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
kotykmax [81]
3 years ago
5

Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this y

ear follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 40 per unit Fixed $ 6,600,000 (per year) Selling and administrative costs for the year Variable $ 725,000 Fixed $ 4,250,000 Production and sales for the year Units produced 110,000 units Units sold 80,000 units Sales price per unit $ 350 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing
Business
1 answer:
kakasveta [241]3 years ago
5 0

Answer:

Results are below.

Explanation:

<u>Absorption vs Variable costing method</u>

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

<u>1) First, we need to calculate the total unitary variable cost:</u>

Unitary production variable cost= 35 + 55 + 40= $130

Selling and administrative costs for the year Variable $ 725,000

Unitary total variable cost= 130 + (725,000 / 80,000)= $139.06

<u>Now, the variable income statement:</u>

Sales= 80,000*350= 28,000,000

Total variable cost= (80,000*139.06)=(11,124,800)

Total contribution margin= 16,875,200

Fixed overhead= (6,600,000)

Fixed Selling and administrative costs = (4,250,000)

Net operating income= 6,025,200

<u>2) First, we need to calculate the unitary production cost:</u>

Unitary production cost= 130 + (6,600,000/110,000)= $190

<u>Now, the absorption costing income statement:</u>

<u />

Sales= 28,000,000

COGS= 80,000*190= (15,200,000)

Gross profit= 12,800,000

Total Selling and administrative costs= (725,000 + 4,250,000)= (4,975,000)

Net operating income= 7,825,000

You might be interested in
According to Miles and Snow, a company that operates in at least two different product-market areas in which one product is stab
Kruka [31]
It is B) Reactors
Because they operate
5 0
3 years ago
Read 2 more answers
Kansamb Residential School, a school run by Christian missionaries, does not recruit teaching staff who practice other religions
ICE Princess25 [194]

Answer:

d. disparate treatment

Explanation:

Based on the information provided within the question it seems that this scenario best illustrates disparate treatment. This refers to discriminating a potential employee based on any protected characteristic (age, disability, gender reassignment, race, religion or belief, sex, sexual orientation, marriage) even though they are just as suited or qualified as any other candidate or employee.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
Researchers have raised questions absout poll results concerning support for penalty, the death such support is not absolute but
vovikov84 [41]

Answer:

a. the alternative punishments that are available  

Explanation:

Alternative punishments generally tend to change the support patterns with more softline polling members opting for alternative punishments rather than death penalty.

8 0
3 years ago
How is the spending multiplier effect related to demand-side economics?
Bess [88]
Because of the Spending multiplier effect, small investment changes will create larger changes, and macroeconomic policy will undergo some improvements and expenditures

Hope this Helps :D     
8 0
3 years ago
The yield on a one-year bond is currently 3% and the expected yield on one-year bonds for the next two years is 5% and 4%. If th
sveticcg [70]

Answer:

5.75%

Explanation:

The computation of the  yield on a bond with three years to maturity is shown below:

Given that

Yield on a one-year bond is 3%

The expected yield on one-year bonds for the next two years is 5% and 4%

And, the liquidity premium is 1.75%

So, the yield on a bond with three years to maturity is

= (3% + 5% + 4%) ÷ 3 years + 1.75%

= 4% + 1.75%

= 5.75%

4 0
3 years ago
Other questions:
  • if consumers to demand in a quantity of 100 at $4 per item and the suppliers Supply 200 of the item at $4 than a surplus is crea
    10·1 answer
  • Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producin
    12·1 answer
  • Fred, a department manager, is attending the monthly budget planning meeting, where all the department managers report on their
    5·1 answer
  • A poultry farmer is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the eggs he wants to sell. The fixed
    11·1 answer
  • If overapplied or underapplied overhead is material, it should be disposed of by allocating it to: Select one: a. Cost of goods
    8·1 answer
  • Which response might be an answer to a fundamental question of economics of how much should be produced ?
    11·1 answer
  • Those dealing with appliance
    12·1 answer
  • A company reported the following in its recent balance sheet:
    13·1 answer
  • What are the three legal forms of business organization? What are the advantages and disadvantages of each one
    6·1 answer
  • KLA Company provided the following data for 2018: sales, $800,000; beginning inventory, $40,000; ending inventory, $45,000; and
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!