1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vlad1618 [11]
3 years ago
14

Direct materials, $7 per unit, Direct labor, $5 per unit, Variable overhead, $6 per unit, and Fixed overhead, $270,000. The comp

any produced 27,000 units, and sold 18,500 units, leaving 8,500 units in inventory at year-end. Income calculated under variable costing is determined to be $355,000. How much income is reported under absorption costing
Business
2 answers:
Arte-miy333 [17]3 years ago
7 0

Answer:

Income reported under absorption costing =$440,000

Explanation:

<em>The income reported under absorption costing can be determined by  adjusting the income under variable costing for difference in profit.</em>

<em>The steps are outlined below:</em>

<em>Step 1</em>

<em>Calculate the Overhead absorption rate</em>

OAR = Budgeted Fixed overhead/ Budgeted number of units

=  $270,000/ 27,000 units

= $10

<em>Step 2</em>

<em>Calculate the change in inventory </em>

8500 units (given)

<em>Step 3</em>

<em>Calculate the difference in profit </em>=

<em> Difference in profit = OAR × change in inventory</em>

=8500×$10

= $85000

<em>Step 4</em>

<em>Calculate Income under absorption costing</em>

<em> =  Income under variable costing +  Difference in profit</em>

=$85,000 + $355,000

=$440,000

Income reported under absorption costing =$440,000

Rudik [331]3 years ago
6 0

Answer:

$440,000

Step by Step Explanation:

Therefore:

Fixed overhead/company produced unit

 $270,000/ 27,000 units = $10

8500×$10= $85000

=$85,000 + $355,000

=$440,000

Hence; the Income reported under absorption costing is =$440,000

You might be interested in
Career readiness represents the extent to which you possess the ________ desired by employers.
ollegr [7]

Career readiness represents the extent to which you possess the <u>knowledge, skills, and attributes</u>  desired by employers.

<h3>What is Career readiness?</h3>

Career readiness can be defined as the way in which a person acquire or possess the necessary skills, knowledge that an employer desires an employee to posses.

Career readiness is essential for someone that want to build their career or the person that want to reach the highest peak of their career as this enable them to prepare ahead.

Therefore Career readiness represents the extent to which you possess the <u>knowledge, skills, and attributes</u>  desired by employers.

Learn more about Career readiness here:brainly.com/question/27841409

brainly.com/question/3299764

#SPJ1

8 0
2 years ago
Ethical dilemmas usually have clear right or wrong answers.<br><br> True<br> False
borishaifa [10]

The correct answer should be false.

8 0
3 years ago
Which of the following items is not a current liability?
Nuetrik [128]
The right answer is none of the above, its Bonds payable.
7 0
3 years ago
Colgate-Palmolive Company reports the following balances in its retained earnings.
Dafna11 [192]

Answer:

a. $1,028 million

b. 46.7%

Explanation:

a. Dividends are taken from the retained earnings and net income is added to the retained earnings. The formula for ending retained earnings is;

Ending retained earnings = Opening Retained earnings + Net Income - Dividends

14,329 = 13,157 + 2,200 - Dividends

Dividends = 13,157 + 2,200 - 14,329

Dividends = $1,028 million

b. Dividends as a percentage of income

= 1,028/2,200

= 0.467

= 46.7%

3 0
3 years ago
Which type of a person demonstrates trustworthiness?
True [87]

Answer:

a person on whom you can rely

Explanation:

it's the correct answer

5 0
3 years ago
Other questions:
  • Please answer the questions you can
    5·1 answer
  • If per capita gdp in 2014 was $900, in 2015 was $1,000, and in 2016 was $1,200, the growth rate of per capita gdp between 2014 a
    11·1 answer
  • During the accounting​ period, office supplies were purchased on account for $ 3 comma 000. A physical​ count, on the last day o
    9·1 answer
  • The ________ assumes responsibility for monitoring how the contractor is doing in terms of cost, schedule, and technical perform
    9·1 answer
  • A payments system based on money is A. more efficient than a barter economy because fewer prices are needed to establish relativ
    11·1 answer
  • Regarding generally accepted accounting principles​ (GAAP), which of the following statements is​ incorrect? A. Relevant informa
    5·1 answer
  • Bank runs:_______ a. will affect neither the money supply nor the money multiplier. b. are a problem because banks only hold a f
    8·1 answer
  • Last year all refuse collected by Shelbyville city services was incinerated. This incineration generated a large quantity of res
    11·2 answers
  • The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the
    9·1 answer
  • Please help!! My 9th time posting this please actually help me!
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!