Answer:
a. $197,600
b. $163,400
c. $108,600
Explanation:
a. Manufacturing margin = Sales - Variable cost of goods sold
= $380,000 - $182,000
= $197,600
b. Contribution margin = Manufacturing margin - Variable selling and administrative expenses
= $197,600 - $34,200
= $163,400
c. Income from operations = Contribution margin - Fixed manufacturing costs - Fixed selling and administrative expenses
= $163,400 - $57,000 - $2,800
= $108,600
Answer:
the ending inventory using the LIFO method is $1,225
Explanation:
The computation of the value of the inventory using the LIFO method is shown below;
Since there are 196 closing units
So,
= 146 units × $6 + 49 units × $7
= $882 + $343
= $1,225
The $6 come from
= $882 ÷ 147 units
And, $7 comes from
= $1,372 ÷ 196 units
Hence, the ending inventory using the LIFO method is $1,225
Answer:
Adjusted book balance will be $4258
Explanation:
We have given ending book balance = $4200
Error in recording = $50
Interest revenue = $33
And service charge = $25
We have to find the adjusted book balance
Adjusted book balance is given by
Adjusted book balance = Ending book balance + error in recording + interest revenue - service charge = $4200+$50+$33-$25=$4258