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Free_Kalibri [48]
4 years ago
13

allatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% o

f capacity during the first month. The following data summarize the results for July: Sales (4,000 units) $2,600,000 Production costs (4,350 units): Direct materials$1,218,000 Direct labor522,000 Variable factory overhead87,000 Fixed factory overhead130,500 1,957,500 Selling and administrative expenses: Variable selling and administrative expenses$60,000 Fixed selling and administrative expenses25,000 85,000 a. Prepare an income statement according to the absorption costing concept.
Business
1 answer:
vodomira [7]4 years ago
7 0

Answer:

Sales                                                                                                   2,600,000

Less Cost of Goods Sold

Opening Stock                                                              0

Add Cost of Goods Manufactured

Direct materials                                                     1,218,000

Direct labor                                                             522,000

Variable factory overhead                                       87,000

Fixed factory overhead                                           130,500

Less Closing Stock (350×(1,957,500/4,350)       (157,500)             (1,800,000)

Gross Profit                                                                                           800,000

Less Expenses

Selling and administrative expenses:

Variable selling and administrative expenses                                     (60,000)

Fixed selling and administrative expenses                                          (25,000)

Net Income                                                                                              715,000

Explanation:

<em>Product Cost (Absorption Costing) = Direct Materials + Direct Labor + Variable Overhead + Fixed Overheads</em>

<em>Period Cost (Absorption Costing)  = All Non- Manufacturing Overheads</em>

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What term describes the short period of unemployment used for matching job seekers to jobs?
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5 0
4 years ago
Define organizational structures? And explain types of organizational structures?
agasfer [191]

Answer:

Four main types of structures of the organization are:

  • Functional
  •  Divisional
  •  Matrix
  •  Flat

Explanation:

  • Functional Structure

This structure consists of employees performing similar tasks or specialties. For example, in the finance department, accountants are grouped and the same applies to marketing departments, operations, and human resources. This structure enables swift decision-making because the group members have similar skills, can communicate easily, and can also improve their ability by learning from each other.

  • Divisional Structure

This structure groups employees according to the products or projects that meet customer requirements of a certain type. For instance, a catering services restaurant could organize the employees by departments, e.g. weddings or wholesale retail departments, according to which they serve. Employees are split so that their performance is maximized.

  • Flat Structure

The traditional top-down management system is impeded by a flat organizational structure. There is no concept of the boss, every employee is the boss, which removes bureaucracy and improves direct contact. For example, an employee with an innovative idea or suggestion need not contact every level of senior management to give the person responsible for the idea. The staff can directly communicate on an individual basis.

  • Matrix Structure

A matrix structure has a complex story true as it combines elements from both the functional and the divisional models. It first divides employees according to their specialization, then further separates them into departments according to projects and products. To make this structure a lot of planning and efforts are required but one e achieved increases the productivity of the team, promotes innovation and creativity, and good decision making.

5 0
4 years ago
Sheri and Jake Woodhouse have one daughter, Emma, who is 16 years old. They also have taken in Emma's friend, Harriet, who has l
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Answer:

A

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Harriet isnt their official child nor their relative.

4 0
4 years ago
Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,200, and its ending inventor
svp [43]

Answer:

the cost of goods sold is $34,460 understated

Explanation:

The computation of the cost of goods sold is shown below

Let us assume the cost of goods sold be X - Y

X + $30,200 + ($21,400 - $2,140) = Y + $15,400

X + $49,460 =  Y + $15,000

X - Y = $49,460 - $15,000

X - Y = $34,460

Hence, the cost of goods is $34,460

Since both the ending and opening inventory are understated so the cost of goods sold is also understated

Therefore the cost of goods sold is $34,460 understated

7 0
3 years ago
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