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serg [7]
3 years ago
9

Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000,

compute the net income under absorption costing.
a) $70,000
b) $113,000
c) $210,700
d) $183,000
e) $288,000
Business
1 answer:
Kobotan [32]3 years ago
3 0

Answer:

b) $113,000

Explanation:

For the computation of net income under absorption costing first we need to follow some steps which is shown below:-

variable overhead per unit = $105,000 ÷ 35,000

= $3 per unit

The Variable cost of production per unit

Particulars                       Amount

Direct material                  $19.00

Direct labor                       $21.00

Variable overhead           $3.00

Variable cost of production

per unit                              $43.00

Cost per unit of finished goods under absorption costing

Particulars                             Amount

Total direct material cost $665,000

($19 × 35000)

Total direct labor              $735,000

($21 × 35000)

Total variable overhead $105,000

Total fixed overhead       $175,000

Total                                 $1,680,000

Units in finished goods = Number of units produced - units sold

= 35,000 - 21,000

= 14,000

Cost of finished goods under variable costing

= Variable cost of production per unit × Number of units in finished goods

= $43 × 14,000

= $602,000

Cost of goods sold

= Production cost - Finished goods  cost

= $1,680,000 - $602,000

= $1,078,000

Income statement under absorption costing

Particulars                        Amount

Sales revenue                $1,491,000

($71 × 21,000)

Less: cost of goods sold -$1,078,000

Gross Profit                      $413,000

Less : operating expenses -$300,000

Net operating income          $113,000

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PB9.
Drupady [299]

Answer:

transferred out  = 1550 units

Explanation:

given data

beginning WIP inventory = 600 units

received = 1,500 units

end of month with process =  550 units

to find out

transferred out

solution

we get here transferred out by the given equation that is

Units in Work in process at the end of the month = Beginning WIP inventory + Units receive or started - transferred out   ..................1

put here value we will get

550 = 600 + 1500 - transferred out  

transferred out  = 1550 units

5 0
3 years ago
Teresa purchased a necklace for $100 in 1964. In 2014, Teresa gave the necklace to her granddaughter, Lindsey.
padilas [110]

Answer:

d)$1,100 long-term capital gain

Explanation:

Given the information from the question. We know that a long-term capital gain or loss comes from investment that was possessed for a year or longer. However in this case, since the necklace was a gift .Therefore, there were no capital gain in 2014. In 2016, Lindsey sold the necklace for $1200. Therefore, the capital gain on the necklace will calculated as $1200- $100 = $1100. Where the $100 is a cost purchase for the previous owner. Therefore, long-term capital gain is $1100 which is option D.

8 0
3 years ago
All interest rates in the economy are set by the federal reserve. true or false
aivan3 [116]

Answer:

False

Explanation:

Most interest rates in the economy are not set by federal reserve. For example, banks decide what interests to pay different kind of deposits and charge loans of different risks on their own (with consideration for competition and profitability).

What the Fed does is set important rates (discount rate and funds rate) that influence other interest rates in the economy.

6 0
3 years ago
Enrique is giving a presentation to convince his managers that offering yoga classes at work will improve productivity because i
Ilya [14]

Answer:

a) He will ask the audience to stand and do a simple yoga pose.

Explanation:

Base on the scenario been described in the question, we saw the Enrique is given a presentation to convince his managers that offering yoga classes at work will improve productivity because it will help employees clear their minds. The aspects of his presentation that shows he wants to include kinesthetic learners is , he asked the audience to stand up and do a simple yoga pose.

Kinesthetic learning is a learning style in which learning which involves the students doing physical activities, rather than watching demonstrations or listening to lectures.

3 0
3 years ago
Read 2 more answers
If Glass Inc. produces 80 window panes per day at the market price of $60 in a perfectly competitive market, what would happen t
Verdich [7]

Answer:

Price will not change

Explanation:

A perfectly competitive market is a market where there are many firms that produce and sell similar products, no barriers to entry and exist, all firms are price takers and none of the firms is big enough or has the power to influence the market or change the price in the market.

The implication is that a firm can decide to increase its output to any level in perfectly competitive market market, but this increased out can only be sold at the market price which it has no power to change.

Therefore, if Glass Inc. Glass Inc. increases production to 120 window panes from 80, the price will still remain at $60, every other thing remain constant.

I wish you the best.

8 0
3 years ago
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