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
Amiraneli [1.4K]
3 years ago
10

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $ 128 Units in beginning inventory 0 Units produced 9,150 Units sold 8,750 Units in ending inventory 400 Variable costs per unit: Direct materials $ 22 Direct labor $ 64 Variable manufacturing overhead $ 10 Variable selling and administrative expense $ 14 Fixed costs: Fixed manufacturing overhead $ 137,250 Fixed selling and administrative expense $ 9,200 What is the net operating income for the month under absorption costing?
Business
1 answer:
Masteriza [31]3 years ago
4 0

Answer:

Farris Corporation

The net operating income for the month under absorption costing is:

= $17,050.

Explanation:

a) Data and Calculations:

Selling price $ 128

Units in beginning inventory 0

Units produced 9,150

Units sold         8,750

Units in ending inventory 400

Variable costs per unit:

Direct materials $ 22

Direct labor $ 64

Variable manufacturing overhead $ 10

Variable selling and administrative expense $ 14

Fixed costs:

Fixed manufacturing overhead $ 137,250

Fixed selling and administrative expense $ 9,200

Direct materials                               $ 22

Direct labor                                     $ 64

Variable manufacturing overhead $ 10

Variable costs per unit                   $ 96 * 9,150 = $878,400

Fixed manufacturing overhead                             $ 137,250

Total production cost                                           $1,015,650

Product cost per unit = $111

Cost of goods sold = $971,250 ($111 * 8,750)

Period costs:

Variable selling and administrative expense $ 14 * 8,750 = $122,500

Fixed selling and administrative expense $ 9,200

Income Statement under absorption costing

Sales revenue ($128 * 8,750) =    $1,120,000

Cost of goods sold                            971,250

Gross profit                                      $148,750

Period costs:

Variable selling and administrative 122,500

Fixed selling and administrative         9,200

Total period costs                           $131,700

Net operating income                      $17,050

You might be interested in
Mortgage loan originator Carol is in a hurry to leave on her vacation, and she leaves a customer's file that contains his Social
WARRIOR [948]

Answer: Fair and Accurate Credit Transaction Act

Explanation:

From the question, we are informed that Mortgage loan originator Carol is in a hurry to leave on her vacation, and she leaves a customer's file that contains his Social Security number and bank account numbers on her desk.

Carol is violating the Fair and Accurate Credit Transaction Act. The Act was put in place to detect and also hinder Identity theft.

7 0
3 years ago
Suppose that an economy has 9 million people working full-time. it also has 1 million people who are actively seeking work but c
Luda [366]
The unemployment rate will be of 10% of the economy. We can only have in mind the Million people who are actively seeking work in here which is in itself what is taken into account when talking about economy's unemployment rate. Remember also that the unemployment rate that is consistent with full employment known as the natural rate of unemployment. 
4 0
3 years ago
How can your sense of social structure affect your work with patients
Evgen [1.6K]
It can make them feel uncomforable and feel like you don't like them or make them feel a certain way that is not usually good
3 0
3 years ago
Look at the map showing the European Union (EU) and its free-trade agreement (FTA) countries.
shepuryov [24]

The actual correct answer is: <u>The European Union's free-trade agreements include agreements with both developed and developing nations.</u>

8 0
3 years ago
Read 2 more answers
Defend or critique the following statement, using supporting evidence: “Getting to work early on your first day at a new job is
frez [133]

Answer:

Dressing well, being prepared, having a positive attitude, arriving early for work and asking good questions.

Explanation:

5 0
3 years ago
Other questions:
  • For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a
    7·1 answer
  • When supply and demand meet at the equilibrium point, then prices in the market will?
    8·2 answers
  • Which of the following statements about renting &amp; owning is CORRECT?
    13·2 answers
  • In an economy without international trade, investment must equal ______ saving.
    10·2 answers
  • Sun​ Industries' budgeted sales and direct materials purchases are as​ follows: Budgeted Sales Budgeted DM Purchases January ​$2
    12·1 answer
  • A new aluminum part production facility opened for business, selling products for $9,000 each. The rent on the facility building
    6·1 answer
  • When a firm shifts from transactional selling to a value-added and relationship approach, a number of changes have to take place
    7·1 answer
  • The present value of $40,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)
    15·1 answer
  • Cold, Inc., reported a $100,000 total tax expense for financial statement purposes in year 1. This total expense consisted of $1
    11·1 answer
  • Willing to give a lot of points
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!