Answer:
There will be a difference in the income .
Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.
Variable costing income will be higher as it does not transfer the fixed costs to the ending inventory.
The difference will be of $ 104000
Explanation:
Increase in units 8000
Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00
Total Unit Costs $ 32.00 $ 13.00
The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under absorption costing. This is because the all fixed costs will be treated as period cost rather than product costs.
In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing because the fixed costs will not be allocated to products.
Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.
B. Serena should focus on a certain amount and track her spending
Answer:
$118,000
Explanation:
We know the purchase price of land = $100,000
Also any kind of brokerage or commission is added to such cost as it is part of acquisition and one time expense, thus capital in nature.
Thus, $8,000 paid as brokerage will be added.
Also the one time expense in the capital nature being the demolishing expense will be added to cost.
Thus, net cost of land = $100,000 + $8,000 + $10,000 = $118,000
Some of the salvage sold results in an income for the company, and that shall form part of income statement, and has nothing to do with cost of land.
Thus, net historical cost = $118,000
Answer:
(A) $1,000
Explanation:
Health Savings Account (HSA) is an account that offers tax advantages to those individuals who are covered under high deductible health plans(HDHPs).
Both Employers and Employees make contributions to such an account.
Under the laws, the maximum contribution allowable is $3400 by both employers and employees.
Such contributions can be used for qualified medical expenses.
Individuals who are above 55 years of age can contribute an additional $1000 per person per year as per the law which can be of much help to early retirees.
Hence, Ruth is allowed to make an additional contribution of $1,000.
A student loan is an award I think
