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Serhud [2]
3 years ago
15

​Barrett, Inc. reports the following information for the year ended December​ 31: Beginning Finished Goods Inventory 70 units Un

its produced 450 units Units sold 520 units Sales price $ 150 per unit Direct materials $ 25 per unit Direct labor $ 10 per unit Variable manufacturing overhead $ 15 per unit Fixed manufacturing overhead $ 15 comma 600 per year Variable selling and administrative costs $ 6 per unit Fixed selling and administrative costs $ 13 comma 000 per year The beginning Finished Goods Inventory costs were $ 3 comma 600 under absorption costing and $ 3 comma 500 under variable costing. What is the operating income using variable​ costing
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
4 0

Answer:

Operating Income 20,600

Explanation:

First Step will be to calculate the contribution of the begining inventory and the contribution of the untis produced in this period:

BEGINNING INVENTORY

70 units at $150 = $10,500

cost of BI                 $3,600

Contribution Begining Inventory         $6,900

get the production of this year contribution

Sales Units              150

Direct Materials 25

Direct Labour     10

Variable MO       15

Variable S&A       6

Total Variable           56

Contribution            94

Unit produced 450

Contribution Produced units 42300

Second, the operating income:

     Contribution Begining Inventory         $6,900

     + Contribution Produced units             42,300

                                    Total contribution = 49,200

 Fixed Cost

fixed MO 15,600

fixed S&A 13,000

                                       Total Fixed Cost    28,600

                                     Operating Income 20,600

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5 0
1 year ago
Legislation defining the mission of the Federal Reserve​ states: "The Board of Governors of the Federal Reserve System and the F
jeka57 [31]

Answer:

dual mandate.

Explanation:

dual mandate -

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5 0
3 years ago
In the United States, the money supply is determined: A) only by the Fed. B) only by the behavior of individuals who hold money
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Answer: Joint by the FED and by the behavior of individuals who hold money and of banks which money is held.

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Lax LLC purchased only one asset during the current year (a full 12-month tax year). On August 26 Lax placed in service computer
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3 years ago
The application of overhead has resulted in a $5,600 credit balance in the factory overhead account, and this amount is not mate
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when manufacturing overhead has a credit balance, overhead is overapplied. Overapplied overhead means that the overhead assigned to work in process is greater than the overhead incurred. Also, since the amount is immaterial, it should be closed in cost of goods sold.

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Hope it helps!

4 0
3 years ago
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