| Exercise E5 4 ~ 10 General Information | ||||||||
| Xenoc, Inc. produces stereo speakers. The selling price per pair of speakers is | $1,800 | Costs | ||||||
| involved in production are: | ||||||||
| Direct materials | $150 | |||||||
| Direct labor | 200 | |||||||
| Variable manufacturing overhead | 100 | |||||||
| Total variable manufacturing costs per unit | $450 | |||||||
| Fixed manufacturing overhead per year | $540,000 | |||||||
| In addition, the company has fixed selling and administrative costs: | ||||||||
| Fixed selling costs per year | $210,000 | |||||||
| Fixed administrative costs per year | $110,000 | |||||||
| Exercise E5 4 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
| 1,000 | pairs. What is the value of ending inventory using full costing? | |||||||
| Variable cost per unit | Amount | |||||||
| Fixed manufacturing overhead per unit | Amount | |||||||
| Title | Formula | |||||||
| Ending inventory under full costing: | Formula | |||||||
| Exercise E5 5 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
| 1,000 | pairs. What is the value of ending inventory using variable costing? | |||||||
| Ending inventory under variable costing: | Formula | |||||||
| Exercise E5 6 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
| 1,000 | pairs. What is the cost of goods sold using full costing? | |||||||
| Title | Amount | |||||||
| Title | Formula | |||||||
| Exercise E5 7 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
| 1,000 | pairs. What is variable cost of goods sold? | |||||||
| Title | Amount | |||||||
| Title | Formula | |||||||
| Text answer as appropriate | ||||||||
| Exercise E5 8 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
| 1,000 | pairs. What is net income using full costing? | |||||||
| Sales | Amount | |||||||
| Less Title | Amount | |||||||
| Gross margin | Formula | |||||||
| Less Title | Amount | |||||||
| Less Title | Amount | |||||||
| Net income | Formula | |||||||
| Exercise E5 9 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
| 1,000 | pairs. What is net income using variable costing? | |||||||
| Sales | Amount | |||||||
| Less Title | Amount | |||||||
| Contribution margin | Formula | |||||||
| Less Title | Amount | |||||||
| Less Title | Amount | |||||||
| Less Title | Amount | |||||||
| Net income | Formula | |||||||
| Exercise E5 10 During the year, Xenoc produces | 1,200 | pairs of speakers and sells | ||||||
| 1,000 | pairs. How much fixed manufacturing overhead is in ending inventory under full costing? Compare | |||||||
| this amount to the difference in the net incomes calculated in Exercises E5 8 and E5 9. | ||||||||
| Narrative answer:??? | ||||||||
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