1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
PIT_PIT [208]
3 years ago
10

Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol

low. Direct materials $ 20 per unit Direct labor $ 28 per unit Overhead costs Variable overhead $ 6 per unit Fixed overhead per year $ 160,000 per year Selling and administrative expenses Variable $ 18 per unit Fixed $ 200,000 per year Units produced and sold 20,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing.
Business
1 answer:
erastovalidia [21]3 years ago
5 0

Answer:

1. Using Absorption Costing

Income Statement

Sales    20,000 X $216                             = $4,320,000

Less: Cost of Goods Sold (Note 1)            =($1,240,000)

Gross Margin                                             = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense         = ($560,000)

(Note 2)                                                        

Net Income                                                  = $2,520,000

Note:

  1. Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
  2. Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales    20,000 X $216                             = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000                    = ($400,000)

Direct Labor  $28 X 20,000                       = ($560,000)

Variable Overhead $6 X 20,000               = ($120,000)

Variable Selling Expense $18 X 20,000    = ($360,000)

Contribution Margin                                     = $2,880,000

Less: Fixed Costs

Fixed Overhead                                            = ($160,000)

Fixed Selling & Administrative                     = ($200,000)

Net Income                                                    = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

You might be interested in
​​Lakeside, Inc. estimated manufacturing overhead costs for the year at $371,000​, based on 180,000 estimated direct labor hours
Anna71 [15]

Answer:

D.$400 over allocated

Explanation:

For computing the over-allocated or under-allocated amount, first, we have to determine the predetermined overhead rate which is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

= $371,000 ÷ 180,000 hours

= $2.06

Now we have to find the actual overhead which equals to

= Actual direct labor-hours × predetermined overhead rate

= 190,000 hours × $2.06

= $391,400

So, the ending overhead equals to

= Actual manufacturing overhead - actual overhead

= $391,000 - $391,400

= $400 over - applied

7 0
3 years ago
Who might benefit from using a functional resumé?
Tems11 [23]
With no doubt the answer that is correct is the last one: <span>someone with lots of experience in one career field. This type of resumé are usually used by people who have had many different jobs. It requires a lot of experience. So the last option is the correct one. </span>
3 0
3 years ago
Which of the following is a type of advertising?
inysia [295]

Answer:

C

Explanation: I think its C cause it just makes sense lol

7 0
3 years ago
Read 2 more answers
_____________ is calculated by taking the quantity of everything that is sold and multiplying it by the sale price. Total revenu
Ket [755]

The quantity of each item sold is multiplied by the sale price to determine the total revenue.

What is Quantity?

Quantity can be used to describe an amount, weight, number, or measure. A quantity is a property of a single item or group of items that may be measured in terms of "less," "equal," and "more."

The total of all inbound funds that the business has received from the sale of goods or services. Gross revenue is another name for total revenue.

Total revenue is computed by multiplying the average sales price per item or unit by the quantity of items or units sold.

As a result, option (a) is correct total revenue.

Learn more about on quantity, here:

brainly.com/question/11183161

#SPJ1

5 0
2 years ago
On January 1, 2016, Brian's stock portfolio is worth $100,000. On September 30, 2016, $5,000 is withdrawn from the portfolio, an
defon

Answer:

1.93%

Explanation:

The time weighted rate of return will be computed by combining the return at every time period demarcated by a withdrawal/addition.

<em>Time 1: Jan 1, 2016 to Sep 30, 2016</em>

start value = 100,000; end value = (105,000+5,000) = 110,000

Return = \frac{110,000}{100,000}=1.1

<em>Time 2: Sep 30, 2016 to Sep 30, 2017</em>

start value = 105,000; end value = 108,000

Return = \frac{108,000}{105,000}=1.028571

<em>Time 3: Sep 30, 2017 to Dec 31, 2017</em>

start value = (108,000 + 3,000) = 111,000; end value = 100,000

Return = \frac{100,000}{111,000}=0.900901.

Therefore, time weighted return

= (1.1 * 1.028571 * 0.900901) - 1

= 0.019305

= 1.93%.

3 0
3 years ago
Other questions:
  • Benefits provide ______ and variable pay provides _____.
    10·1 answer
  • The accounting department of a large firm is interested in modeling the dynamic of its accounts receivable (that is,the money th
    6·1 answer
  • Group price discrimination has ________ consumer surplus than under ________.
    14·1 answer
  • The theory of production deals with the relationship between the factors of production and
    5·2 answers
  • QUIZ ENDS AT 12:OOPM TODAY. WILL MARK BRAINLIEST!!!!!
    6·2 answers
  • All of these careers may require you be good with numbers.<br> A. <br> True<br> B. <br> False
    15·2 answers
  • Main Company sells a video streaming device for $100. A one-year subscription to unlimited video streaming costs $150. Alternati
    6·1 answer
  • When preparing a statement of cash flows (indirect method), an increase in ending inventory over beginning inventory will result
    9·1 answer
  • Otool Incorporated is considering using stocks of an old raw material in a special project. The special project would require al
    14·1 answer
  • reducing the price of laptop computers is considered a (one word) incentive since the opportunity cost decreases when the price
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!