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statuscvo [17]
2 years ago
10

Fleet, Inc. manufactured 700 units of Product A, a new product, in 20Xl. Product Xs variable and fixed manufacturing costs per u

nit were $6.00 and $2.00, respectively. The inventory of Product A on December 31, 20Xl consisted of 100 units. There was no inventory of Product A on January 1, 20Xl. Required: What would be the change in the dollar amount of inventory on December 31, 20Xl if the variable costing method was used instead of the absorption costing method
Business
1 answer:
Ulleksa [173]2 years ago
3 0

Answer:

The change in the dollar amount of inventory is $200 due to change in the inventory costing method.

Explanation:

The variable cost per unit is $6.00 while the fixed cost per unit is $2.00

Variable cost per unit = $6.00

Absorption cost pet units = $8.00

Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory

Total absorption cost = $8.00 × 100 = $800

Total cost under variable cost = Variable cost per unit × number of units in ending inventory

Total variable cost = $6.00 × 100 = $600

Change in cost = Total absorption cost - Total variable cost

Change in cost = $800 - $600 = $200

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Answer:

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a) Current Portion of Note Payable:

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b) Long-term Portion of Note Payable:

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Explanation:

Data and Calculations:

Date of Note Payable = November 1, 2017

Period = 3 years

Interest rate = 5%

Terms of payment:

Fixed principal payments = $2,000

Payment dates = May 1 and November 1

Each year's principal repayment = $4,000 ($2,000 x 2)

From November 1, 2017 to October 31, 2018 = $4,000

At October 31, 2018, Payment made = $2,000 on May 1

Remaining Note payable = $10,000 ($12,000 - $2,000)

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Long-term Portion = $6,000

b) The current portion of $4,000 will be payable on November 1, 2018 and May 1, 2019.  The current portion represents the short-term portion of the note payable, which is the portion that will be settled within a 12-months' period.  Since Cookie & Coffee Creations Inc. had already paid $2,000 on May 1, 2018, the long-term portion will only remain $6,000 ($12,000 - $2,000 - $4,000), which is the difference between the total note payable, the portion paid on May 1, 2018, and the current portion of $4,000 that will be payable within one year.

5 0
3 years ago
Teleology is a philosophy that states that _______.
aleksley [76]

Answer:

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6 0
3 years ago
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1 year ago
Kant Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying valu
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Answer and Explanation:

The Journal entry is shown below:-

Bonds payable Dr, $500,000

Loss on retirement of bonds Dr, $28,750  

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8 0
3 years ago
What is the correct order that the four parts of a cover letter should appear in? a. Introduction, Heading, Argument, Closing b.
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