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Anvisha [2.4K]
2 years ago
5

Front Company had net income of $82,500 based on variable costing. Beginning and ending inventories were 1,800 units and 3,200 u

nits, respectively. Assume the fixed overhead per unit was $8.40 for both the beginning and ending inventory. What is net income under absorption costing
Business
1 answer:
3241004551 [841]2 years ago
4 0

Answer:

$94,260.00

Explanation:

There is no doubt that the difference between net income under absorption costing and variable costing method lies in the treatment of fixed cost, under the former, each product is charged with fixed cost while total fixed cost is charged as a  period cost under the latter.

In essence, the fixed cost on ending inventory would have been expensed and deducted in arriving at net income under variable cost, in other words, we simply add to net income under variable costing the fixed cost attributable to an increase in ending inventory

income=$82,500+(3200-1800)*$8.40

net income=$94,260.00

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Sue’s bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction
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Answer:

Sue cannot afford to split the cost of a new TV as she only has $281.23 in her bank account after transactions. She has to contribute $302.22 and she doesn't have enough money.

Explanation:

Item                                                        Debit Credit  Balance

Bank balance before transactions                     899.83

Rent                                                 353.76            546.07

Video game                                           32.79            513.28

Bike maintenance                                   60.26           453.02

Jacket                                                   55.62           397.40

Rug                                                           80.40            317 .00

Night out                                           35.77            281.23

Sues bank balance after all the transactions is $281.23

6 0
3 years ago
Read 2 more answers
Rivian is considering an trucking assembly. The R1T assembly has an expected life of 5 years, will cost $95 million, and will pr
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Answer:

Rivian

The equivalent annual annuity is:

$28,053,400.

Explanation:

a) Data and Calculations:

R1T assembly investment cost = $95,000,000

Net cash flows = $37,000,000 per year

Cost of capital = 10%

Period of investment and annuity = 5 years

Annuity factor = 3.791

Present value of annuity = (3.791 * $37,000,000)/5

= 140,267,000/5

= $28,053,400

b) The net cash flows of $37 million per year will produce an annuity value of $28,053,400.  In comparison with the investment cost in the R1T assembly, the present value of the annuity is reasonable.

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2 years ago
When comparing and weighing alternatives during ethical decision-making in business, we should focus on the firm and its stakeho
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False, this could negatively impact our thinking and output for the situation, thus creating an exponential problem by lowering ones ethical decision making skills.
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2 years ago
If W. Edwards Deming was your management consultant, he would emphasize
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Answer:

Letter A. <u>Quality through constant innovation and quality assurance training.</u>

Explanation:

Alternative A is correct, as W. Edwards Deming was a pioneer scholar in the application of organizational quality management.

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  • PLAN:  define objectives, methods and resources.
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Continuous improvement can be achieved through the correct and targeted use of the PDCA cycle towards organizational objectives. For Deming, without continuous improvement, there is no survival of the organization in the market, so he argues that continuous improvement must be implemented in all phases of the project, to achieve the benefits of continuous improvement of processes, increased productivity and reduced costs.

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3 years ago
July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated J
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Answer:

Journal Entries are as below

Directive or Autocratic Decision Making:

Managers who embed such style assess few alternatives and consider limited information while taking any decision. They are intuitive and impulsive, do not find it important to consult with others or seek information in any form and use their cognitive process and idea while taking decisions.

BLINK COMPANY    

JOURNAL    

PERPETUAL INVETORY SYSTEM [AMOUNT IN $]    

   

DATE PARTICULARS     INVOICE DATE DR. CR.

Jul-01 PURCHASE A/C     Jul-01  6,000  

1/15,N/30  PAYABLE A/C {BODEN CO.}      6,000

Jul-02 A/C RECIEVABLE {CREEK CO.}   Jul-02  900  

                                      SALES      900

2/10,N/60    

COST OF GOODS SOLD      500  

   INVENTORY        500

Jul-03 CARRIAGE INWARDS A/C   Jul-01  125  

                                       CASH A/C      125

Jul-08 CASH A/C       1,700  

                                        SALES A/C     1,700

COST OF GOODS SOLD      1,300  

                                        INVENTORY     1,300

Jul-09 PURCHASE A/C     Jul-09  2,200  

                                        PAYABLE A/C {LEIGHT CO.}   2,200

2/15,N/60    

Jul-11 PAYABLE A/C {LEIGHT CO.}   Jul-09  200  

                                         INVENTORY     200

Jul-12 BANK A/C     Jul-02  882  

DISCOUNT ALLOWED      18  

                                          A/C RECIEVABLE {CREEK CO.}   900

Jul-16 PAYABLE A/C {BODEN CO.}   Jul-01  6,000  

                                           BANK A/C     5,940

                                           DISCOUNT RECEIVED    60

Jul-19 A/C REVIEVABLE {ART CO.}     1,200  

                                            SALES      1,200

2/15,N/60    

COST OF GOODS SOLD      800  

                                             INVENTORY     800

Jul-21 SALES RETURN A/C    Jul-19  200  

                                             A/C RECIEVABLE {ART CO.}   200

INVENTORY       134  

                                             COST OF GOOD SOLD    134

Jul-24 PAYABLE A/C {LEIGHT CO.}     2,000  

                                              BANK A/C      1,960

                                              DISCOUNT RICEIVED    40

Jul-30 BANK A/C     Jul-19  980  

DISCOUNT ALLOWED      20  

                                               A/C RECIEVABLE {ART CO.}   1,000

Jul-31 A/C RECIEVABLE {CREEK CO.}   Jul-31  7,000  

                                                SALES     7,000

2/16,N/60    

COST OF GOODS SOLD      4,800  

                                                 INVENTORY     4,800

Download xlsx
3 0
3 years ago
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