OxiClear manufactures a tile and grout cleaner.

OxiClear manufactures a tile and grout cleaner.

Question # 00152397 Posted By: solutionshere Updated on: 12/14/2015 12:37 PM Due on: 01/13/2016
Subject Accounting Topic Accounting Tutorials:
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OxiClear manufactures a tile and grout cleaner. The company was formed during the current year. As a result, there was no beginning inventory. Management is evaluating performance and inventory management issues, and desires to know both net income and ending inventory under generally accepted accounting principles (absorption costing) as well as variable costing methods. Relevant facts are as follows:Selling price per gallon$ 4.40Variable manufacturing cost per gallon0.80Variable SG&A costs per gallon0.90Fixed manufacturing costs$ 1,450,000Fixed SG&A235,000Total gallons produced650,000Total gallons sold620,000


Absorption Costing
Variable manufacturing costs$ -
Fixed manufacturing costs-
Cost of goods manufactured$ -
Cost of goods sold-
Ending inventory$ -
Sales$ -
Cost of goods sold-
Gross profit$ -
Selling, general, & administrative costs
Variable$ -
Fixed--
Net income$ -
Variable Costing
Ending inventory$ -
Sales$ -
Variable manufacturing costs-
Variable manufacturing margin$ -
Variable SG&A-
Contribution margin$ -
Fixed expenses
Manufacturing$ -
SG&A--
Net income$ -
OxiClear manufactures a tile and grout cleaner. The company was formed during the current year. As a result, there was no beginning inventory. Management is evaluating performance and inventory management issues, and desires to know both net income and ending inventory under generally accepted accounting principles (absorption costing) as well as variable costing methods. Relevant facts are as follows:
Selling price per gallon $ 4.40
Variable manufacturing cost per gallon 0.80
Variable SG&A costs per gallon 0.90
Fixed manufacturing costs $ 1,450,000
Fixed SG&A 235,000
Total gallons produced 650,000
Total gallons sold 620,000



Absorption Costing
Variable manufacturing costs $ -
Fixed manufacturing costs -
Cost of goods manufactured $ -
Cost of goods sold -
Ending inventory $ -
Sales $ -
Cost of goods sold -
Gross profit $ -
Selling, general, & administrative costs
Variable $ -
Fixed - -
Net income $ -
Variable Costing
Ending inventory $ -
Sales $ -
Variable manufacturing costs -
Variable manufacturing margin $ -
Variable SG&A -
Contribution margin $ -
Fixed expenses
Manufacturing $ -
SG&A - -
Net income $ -
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  1. solutionshere
    Tutorial # 00146952 Posted By: solutionshere Posted on: 12/14/2015 12:37 PM
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    HW7-2.xls (25.5 KB)
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