In critical listening, it is important to determine the accuracy of facts.

ncome Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engine

Mnenie [13.5K]

Answer:

<u>Income statement according to the absorption costing</u>

Sales 2,600,000

Less Cost of Goods Sold

Opening Stock 0

Add Cost of Goods Manufactured

Direct materials 1,218,000

Direct labor 522,000

Variable factory overhead 87,000

Fixed factory overhead 130,500

Less Closing Stock (1,957,500/4,350)×350 (157,500) 1,800,000

Gross Profit 800,000

Less Period Costs :

Selling and administrative expenses:

Variable selling and administrative expenses (60,000)

Fixed selling and administrative expenses (25,000)

Net Income 715,000

Explanation:

<em>Product/Manufacturing Cost - Absorption Costing = Direct Materials + Direct Labor + Variable Overheads + Fixed Overheads</em>

<em>Period Cost - Absorption Costing = All Non - Manufacturing Costs</em>

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7 0

3 years ago

Sparky Associates sells two licenses to Kim & Company on September 1, 2018. First, in exchange for $100,000, Sparky provides

timofeeve [1]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

4 0

3 years ago

What happens to our peace and prosperity when we limit trade?

Ierofanga [76]

When we limit trade, our peace and prosperity will suffer and decrease.

<h3>What happens when trade is limited?</h3>

Trade is very important for the growth, peace, and prosperity of an economy. This is because imports give a nation more options for goods and services.

Exports then given a nation more income and better foreign exchange. This is why peace and prosperity increases when we engage in trade. Limiting trade would therefore have a negative effect on peace and prosperity.

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4 0

2 years ago

Resoudre cette equation suivante. 5 - 6 = 3 +2 x. aidez moi svp .. reponse

velikii [3]

Answer :

-2

5-6=3+2x

-1=3+2x

-1-3=2x

-4=2x

-4/2=x

-2=x

6 0

2 years ago

A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned $10 a

iVinArrow [24]

Accounting profits for the month = $4,000.

<h3>What is production?</h3>

In order to create anything for consumption, several material and immaterial inputs are combined during the production process.
It is the process of producing output, a good or service that has value and enhances people's usefulness.

<h3>What are profits?</h3>

The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
It is equivalent to total income less total expenses, which includes both direct and indirect expenses.

<h3>Solution -</h3>

Production happens 7 days a week.

Let,s tale 28 days in a month (4 weeks in a month)

50 items are produced every day and each costs $10.

50 × 10 = $500 (Daily sale)

Monthly sale = 500 × 28 = $14,000 (Monthly revenue)

Cost of production per month = $10,000.

Profit = 14,000 - 10,000 = $4,000.

Therefore, accounting profits for the month = $4,000.

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6 0

2 years ago