SMG AC 222 Midterm: AC222 exam2 cheat sheet

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7 Feb 2017

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Chapter 6 variable costing and segment reporting. Template 6. 2 e. inventory / balance sheet. Variable (cid:2162)(cid:2169)(cid:2171) = (cid:2172)(cid:2171)(cid:2171)(cid:2168)(cid:4666)(cid:2162)(cid:2169)(cid:2171)(cid:4667) (cid:2158)(cid:2157)(cid:2175)(cid:2161) (cid:4666)(cid:2203)(cid:2196)(cid:2202)(cid:2201) (cid:2198)(cid:2200)(cid:2197)(cid:2186)(cid:4667) (cid:2203)(cid:2196)(cid:2202)(cid:2201) (cid:2201)(cid:2197)(cid:2186) (cid:2162)(cid:2169)(cid:2171) (cid:2186)(cid:2187)(cid:2188)(cid:2187)(cid:2200)(cid:2200)(cid:2187)(cid:2186) = (cid:2172)(cid:2171)(cid:2171)(cid:2168)(cid:4666)(cid:2162)(cid:2169)(cid:2171)(cid:4667) (cid:2158)(cid:2157)(cid:2175)(cid:2161) (cid:4666)(cid:2203)(cid:2196)(cid:2202)(cid:2201) (cid:2198)(cid:2200)(cid:2197)(cid:2186)(cid:4667) (cid:4666)(cid:2203)(cid:2196)(cid:2202)(cid:2201) (cid:2198)(cid:2200)(cid:2197)(cid:2186)(cid:2203)(cid:2185)(cid:2187)(cid:2186) (cid:2201)(cid:2197)(cid:2186)(cid:4667) Ease of use using 1 costing system (i & e) Sg&a costs are considered period costs under both never inventoried. Use units produced to calculate unit product cost use units sold to calculate cost/total period cost. Diff in ni explained by deferral of fmoh in inv taken place under the absorption cost approach. Next per cogs fmoh (cid:1846)(cid:1867)(cid:1872)(cid:1853)(cid:1864) (cid:1832)(cid:1841) (cid:1873)(cid:1866)(cid:1872)(cid:1871) (cid:1868)(cid:1870)(cid:1867)(cid:1856) (cid:1871)(cid:1867)(cid:1864)(cid:1856) Segment part or activity of org about which managers would like cost, revenue or profit data. Traceable fc fc incurred bc of the existence of the segment (if segment is eliminated, fc would disappear) Common fc fc that supports the operations of >1 segment (if a segment is eliminated, fc would remain)

Related Questions

Diego Company manufactures one product that is sold for $73 perunit in two geographic regionsâthe East and West regions. Thefollowing information pertains to the companyâs first year ofoperations in which it produced 44,000 units and sold 39,000units.

Variable costs per unit: Manufacturing: Direct materials $ 23Direct labor $ 16 Variable manufacturing overhead $ 2 Variableselling and administrative $ 4 Fixed costs per year: Fixedmanufacturing overhead $ 748,000 Fixed selling and administrativeexpenses $ 400,000

The company sold 29,000 units in the East region and 10,000units in the West region. It determined that $180,000 of its fixedselling and administrative expenses is traceable to the Westregion, $130,000 is traceable to the East region, and the remaining$90,000 is a common fixed cost. The company will continue to incurthe total amount of its fixed manufacturing overhead costs as longas it continues to produce any amount of its only product.

What is the companyâs net operating income (loss) underabsorption costing? 7. What is the amount of the difference betweenthe variable costing and absorption costing net operating incomes(losses)? Difference of Variable Costing and Absorption Costing NetOperating Incomes Variable costing net operating income (loss)Absorption costing net operating income (loss) Add: Fixedmanufacturing overhead cost deferred in inventory under absorptioncosting Add: Fixed manufacturing overhead cost released frominventory under absorption costing Deduct: Fixed manufacturingoverhead cost deferred in inventory under absorption costingDeduct: Fixed manufacturing overhead cost released from inventoryunder absorption costing which one? 8. What is the companyâsbreak-even point in unit sales? 9. If the sales volumes in the Eastand West regions had been reversed, what would be the companyâsoverall break-even point in unit sales? 10. What would have beenthe companyâs variable costing net operating income (loss) if ithad produced and sold 39,000 units? 11. What would have been thecompanyâs absorption costing net operating income (loss) if it hadproduced and sold 39,000 units? 12. If the company produces 5,000fewer units than it sells in its second year of operations, willabsorption costing net operating income be higher or lower thanvariable costing net operating income in Year 2? Higher or Lower13. Prepare a contribution format segmented income statement thatincludes a Total column and columns for the East and West regions.Income Statement Total Company East West 0 0 $0

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SMG AC 222 Midterm: AC222 exam2 cheat sheet

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