The net operating income as per the variable costing method is $14500
<u>Explanation:</u>
The unit product cost is = $18 + $10 + $4 = $32
Sales revenue ( $78 multiply with 8700 units) = $678600
Variable cost:
Variable cost of goods sold ( 8700 units multiply $32) = $278400
Variable selling and administartive (8700 units multiply $5) = $43500
contribution margin = $356700
fixed manufacturing overhead = $255200
Fixed selling and adminstrative expenses = $87000
Net operating income = $14500
<u>Note:</u> contribution margin is calculated after deducting sales revenue with variable cost
The statement, inventory can be calculated by dividing the total number of customers that arrived during a period of time by the length of that period of time, is false.
Inventory cannot be calculated by dividing the total number of customers which arrived during a period of time by the length of that period of time because that is how you calculate average flow rate.
First in calculating inventory, you will need to know the inventory levels on the first day of the accounting period. Then the inventory values must be multiplied by the number of items on hand with the unit price of the items.
Hence, one determines the total costs of goods available in that period to calculate inventory.
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Answer:
$700 (not given in the options)
Explanation:
When the policy is purchased with a payment made in advance, the entries recorded are
Debit prepaid insurance $8,400
Credit Cash account $8,400
After the first month, the expense incurred is
= 1/12 × $8,400
= $700
Entries then required
Debit Insurance expense $700
Credit Prepaid Insurance $700
In order to calculate how much of the linguist's pay got withheld for federal income tax last year, you need to do this:
53 350 * 0.179 = <u>$9,549.65</u>
Answer:
Parent's beginning of the year Retained Earnings
Explanation:
"The equity method is an accounting technique used by a company to record the profits earned through its investment in another company. With the equity method of accounting, the investor company reports the revenue earned by the other company on its income statement, in an amount proportional to the percentage of its equity investment in the other company.
When the investor has a significant influence over the operating and financial results of the investee, it can directly affect the value of the investor's investment. The investor records its initial investment in the second company's stock as an asset at historical cost. Under the equity method, the investment's value is periodically adjusted to reflect the changes in value due to the investor's share in the company's income or losses. Adjustments are also made when dividends are paid out to shareholders."
Reference: Tuovila, Alicia. “Equity Method Definition.” Investopedia, Investopedia, 8 Oct. 2019