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nadezda [96]
3 years ago
7

Net income computed under absorption costing will be: higher than net income under variable costing when units produced are grea

ter than units sold. higher than net income under variable costing when units produced are less than units sold. higher than net income under variable costing in all cases. equal to net income under variable costing in all cases.
Business
1 answer:
nordsb [41]3 years ago
4 0

Answer:

higher than net income computed under variable costing when units produced are greater than units sold

Explanation:

Absorption costing and variable costing techniques are used to compute the accounting cost of various operation. The calculation procedures of both the techniques are different; that is why the results are different. The net income under absorption costing is higher because it takes into account the indirect expenses and indirect costs. Likewise, absorption costing technique also includes manufacturing or overhead cost.

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Production and sales estimates for April for Crane Co. are as follows: Estimated inventory (units), April 1 19,000 Desired inven
melisa1 [442]

Answer:

a. 11,000 units

Explanation:

Particulars                                                               Amount

Expected Sales (units)                                            12,000 [3000+4750+4250]

Add: Ending inventory                                          18,000

Less; Beginning inventory                                      <u>19,000</u>

Number of units expected to be manufactured <u>11,000 </u>

5 0
3 years ago
You plan to save $2,400 a year and earn an average rate of interest of 5.6 percent. How much more will your savings be worth at
mixas84 [53]

Answer:

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

Explanation:

Giving the following information:

Annual deposit= $2,400

Interest rate= 5.6%

Number of periods= 40

<u>First, we will calculate the future value when the deposits are made at the end:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,400*[(1.056^40) - 1]} / 0.056

FV= $336,091.14

<u>Now, if the deposits are made at the beginning:</u>

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

FV= 336,091.14 + [(2,400*1.056^40) - 2,400]

FV= 336,091.14 + 18,821.10

FV= $354,912.24

Difference= 354,912.24 - 336,091.14

Difference= $18,821.1

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

8 0
3 years ago
A company purchased $11,600 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1,3
dlinn [17]

Answer:

$10,534

Explanation:

Net purchases before discount = $11,600 - $2,080 = $9,520

Since the company paid before 10 days, it takes 3% discount as follows:

Discount = $9,520 * 3% =  9,234.40 = $285.60

Net purchases after discount = $9,520 - $285.60 = $9,234.40

The company pays for the freight charge of $1,300 and net purchases after discount. Therefore, we have:

Cash paid = $9,234.40 + $1,300 = $10,534.40, or $10,534 approximately.  

7 0
3 years ago
Bonds Payable has a balance of $928,000 and Discount on Bonds Payable has a balance of $11,136. If the issuing corporation redee
Setler [38]

Answer:

c.$7,424 gain

Explanation:

Book value of bonds payable:    

Par value of bonds payable                      $928,000  

Less: Discount on bonds payable              $11,136  

Book value of bondds payable               $916864  

Redemption value of bonds ($928,000*98%)   $909440  

Gain on Redemption of bonds                 $7424

Therefore, The amount of gain or loss on redemption is $7424.

5 0
3 years ago
Name three or four items that are not covered under homeowners insurance.
Lera25 [3.4K]

Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered.

4 0
3 years ago
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