the period. Prepare the entry to record the write-off of uncollectible accounts during the period.

#### Amount of loss-claim on current year tax return

At the time of the notification, the note had a balance due of \$15,500. What is the amount of loss, with respect to the note, that Hank's Auto may claim on the current year tax return?

#### Entry to assign overhead to production

At Ace Company, overhead is assigned to production departments at the rate of \$5 per machine hour. In July, machine hours were 3,000 in the Machining Department and 2,400 in the Assembly Department. Prepare the entry to assign overhead to producti..

#### Costs according to budgeted usage

Variable operating costs \$6.50 per ton-mile, Fixed Costs \$8,000,000. Each of the retail outlets is charged for cost of products delivered to it. What is the allocated cost per ton-miles in 2003 if costs are allocated according to budgeted usage?

#### Statement of partnership-realization and liquidation

The partners share profits and losses in the ratio of 3:4:3. Partner B is personally insolvent, but partners A and C have sufficient personal assets to satisfy any capital deficits.

#### Operating income change

Salter Inc.'s unit selling price is \$50, the unit variable costs are \$35, fixed costs are \$125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units?

#### Unamortized discount on the bonds

On July 1, 2010, an interest payment date, \$60,000 of Parks Co. bonds were converted into 1,200 shares of Parks Co. common stock, each having a par value of \$45 and a market value of \$54. There is \$2,400 unamortized discount on the bonds. Using th..

#### Risk of diversion of customer receipts

Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity's employees?

#### What is the amount of interest income

What is the amount of interest income that should be recognized by Jacobs in 2010, using the effective-interest method?

#### Which approach do you think would result in more useful

How do the provisions of  SFAS No. 123(R)  differ from the bill introduced by members of Congress (Dreier and Eshoo), which would require expensing for options issued to only the top five officers in a company? Which approach do you think would res..

#### Depreciation on the concession stand

After using the concession stand for 4 years, Six Flags determines that the building will remain useful for only 2 more years. Record Six Flags' depreciation on the concession stand for year 5 by the straight line method.

#### What is net present value using these alternative estimates

Calculate the net present value of the project. (For all net present value calculations, if the net present value is negative, show the amount in (parenthesis). Round all answers to 0 decimal places.)