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allsm [11]
4 years ago
6

The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods invent

ory in units 0 Units produced 8,600 Units sold 5,900 Sales $ 1,180,000 Materials cost $ 172,000 Variable conversion cost used $ 86,000 Fixed manufacturing cost $ 946,000 Indirect operating costs (fixed) $ 118,000 The absorption costing operating income is:
Business
1 answer:
tankabanditka [31]4 years ago
3 0

Answer:

$378,000

Explanation:

The absorption costing operating income is shown below:-

Total manufacturing cost = Material cost + Variable conversion cost + Fixed manufacturing cost

= $172,000 + $86,000 + $946,000

= $1,204,000

Unit product cost = Total manufacturing cost ÷ Units produced

= $1,204,000 ÷ 8,600

= $140

Ending inventory in units = Produced - Sales

= 8,600 - 5,900

= 2,700

Ending inventory under absorption costing = Ending inventory in units × Unit product cost

= 2,700 × $140

= $378,000

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According to the aggregate production function, GDP increases when a nation,

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<h3>What is aggregate production function?</h3>

An aggregate production function holds constant all other production factors, like as capital, natural resources, and technology, and connects the entire output of an economy to the total amount of labour engaged in that economy. Land, labour, capital, and entrepreneurial activity are the elements that make up aggregate production function.

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Hence, According to the aggregate production function, GDP increases when a nation,

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