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3 years ago

A separation between ownership and management is most likely to occur in a:

1 answer:

7 0

a separation between ownership and management is most likely to occur in a : Corporation
In a corporation, the owners (or more commonly known as the share holders) tend to higher the executive that they believe is capable to manage the company

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During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of whi

Anvisha [2.4K]

Answer:

Part a.

Income statement based on the absorption costing concept.

Sales $8,800,000.00

Less Cost of Sales

Beginning Inventory $0

Add Manufacturing Cost $6,048,000.00

Less Ending Inventory ($504,000.00) ($5,544,000.00)

Gross Profit $3,256,000.00

Less Expenses :

Selling and administrative expenses:

Variable $528,000.00

Fixed $352,000.00 ($880,000.00)

Net Income/(loss) $2,376,000.00

Part b.

Income statement based on the variable costing concept.

Sales $8,800,000.00

Less Cost of Sales

Beginning Inventory $0

Add Manufacturing Cost $5,520,000.00

Less Ending Inventory ($460,000.00) ($5,060,000.00)

Contribution $3,740,000.00

Less Expenses :

Fixed manufacturing cost $528,000.00

Selling and administrative expenses:

Variable $528,000.00

Fixed $352,000.00 ($1,408,000.00)

Net Income/(loss) $2,332,000.00

Part c.

Reason : Fixed Costs deferred in Ending Inventory in Absorption Costing has resulted in a higher Income.

Explanation:

Units in Ending Inventory Calculation :

Production 48,000

Less Sales (44,000)

Ending Inventory 4,000

Absorption Costing Calcs

Variable Manufacturing Costs

Direct materials $3,360,000.00

Direct labor $1,344,000.00

Variable manufacturing cost $816,000.00

Fixed manufacturing cost $528,000.00

Total $6,048,000.00

Ending Inventory = $6,048,000.00 × 4,000 / 48,000

= $504,000

Variable Costing Calcs

Variable Manufacturing Costs

Direct materials $3,360,000.00

Direct labor $1,344,000.00

Variable manufacturing cost $816,000.00

Total $5,520,000.00

Ending Inventory = $5,520,000.00 × 4,000 / 48,000

= $460,000

4 0

3 years ago

joslyn completed the lease term on her car and decided to turn the car in instead of purchasing it.Upon inspection, the dealerah

monitta

The fee is called an "excess mileage fee" she she has driven more miles than she was allowed in her lease agreement.

4 0

3 years ago

Read 2 more answers

Wyzard Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbishe

muminat

Answer:

Wyzard Corporation

The revenue variance in the Revenue and Spending Variances column of a performance report comparing actual results to the flexible budget for July would have been closest to: ________

$1,800 F

Explanation:

a) Data and Calculations:

Fixed Element Variable Element Actual Total

per Month per Container for February

Refurbished

Revenue $3,800 $123,400

Employee salaries and wages $40,000 $1,100 $73,800

Refurbishing materials $700 $21,800

Other expenses $29,700 $28,800

Revenue variance

Budgeted revenue (flexible) = $121,600 ($3,800 * 32)

Actual revenue 123,400

Variance $1,800

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3 years ago

Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of machining, $3600000; and ass

Fiesta28 [93]

D is correct my luv good luck

3 0

3 years ago

Grain's alternative corporation has a predicted operating income of 80,000. The managerial accountant reported that total variab

dexar [7]

Answer:

Number of units needed to reach the operating income of 80,000: 5,200 units

Explanation:

Please find the below for detailed calculations and explanations:

To achieve $80,000 of operating income, denote the number of units needs to be sold is x.

For each unit sold, the incremental in profit will be 20.

Thus, to achieve the profit of 80,000, the amount of x units sold will generate the profit before fixed cost that covers 24,000 fixed cost and 80,000 targeted profit. So, we have:

80,000 + 24,000 = 20x <=> x = 5,200 units.

* For quick calculation purpose, we may apply the formular: Units need to be sold to achieve targeted income = (Fixed cost + targeted income)/ Contribution margin per unit in monetary form.

8 0

3 years ago