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
Free_Kalibri [48]
3 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]3 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>

You might be interested in
How can a nation improve its business climate?
Zarrin [17]
Reduce interest rates to make it easier for businesses to obtain new loans and expand commerce. Also, create tax inventives for desired business that would benefit say a nation that is on a coastal waterway. Offerring a reduction in taxes paid by corporations that import and export goods and services. This attracting more business.
5 0
3 years ago
Read 2 more answers
Sheridan Company used high-low data from June and July to determine its variable cost of $12 per unit. Additional information fo
Vinvika [58]

Answer:

See below

Explanation:

June 37,600 - 2,300 = 35,300

July 17,200 - 600 = 16,600

5 0
3 years ago
Statement on Standards for Tax Services No. 1 establishes as a basic principle of providing tax services that the CPA:a. Must ha
ipn [44]

Answer:

a. Must have a good faith belief that the tax return position will be accepted by the IRS.

Explanation:

Certified Public Accountant (CPA) is a term used to refer to the state title of approved accountants in the Uniform Certified Public Accountant Examination. The CPA allows these professionals to issue opinion statements in financial reports, following a few rules. For example, the Tax Services Standards Statement No. 1 states that a basic principle of the provision of tax services that the CPA has is to have a good faith belief that the tax return position will be accepted by the IRS.

3 0
3 years ago
Scranton Shipyards has $20 million in total investor-supplied operating capital, and its WACC is 10%. Scranton has the following
Setler [38]

Answer: $400,000

Explanation: Given the following :

Operating Income (EBIT) = $4,000,000

Weighted average cost of Capital (WACC) = 10% = 0.1

Operating capital = $20,000,000

Taxes = 40% = 0.4

Economic Value Added (EVA) is given by;

EBIT x (1-Tax) - (WACC x Operating capital)

$4,000,000 × (1-0.4) - (0.1 × 20,000,000)

$4,000,000 × (0.6) - (2,000,000)

$2400,000 - $2,000,000

=$400,000

6 0
3 years ago
In response to an upturn in the economy, entrepreneurs seek to expand their businesses. a. What will happen to nominal interest
kicyunya [14]

a. Nominal interest rates Increase and Aggregate demand Decrease

b. New Fed policy Buy bonds

Explanation:

When contemplating unemployment, the nominal interest rate applies to the rate of interest. Net may, without taking into consideration any commissions or compounded interest, be related to the advertised or reported interest rate of a loan.

The aggregate demand (AD) for finished commodities and facilities in the market at a certain time is aggregated. Strong demand is often named, but this term is often used in many ways. This is the market for a country's gross national product.

When the Fed sells debt in the international market, the world economy money supply is expanded by exchanging debt for cash from the general public. Instead, when the Fed sell bonds, the supply of money is reduced by cash being pulled out of the market in return for bonds. The Fed also sells bonds.

7 0
3 years ago
Other questions:
  • Lars, a shoe salesman, is paid every two weeks, whereas Tom receives a commission for each pair of shoes he sells. Evidently, La
    6·1 answer
  • Normally, most organizational objectives can be summarized as:
    10·1 answer
  • Accounting profits are typically
    13·1 answer
  • Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead accou
    5·1 answer
  • Situation 22-4 Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $200,000 in total revenues and paid $1
    12·1 answer
  • A representative from AT&amp;T called Dr. Michaels after he switched to its new U-verse telephone system. The firm wanted to mak
    14·1 answer
  • SQC Inc. had sales of $3,000,000, cost of merchandise sold of $2,100,000, and average inventory of $140,000. What is SQC Inc.'s
    8·1 answer
  • The discount rate is a. the rate at which the Fed lends to banks. b. the rate at which public banks lend to other public banks.
    12·1 answer
  • The nature of the Federal Reserve can best be described as follows: a A blended public-private institution. b The Fed branches a
    5·1 answer
  • A market that has no barriers to entry and many small firms selling products that are slightly different from one another is bes
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!