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Fiesta28 [93]
3 years ago
6

Use the following Window Breeze Company income statement to answer the question. Window Breeze Company is a small manufacturer o

f window air conditioners and reported the following: Window Breeze Company Full Costing Income Statement For the Year Ending December 31, 2011
Sales ($150 per unit) $120,000
Less cost of goods sold 35,000
Gross margin 85,000
Less selling and administrative expenses:
Selling expense $15,000
Administrative expense 15,000 30,000
Net income $55,000
Annual FMOH was $25,000 and 1,000 units were produced. All administrative costs were fixed. Included in the $15,000 selling expense was $10,000 of fixed selling.
Business
1 answer:
Vikki [24]3 years ago
8 0

Missing information:

How much is the value of full costing ending inventory?

Answer:

$8,750

Explanation:

1,000 units were produced and 800 were sold, so ending inventory = 200 units

total production cost per unit (under full costing) = $35,000 / 800 = $43.75

ending inventory = $43.75 x 200 = $8,750

Full costing basically refers to absorption costing, which calculates COGS using both variable and fixed costs (total production costs).

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What does the sarbanes-oxley act of 2002 "require the ceo and cfo to do"?
Dafna11 [192]

The Sarbanes-Oxley Act of 2002 requires the CEO (Chief Executive Officer) and the CFO (Chief Financial Officer) to personally certify the accuracy of the financial statement that the company has filed with the Securities and Exchange Commission  as members of senior management.

4 0
2 years ago
In 2020, HD had reported a deferred tax asset of $130 million with no valuation allowance. At December 31, 2021, the account bal
Ray Of Light [21]

Answer:

The income tax expense for 2021 income statement is $101 million as computed in the explanation section below.

Explanation:

The income tax expense in the year 2021 is the income taxes payable while adding the reduction in deferred tax asset or deducting the increase in deferred tax asset plus the portion of the current deferred tax asset not realizable using the applicable tax rate as found below:

Income tax payable                                                          $90 million

deduct;increase in deferred tax asset($170-$130)         ($40 million)

Add;unrealized deferred tax asset($170*30%)                $51 million

Income tax expense for 2021 income statement            $101 million

6 0
2 years ago
Pick the TRUE statement: A. Investors (stockholders) and potential investors are mainly interested in a company's liquidity rati
Usimov [2.4K]

Answer:B

Explanation:

5 0
3 years ago
Sean is initially unsure about which laundry detergent brand to buy: Stainz-Out or Ocean Fresh. Thanks to advertising, he has le
svlad2 [7]

Answer:

Positive effect advertisement

Explanation:

Base on the scenario been described in the question, the effect of the Ocean fresh because of the positive effect advertisement. This so because he discovered that ocean fresh is more cheaper and has almost the same price with that of stainz-out.

We can define positive advertisement as some kind of marketing strategies which show the target population all the positive effects which one can receive due to any particular product or service

4 0
3 years ago
Aaron Company uses the periodic inventory cost flow method. If Aaron's ending inventory is understated due to an accounting erro
cestrela7 [59]

Answer:

a. net income= understated, retained earnings= understated

Explanation:

In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if <u>ending inventory is understated</u>,  then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to <u>net income and gross profit being understated.</u>

Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.

4 0
3 years ago
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