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
konstantin123 [22]
3 years ago
10

Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000

in beginning inventory. What is Galen Company's income under absorption costing?
Business
1 answer:
lana [24]3 years ago
7 0

Answer:

Income under absorption costing = $1,100,000

Explanation:

Marginal and absorption costing are two different methods to deal with fixed production overheads and and decide whether or not they are included in valuation of inventory.

<u>Valuation of inventory</u>

Opening and closing inventory are valued at variable cost under variable costing.  Whereas in absorption costing, opening and closing inventory are valued at full production cost (including fixed production overheads).

<u>Reconciling profits reported under two different methods</u>

When inventory levels increase or decrease during a period then profits will differ under absorption and marginal costing because of fixed production cost.

Net Income under absorption costing = Income under variable costing + fixed production cost in ending inventory – fixed production cost in beginning inventory

= $1,050,000 + $300,000 - $250,000

= $1,100,000

You might be interested in
Miami Corp. obtained the following information from its accounting records:
Alex Ar [27]

Answer:

cost of goods manufactured= $5,000

Explanation:

Giving the following information:

Beginning Finished Goods Inventory= 12,000

Ending Finished Goods Inventory= 8,000

Cost of Goods Sold= $9,000

To calculate the cost of goods manufactured, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

Isolating cost of goods manufactured

cost of goods manufactured= -beginning finished inventory + COGS + ending finished inventory

cost of goods manufactured= -12,000 + 9,000 + 8,000

cost of goods manufactured= $5,000

4 0
3 years ago
When the laptop market overtook the desktop market, blue tech inc., a leader in desktop technology, was left at a competitive di
Sedaia [141]

In this scenario, Blue Tech Inc.'s failure can be best attributed to <u>"Time compression diseconomies."</u>


We accept time compression diseconomies where the snappier a firm builds up the asset, the higher the improvement cost. We demonstrate that time compression diseconomies normally offer ascent to asset heterogeneity and henceforth upper hand in that one firm builds up the asset quicker than the other. We evaluate the supportability of the upper hand, determine conditions  

under which the asset is "incomparable" and demonstrate that firm benefits are nonmonotonic in the degree of time compression  diseconomies.

5 0
3 years ago
In the 2016 presidential campaign, republicans wanted to focus on stagnant wages, while democrats wanted to talk about declining
alexgriva [62]
The answer is selective exposure

6 0
3 years ago
Read 2 more answers
The J-curve effect that results from currency depreciation results is due to Group of answer choices exports and imports being t
11Alexandr11 [23.1K]

Answer:

the value of imports increasing by more than the value of exports at the time of devaluation.

Explanation:

J-curve effect means the starting depreciation effect based on the balance of trade that should be negative also when the imports and the exports adjusted on the long run with respect to the changes made in the prices so the net effect should be positive

So as per the given situation, the above should be the answer

7 0
3 years ago
What is a foreign country that is currently being impacted financially due to the Coronavirus
Westkost [7]

Answer:

Macau

Explanation:

First, we need to understand that all countries are impacted financially due to the corona virus. It's predicted that Corona Virus will cause a loss of around $2.7 trillion in Global Economy.

That being said, some countries are impacted more than the others.

Especially those who rely on tourism and hospitality as their main economy. Macau is probably the one that got the hardest hit. Not only this country is located near China (where the virus originally came from) , tourism and hospitality accounted for around 43% of Macau's economy. Basically half of its  economic activity shut down due to the virus.

6 0
3 years ago
Read 2 more answers
Other questions:
  • A space into which you can safely direct your vehicle with the lowest possible risk is referred to as your
    6·1 answer
  • Also for business class polling: why don't people like selena gomez, gigi hadid and taylor swift
    7·2 answers
  • How can capital budgeting tools assist in evaluating a manager who is responsible for retaining customers of a cellular telephon
    7·1 answer
  • wifty Corporation has 9,200 shares of common stock outstanding. It declares a $3 per share cash dividend on November 1 to stockh
    13·1 answer
  • Anton believes his company's overhead costs are driven (affected) by the number of machine hours because the production process
    15·1 answer
  • In a _______, the tenant pays not only the rent for occupancy, but also pays maintenance and operating expenses such as taxes, i
    5·1 answer
  • Shrimp Galore, a shrimp harvesting business in the Pacific Northwest, has a 30-year loan on its shrimp harvesting boat. The annu
    12·1 answer
  • Which one of these is a specific risk?
    14·1 answer
  • Define central bank.​
    10·1 answer
  • Question 7 Suppose that Jaxon Corporation has three products: Red, Black, and White. Red has the highest contribution margin per
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!