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Oksanka [162]
2 years ago
11

Sheridan Company sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $4400, and selling and admini

strative, $100. Fixed costs are: $18000 manufacturing overhead, and $24000 selling and administrative. There was no beginning inventory at 1/1/18. Production was 20 units per year in 2018–2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020. Income under absorption costing for 2020 is
Business
1 answer:
Minchanka [31]2 years ago
4 0

Answer:

                 Sheridan Company

                  Income Statement

  For the year ended December 31, 202x

Sales revenue                                $170,400

Cost of goods sold                      <u>($129,600)</u>

Gross profit                                     $40,800

Period costs                                  <u>($24,000)</u>

Operating income                           $16,800

cost of goods manufactured 2019 (or 2020, it is the same)= (20 x $4,500) + $18,000 = $108,000 / 20 = $5,400 per unit

COGS 2020 = 24 x $5,400 = $129,600

sales revenue = 24 x $7,100 = $170,400

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Vlad [161]

Answer:

The answer is Fixed cost.

Fixed cost remains constant for a given period and does other change with the eh level of production. However, the per unit fixed cost decreases when the Level of production increases and vice versa.

Also, fixed cost is difficult to.control and manage relatively to the variable.costs.

Explanation:

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2 years ago
A statewide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing a
STatiana [176]

Answer:

The correct answer is c. economies of scale.

Explanation:

The situation in which a company reduces its production expenses by expanding is called economy of scale. It is a situation in which the more it occurs, the cost that the company has to manufacture a product is lower.

There is a greater benefit for every extra unit we produce. This reduction in the cost of unit manufacturing is not reduced because the price of raw materials goes down, but to take advantage of a material that we have already bought and in which we invested money in the past.

Therefore, it occurs especially in situations in which the company buys more facilities. If we buy a machinery, the way to take advantage of it is to produce more since it is the way that we get a greater benefit, by taking advantage of the same machinery to produce more products, the unit cost of each product is lower. And we will get more benefit the more we produce. This benefit will be greater since we will not have to increase manufacturing costs since we have already had it before.

3 0
3 years ago
Pipelines rank third after railroads and motor carriers in ton-miles transported, but most people do not recognize pipelines as
ivann1987 [24]

Answer: See explanation

Explanation:

Some of the drawbacks to transportation via pipeline include:

1. Pipeline transportation isn't flexible, it's typically a one way system and can be used for certain fixed points only. It's flexibility is poor.

2. Once it has been laid, the capacity of the pipeline cannit be increased further.

3. Once there is leakage, repairing it is a challenge as it may not be easily detected.

4. It requires huge investment to set up and maintaining it is challenging.

5. It can lead to illegal pilferage which may being about accidents and death.

8 0
3 years ago
Sheffield Corp. determines that 53000 pounds of direct materials are needed for production in July. There are 3100 pounds of dir
zvonat [6]

Answer:

Budgeted total cost of Direct Material purchases ($) =$ 157,800

Explanation:

<em>Raw material purchase budget is determined by adjusting the raw material usage budget for opening and closing inventory of materials. </em>

Purchase budget = usage budgeted + closing inventory - Opening inventory

Material purchase budget = 53,000 + 2,700 - 3,100= 52,600  pounds

Note the closing inventory represents the stock of materials needed to be kept, hence it will increase the purchase budget. So we added.

On the other hand hands, the opening inventory represented what already existed , hence we subtracted it as it will reduce what will be required.

Material purchase budget ($) = purchase budget in quantity × standard price per quantity

Material purchase budget = 52,600 × $3 = $ 157,800

Budgeted total cost of Direct Material purchases ($) =$ 157,800  

8 0
3 years ago
Which of the following is an example of the barter system?
nlexa [21]

Answer:

B. Taking a friend to lunch in return of a favor

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Barter System is  direct commodity/ service to commodity/service exchange  , without using money as an intermediary exchange medium . It is also called C to C exchange .

Eg : Two farmers exchanging their wheat & rice , A teacher teaching grocers' child in exchange of groceries from him .

So : A. Simple Investment , C. Money Purchase , D. Money Denomination exchange - neither are examples of Barter System .

B . Paying off a friend's favour in exchange of a service (being service-service exchange) is a relatable  example.

4 0
3 years ago
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