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
myrzilka [38]
3 years ago
6

AJ Manufacturing Company incurred $50,000 of fixed product cost and $40,000 of variable product cost during its first year of op

eration. Also during its first year, AJ incurred $16,000 of fixed selling and administrative costs and $13000 of variable selling and adminstrative costs. The company sold all of the units it produced for $160,000.Required:Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).
Business
1 answer:
inn [45]3 years ago
7 0

Answer:

Sales= 160,000

COGS= (40,000 + 50,000)= (90,000)

Gross profi= 70,000

Other expenses:

Fixed selling and administrative costs= (16,000)

Variable selling and administrative costs= (13,000)

Net operating income= $41,000

Explanation:

Giving the following information:

$50,000 of the fixed product cost

$40,000 of variable product cost during its first year of operation.

$16,000 of the fixed selling and administrative costs

$13000 of variable selling and administrative costs.

The company sold all of the units it produced for $160,000

Under GAAP requirements, the income statement follows this structure:

Sales Revenue

(Cost of goods sold)

=Gross profit

(Operating expenses)

Income from other Operations

= Earnings before interest and taxes (EBIT)

(interest)

= Earnings before Tax

(Tax)

=Net operating income

In the example:

Sales= 160,000

COGS= (40,000 + 50,000)= (90,000)

Gross profi= 70,000

Other expenses:

Fixed selling and administrative costs= (16,000)

Variable selling and administrative costs= (13,000)

Net operating income= $41,000

You might be interested in
what do economies of scale, the ownership of essential raw materials, and patents have in common? they must all be present befor
pantera1 [17]

what do economies of scale, the ownership of essential raw materials, and patents have in common? They are all barriers to entry.

Materials or substances used in the initial stages of producing or manufacturing items are known as raw materials. On commodity exchanges around the world, raw materials are commodities that are purchased and sold. Since raw materials, like labor and capital, are factors of production, traders buy and sell them on the factor market.

Various sorts of raw materials can be employed in a wide range of goods. The inventory or input commodities that a business needs to make its products are known as raw materials. For instance, a car manufacturer would employ steel used in the construction of vehicles as a raw material.

Learn More About raw materials:

brainly.com/question/13376768

#SPJ4

5 0
2 years ago
Barney has a balance of $780 on a credit card with an APR of 31.3%, compounded monthly. About how much will he save in interest
BlackZzzverrR [31]

$119.66 is the answer for apex

8 0
3 years ago
Read 2 more answers
Guidance and discipline strategies in emergency child care setting should ?
NeTakaya
As a licensed foster mom, the answer is F. All of above
4 0
2 years ago
Ken's Car Repair uses a 35.00% material loading charge and a labor rate of $23.00 per hour. How much will be charged on a job th
Art [367]

Answer:

the amount charged on a job is $401.50

Explanation:

The computation of the amount charged on the job is shown below:

The Amount to be charged is

= Material Loading Charge + Labor Charge + Materials Cost

= 35% × $110 + $23 Per Hour × 11 Hours + $110

= $38.50 + $253 + $110

= $401.50

Hence, the amount charged on a job is $401.50

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

4 0
3 years ago
I have a question<br><br> I dont know I was just wondering
Elis [28]
Yeah for sure i guess ...
8 0
2 years ago
Other questions:
  • Security in the form of assets you pledge to a lender.
    11·2 answers
  • How would you ensure that proper plans are installed for the creditors section which was been managed poorly in the future?
    10·1 answer
  • When a negative externality exists, the private market produces?
    13·1 answer
  • 10 pts and who ever ansers fisrt is brainleist
    8·2 answers
  • What is the first sentance of an introduction called​
    11·1 answer
  • 16. Which type of footwear should be worn while working on a hybrid vehicle?
    8·2 answers
  • What is an externality? how do externalities relate to socially optimal quantity?
    7·1 answer
  • Which most accurately characterizes the method used to calculate inflation? Bureaucrats evaluate changes in the price of a natio
    5·1 answer
  • Internal information: A. attempts to describe something that is unknown. B. describes the environment surrounding the organizati
    10·1 answer
  • Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!