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
kirza4 [7]
3 years ago
10

A manufacturer reports the information below for three recent years. Year 1 Year 2 Year 3 Variable costing income $ 120,500 $ 12

5,600 $ 127,700 Beginning finished goods inventory (units) 0 1,550 1,050 Ending finished goods inventory (units) 1,550 1,050 1,150 Fixed manufacturing overhead per unit $ 3.80 $ 3.80 $ 3.80 Compute income for each of the three years using absorption costing.
Business
1 answer:
vesna_86 [32]3 years ago
8 0

Answer:

<u>Absorption income           114, 610         127,500           127,320    </u>

Explanation:

                                         Year 1          Year 2          Year 3

Beginning finished

Goods inventory (units)      0               1,550             1,050

Ending finished

Goods inventory (units) 1,550            1,050                 1,150

Change in Inventory        1550            500                  100

Fixed manufacturing

<u> Overhead per unit          $ 3.80           $ 3.80           $ 3.80 </u>

<u>Absorption Income Less</u>

<u>Variable Income                $ 5890         ($ 1900)         $ 380</u>

Variable costing income $ 120,500 $ 125,600 $ 127,700

<u>            Difference             $ 5890       ( $ 1900 )       $ 380</u>

<u>Absorption income           114, 610         127,500           127,320    </u>

<u />

When inventory increases or decreases income differs under absorption and variable costing  and is calculated by the following formula

Difference in fixed expense overhead expensed under absorption and variable costing = Change in inventory units * Predetermined overhead rate

When the inventory  units increase the fixed manufacturing overhead cost is released from inventory and deducted from variable income.

Similarly when the inventory units decrease the  the fixed manufacturing overhead cost is deferred from inventory and added to variable income.

You might be interested in
You're welcome. As a first step, our team analyzed the other potential primary contenders. The reality is that with such a stron
SCORPION-xisa [38]

Below is the complete question:

CANDIDATE: Thank you for agreeing to conduct some research to assess my potential as a candidate in the upcoming election.

CONSULTANT: You're welcome. As a first step, our team analyzed the other potential primary contenders. The reality is that with such a strong field, it is going to be difficult to gain the _______ of votes necessary to avoid a runoff unless you want to go negative from the start.

Answer:

Majority

Explanation:

The reality is that with such a strong field, it is going to be difficult to gain the MAJORITY of votes necessary to avoid a runoff unless you want to go negative from the start.

8 0
3 years ago
Companies that use job-order costing ______. Multiple choice question. make unique products use a series of standardized process
tamaranim1 [39]

Companies that use job-order costing make unique products.

<h3>What is job-order costing?</h3>

Job order costing can be defined as a costing method that is used to calculate the cost of each unique item  produce or the cost of producing each unique product that is different from the ones in the market.

Example companies can make use of job-order costing when they produce a unique bag or shoe for their customer.

Since this product they produce for this customer is unique, the manufacturer can tend to use job order costing to determine the price or selling price they will to charge the customer.

A company can use a job order cost method if it produce products with unique characteristics.

Inconclusion companies that use job-order costing make unique products.

Learn more about  job-order costing here: brainly.com/question/24516871

7 0
2 years ago
Frieda Inc. is considering a capital expansion project. The initial investment of undertaking this project is $105,500. This exp
Nana76 [90]

Answer:

WACC = 0.18 or 18%

Option b is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • D, P and E represents debt, preferred stock and common equity respectively
  • r represents the cost of each component
  • rD * (1-tax rate) represents the after tax cost of debt

WACC = 0.2 * 0.16   +   0.8 * 0.185

WACC = 0.18 or 18%

7 0
3 years ago
Which of these careers is most likely to be appropriate for a person who values adventure?
Zanzabum
Photojournalist or a smoke jumper?
8 0
3 years ago
Read 2 more answers
At the year-end, Encore Company has a product for inventory that was purchased at a cost of $23. The product's expected selling
allsm [11]

Answer:

$21

Explanation:

As we know that

The inventory should be recorded in the books of accounts by applying the lower value of cost or net realizable value

In the given case

The cost is $23

And, the net realizable value is

= Expected selling price - selling cost

= $36 - $15

= $21

So by comparing the cost and net realizable value, the net realizable value contains the lower value i.e $21 and the same is recorded on the balance sheet for inventory

6 0
3 years ago
Other questions:
  • What are the two most popular ways people make networking contacts? 
    8·2 answers
  • Here is an example of a positioning statement for Volvo:
    6·1 answer
  • The generic value chain consists of​ ________ activities and four support activities.
    8·1 answer
  • Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simp
    8·1 answer
  • How did the k-abc differ from the stanford-binet and wechsler tests?
    10·1 answer
  • Economies of scale arise when a. an economy is self-sufficient in production. b. individuals in a society are self-sufficient. c
    10·1 answer
  • Tater and Pepper Corp. reported sales for 2018 of $43 million. Tater and Pepper listed $7.6 million of inventory on its balance
    10·1 answer
  • Using the information below for Sundar Company; determine the cost of goods manufactured during the current year:Direct material
    5·1 answer
  • Part E14 is used by M Corporation to make one of its products. A total of 22,000 units of this part are produced and used every
    12·1 answer
  • Write some similarities between health workers, engineer and teacher​
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!