Finance Assignment | Professional Writing Services

Quarryman Corporation Case SP 2020

Part I: Quarryman Corporation manufactures and sells 50-inch electronic products that can do just about anything any electronic device can do.  They use a standard cost system.  Actual data relating to January, February, and March 2020 are as follows:

January February March
Unit data:
Beginning Inventory 0 100 100
Production 1,600 1,500 1,600
Sales 1,500 1,500 1,590
Variable Costs:
Var. Manufacturing Cost

per unit produced

$1,000 $1,000 $1,000
Var. Marketing cost per unit sold $700 $700 $700
Fixed Costs:
Manufacturing Costs $515,000 $515,000 $515,000
Marketing  and Admin Costs $160,000 $160,000 $160,000

The selling price per unit is $3,300.  The budgeted level of production used to calculate the budgeted fixed manufacturing costs per unit was 1,600 units in January, 1,500 units in February, and 1,600 units in March.They were so accurate at predicting their costs there are no price, efficiency, spending or volume variances.  They set standard costs each month.  In other words, when using absorption costing, they accurately determined they would produce 1,600 units in January, 1,500 in February and 1,600 in March.

  1. Prepare income statements for Quarryman Corporation in January, February, and March 2020 using: (a) variable costing and (b) absorption costing.Prepare your income statement to the nearest dollar.

To keep it simple you can assume that the cost of product sold per unit in February and March is the same as cost of units produced during that month.  In other words, you do not need to assume that 100 of the units sold in February were sold at January’s cost per unit, and the same goes for March.  This is the same as assuming the firm is using the LIFO inventory assumption.

  1. Calculate and explain the difference in operating income for January, February, and March under variable costing and absorption costing. In other words, provide a reconciliation between the absorption costing and the variable costing operating income calculations. If the operating profit calculations are different, quantify the difference and explain where it is.  Inevitably there may be some very minor rounding issues when you do a reconciliation.  Do not be concerned with minor rounding issues.  I will not deduct any points if your reconciliation is a few dollars off due to rounding.

Part II: The variable manufacturing costs per unit of Quarryman Corporation are as follows:

January February March
Direct materials cost per unit $535 $535 $535
Direct manufacturing labor cost per unit $190 $190 $190
MOH cost per unit $275 $275 $275
$1,000 $1,000 $1,000
  1. Prepare income statement for Quarryman Corporation in January, February and March 2020 under throughput costing.
  2. Contrast the results of throughput costing with those of variable costing. If you calculate different profit figures, reconcile the difference. In other words, tell me where the difference is, and quantify it.  Again, do not be concerned with minor rounding issues, as they are not material.
  3. Once again, you are controller of this organization. Your boss, the general manager, has suddenly taken an interest in this activity.  He or she says to you:  “I really like this idea.  There’s only one requirement for me to approve this.  I would like the option of selecting which method we use each year.  For example, one year I might think absorption costing is the best way to display our results to headquarters.  Another year I might think throughput costing is the way to show our results.  Give me that choice, and we can go ahead with this idea.”  Are there any problems with your boss’s idea?  What would you tell him or her?
My MasterPapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.