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
Stels [109]
2 years ago
15

Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its bluebe

rry crop was small. The following data have been gathered for the summer quarter of last year: Beginning inventory (cases) 0 Cases produced 8,000 Cases sold 7,000 Sales price per case $ 115 Direct materials per case $ 25 Direct labor per case $ 40 Variable manufacturing overhead per case $ 10 Total fixed manufacturing overhead $ 192,000 Variable selling and administrative cost per case $ 2 Fixed selling and administrative cost $ 38,000 Functional Income Statement Contribution Income Statement Ending Inventory Analysis (a) Prepare a functional income statement for the quarter using absorption costing. (Round answers to the nearest dollar. Do not use negative signs with your answers, EXCEPT if you calculate a net loss.) RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter (Last Year) Sales Answer 805,000 Cost of goods sold: Variable costs Answer 616,000 Fixed costs Answer 192,000 Goods available Answer 808,000 Ending inventory Answer 99,000 Answer 693,000 Gross profit Answer 112,000 Operating expenses: Variable selling and administrative Answer 14,000 Fixed selling and administrative Answer 38,000 Answer 52,000 Net income (loss) Answer 60,000
Business
1 answer:
Morgarella [4.7K]2 years ago
7 0

Answer:

Red Arrow Blueberries

RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter (Last Year)

Sales                                           $805,000

Cost of goods sold:

Variable costs              600,000

Fixed costs                   192,000

Goods available          792,000

Ending inventory          99,000   693,000

Gross profit                                    112,000

Operating expenses:

Variable selling & administrative  14,000

Fixed selling and administrative  38,000

Total operating expenses           52,000

Net income (loss)                        60,000

Explanation:

a) Data and Calculations:

Beginning inventory (cases)   0

Cases produced              8,000

Cases sold                       7,000

Ending inventory (cases) 1,000 (8,000 - 7,000)

Sales price per case $ 115

Direct materials per case $ 25

Direct labor per case $ 40

Variable manufacturing overhead per case $ 10

Total fixed manufacturing overhead $ 192,000

Variable selling and administrative cost per case $ 2

Fixed selling and administrative cost $ 38,000

Variable costs:

Direct materials per case         $ 25

Direct labor per case                $ 40

Variable manufacturing

 overhead per case                 $ 10

Total variable cost per case    $ 75

Total variable costs = $600,000 ($75 * 8,000)

Ending cost of

You might be interested in
A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
Maurinko [17]

Answer:

a. appreciation of the U.S. dollar and depreciation of the foreign currency.

Explanation:

When the supply of us dollars fall, demand for US dollars would be greeter than the supply, the value of the US dollar would rise.

I hope my answer helps you

8 0
2 years ago
Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A
notsponge [240]

Answer:

$100 in bank A

$900 in bank B

Explanation:

Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.

  • bank A = $1,000 x 10% = $100
  • bank B = $1,000 x 90% = $900

If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.

5 0
3 years ago
A company receives $290, of which $15 is for sales tax. The journal entry to record the sale would include a
Inga [223]

Answer:

Explanation:

Cash.         290

     Revenue.             275

     Sales tax payable.  15

5 0
2 years ago
Park Company reports interest expense of $145,000 and income before interest expense and income taxes of $1,885,000. (1) Compute
KATRIN_1 [288]

Answer:

(1) Park's times interest earned is 13.

(2) Park is in a BETTER position than its competitor to make interest payments if the economy turns bad.

Explanation:

(1) Compute its times interest earned.

The times interest earned, also known as the interest coverage ratio, is a coverage ratio that calculates the proportionate amount of income that can be used to cover future interest expenses.

The times interest earned can be computed as follows:

Times interest earned = Income before interest expense and income taxes / Interest expense = $1,885,000 / $145,000 = 13

Therefore, Park's times interest earned is 13.

(2) Park's competitor's times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest payments if the economy turns bad.

Because the ratio reveals how many times a company could pay interest with its pre-tax income, greater ratios are clearly better than lower ratios.

Since Park’s times interest earned of 13 is greater than its competitor’s times interest earned of 4, it therefore implies that Park is in a BETTER position than its competitor to make interest payments if the economy turns bad.

8 0
2 years ago
What percentage of business in America are home businesses?<br> A. 10%<br> B.33%<br> C.52%<br> D.67%
NARA [144]

the answwer is ( 67 % )

5 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following statements exemplifies the importance of managerial skills?(A) Technical skills are most important after
    15·1 answer
  • Which sociological perspective would view sports as a form of big business in which profits are more important than the health a
    10·1 answer
  • Cost of Units Transferred Out and Ending Work in ProcessThe costs per equivalent unit of direct materials and conversion in the
    7·1 answer
  • Custom Foot operates six retail locations. At first glance, none looks any different from your basic old-fashioned shoe store, b
    14·1 answer
  • Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $16; direct lab
    10·1 answer
  • The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4
    7·1 answer
  • Consider a bond (with par value = $1,000) paying a coupon rate of 9% per year semiannually when the market interest rate is only
    5·1 answer
  • Question 12 (3.333333333 points)
    11·2 answers
  • Suppose Ruston Company had the following results related to cash flows for 2020: Net Income of $9,100,000 Adjustments from Opera
    9·1 answer
  • If x is a normal good, an increase in income will shift the.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!