1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
antoniya [11.8K]
3 years ago
12

Bracey Company manufactures and sells one product. The following information pertains to the

Business
1 answer:
kumpel [21]3 years ago
7 0

Answer:

<h2>Bracey Company</h2>

1. Assuming that Bracey Company uses super-variable costing:

a. Computation of the unit product cost for the year:

Unit product cost

= unit cost of direct materials = $19

b. Bracey Company Income Statement for the year ended December 31:

Sales Revenue                                                             $990,000

Cost of goods sold                                                         342,000

Contribution                                                                 $648,000

Period Costs:

Direct labor                                                 $250,000

Fixed manufacturing overhead                   300,000

Fixed selling and administrative expenses  90,000 $640,000

Net Income                                                                       $8,000

2. Assuming Bracey Company uses a variable costing system that assigns $12,50 of direct labor cost to each unit produced:

a. Computation of the unit product cost for the year:

Unit product cost

= Direct materials $19

  Direct labor        $12.50

Total                      $31.50

b. Bracey Company Income Statement for the year ended December 31:

Sales Revenue                                                             $990,000

Cost of goods sold                                                         567,000

Contribution                                                                 $423,000

Period Costs:

Fixed manufacturing overhead                   300,000

Fixed selling and administrative expenses  90,000 $390,000

Net Income                                                                     $33,000

3. Assuming Bracey Company uses an absorption costing system that assigns $12.50 of direct labor  cost and $15.00 of fixed manufacturing overhead cost to each unit produced:

a. Computation of the unit product cost for the year:

Unit product cost:

Direct materials $19.00

Direct labor        $12.50

Overhead          $15.00

Total                  $46.50

b. Bracey Company Income Statement for the year ended December 31:

Sales Revenue                                                             $990,000

Cost of goods sold                                                         837,000

Contribution                                                                  $153,000

Period Costs:

Fixed selling and administrative expenses                    90,000

Net Income                                                                     $63,000

4. Reconciliation between super-variable costing and variable costing net operating incomes:

a.

Net operating income as per super-variable costing          $8,000

Add Ending Inventory, direct labor cost (2,000 x $12.50)  25,000

Net operating income as per variable costing                  $33,000

b.

Net operating income as per super-variable costing            $8,000

Add Ending Inventory, labor + overhead (2,000 x $27.50)  55,000

Net operating income as per absorption costing               $63,000

Explanation:

a) Data and Calculations:

Variable cost per unit:

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $19

Fixed costs per year:

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000

Fixed manufacturing overhead . . . . . . . . . .  $300,000

Fixed selling and administrative expenses .  $90,000

Total units produced . . . . . . . . . . . . . . . . . . . . . . 20,000

Total units sold . . . . . . . . . . . . . . . . . . . . . . . . . . .  18,000

Units in Ending Inventory  . . . . . . . . . . . . . . . . . .  2,000

Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . $55

b) Bracey Company's super-variable costing method bases the product cost only on the cost of totally variable costs (direct materials).  This unit product cost is then applied to the cost of goods sold and the inventory.  Other variable and even manufacturing overhead costs are not charged to the ending inventory and the cost of goods sold.  They are all regarded as period costs and charged  against income during the period.  The profit produced in the early periods will be substantially less than subsequent years profits.

Bracey variable costing technique charges all variable factory costs to determine the product cost.  On the other hand, the absorption costing method charges all factory costs, whether variable or fixed to determine the product cost.

You might be interested in
If two people are invited to invest and become partners in a business, the business owners will then the risk.
worty [1.4K]
The answer you're looking for is "Share." Hope this helps!
3 0
3 years ago
Read 2 more answers
Typically, you will receive a very low interest rate on money you deposit in a bank. Interest rates on car loans and business lo
Pavlova-9 [17]

Answer: A bank complies with the necessary permits to manage the resources of its clients.

Explanation: Banks must have a minimum level of liquidity to answer for the money they keep and for that security is that the rates paid are lower. As for a vehicle loan or corporate loans, they maintain the necessary terms and conditions so that the client can pay the fair interest and the documents are formal compared to the companies that grant loans without backing.

8 0
3 years ago
1. Cedric enters into a contract with Claudia to buy her house for $150,000. Claudia decides later not to sell
jonny [76]

Answer:

True

Explanation:

Trust me

7 0
2 years ago
Max Staxx borrowed $2,000 on a 10%, 120 day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an addit
allsm [11]

$670 is the final balance due that max wants to pay.                                                                                  

<u>Explanation</u>:

  • Max borrowed a $2000 amount on a 120-day note. First, he paid $700 in the 120-day note. So the current amount he paid is $700.
  • After thirty days max paid the amount of $630. So totally he paid $1330 in a note of 75 days. So 45 days are remaining.
  • So the final balance due is $670. So Max wants to pay $670 on a note of 45 days.

6 0
3 years ago
Impact of lockdown on business​
Zina [86]

Explanation:

Impact on lockdown on business It has been very tough time for buisness  as far as we know buisness hasnt last long enough and there has been very huge losses.

3 0
3 years ago
Other questions:
  • Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. If the expected inflation rate falls from 20
    12·1 answer
  • Which of the following is NOT an example of a caught-in or caught-between hazard?
    8·2 answers
  • In a conditional expression that includes logical operators, the and operator has a lower order of precedence than the _________
    7·1 answer
  • A strategic plan is primarily designed​ to:A. provide the answer to all the​ organization's problems.B. provide input to the str
    7·2 answers
  • Suppose we have the following information for 2008: Potential output: $17 trillion Actual output: $16 trillion Actual Deficit: $
    8·1 answer
  • I am selling a laptop on eBay and someone made a best offer of $650 this morning. I accepted and now see that the person has zer
    13·1 answer
  • Suppose you believe that Florio Company's stock price is going to decline from its current level of $82.50 sometime during the n
    10·1 answer
  • Como inicias tu carrera musical
    8·1 answer
  • A company's flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs, $20,
    5·1 answer
  • On January 1 of this year, Trucks R Us Corporation issued bonds with a face value of $ 2,000,000 and a coupon rate of 10 percent
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!