managerial accounting 5 4 421338

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:???*