Which answer choice correctly identifies and describes the two primary types of capital resources?

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of whi

andrew-mc [135]

Answer:

Absorption Costing Net Income 1008,000

Variable Costing Net Income 976,000

Explanation:

Kodiak Fridgeration Company

Units Produced = 80,000

Units Sold = 72,000

Ending Inventory = 8000

Per Units Cost

Direct materials $6,400,000/80,000 = $ 80

Direct labor 1,600,000 /80,000= $ 20

Variable manufacturing cost 1,280,000/80,000= $ 16

Fixed manufacturing cost 320,000 /80,000 = $ 4

Absorption Manufacturing Cost per unit= 9,600,000/80,000= $ 120

Variable Manufacturing Costs per unit = $ 116

Kodiak Fridgeration Company

Income Statement

Absorption Costing

Sales $10,800,000

Manufacturing costs:

Direct materials $6,400,000

Direct labor 1,600,000

Variable manufacturing cost 1,280,000

Fixed manufacturing cost 320,000 9,600,000

Less Ending Inventory (8000*120) (960,000)

Cost of Goods Sold 86,40,000

Gross Profit 2160,000

Selling and administrative expenses:

Variable $ 72,000* 13.5= 972,000

Fixed 180,000

Net Income 1008,000

Kodiak Fridgeration Company

Income Statement

Variable Costing

Sales $10,800,000

Variable manufacturing cost

(80,000*116) 9280,000

Less Ending Inventory ( 8000*116) 928,000

Cost of Goods Sold 83,52,000

Gross Contribution Margin 2448,000

Variable Selling and administrative expenses

(72000 * $1,080,000/80,000) 972,000

Contribution Margin 1476,000

Less Fixed Expenses

Fixed manufacturing cost 320,000

Fixed 180,000 500,000

Net Income 976,000

3. The difference in absorption and variable costing income is because in absorption costing the fixed costs are treated as unit cost and in variable costs the fixed costs are treated as period costs. Also the fixed costs of the ending units is deducted in absorption costing where it is not deducted in variable costing.

5 0

3 years ago

All activities associated with the flow and transformation of goods and services from the raw material stage to the end user, to

salantis [7]

Answer: Supply chain

Explanation: The sequence of steps taken by the company for production and delivery of the good or service produced is called supply chain.

In simple words, supply chain can be defined as the network a company shares with its suppliers to effectively distribute goods to the consumer.

From the above explanation we can conclude that the right answer is SUPPLY CHAIN.

6 0

4 years ago

Read 2 more answers

A storage tank acquired at the beginning of the fiscal year at a cost of $90,000 has an estimated residual value of $12,000 and

MrRa [10]

Answer:

The annual depreciation under straight line method is $3,120

And under double-declining method:

Year 1 = $7,200

Year 2= $6,624

Explanation:

Please find the attached for the calculations

7 0

3 years ago

How can producers make the most profit? Check all that apply.

Ymorist [56]

Answer:

The answer is B, C, and E.

Explanation:

Saw this post and one other neither had the correct answer so i figured i would help anyone out that needs the correct answer.

4 0

3 years ago

Sam's Pizza is considering a new store location. For accounting purposes, fixed operating costs for a store are $245,000 a year,

Yuki888 [10]

Answer:

33,793 pizzas

Explanation:

The annual break-even sales level for the number of pizzas sold in the location is computed using the break-even sales units formula below:

break-even sales=fixed costs/contribution margin per pizza

fixed costs=$245,000

contribution margin per pizza=selling price-variable cost

selling price=$12.50

variable cost=selling price*42%

variable cost=$12.50*42%

variable cost=$5.25

contribution margin per pizza=$12.50-$5.25 =$7.25

break-even sales=$245,000/$7.25 = 33,793 pizzas

5 0

3 years ago