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2 years ago

Period costs are always expensed on the income statement in the period in which ______.

Business

1 answer:

jenyasd209 [6]2 years ago

7 0

Explanation:

Period costs are always expensed on the income statement in the period in which: they are incurred.

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Head-First Company plans to sell 5,800 bicycle helmets at $76 each in the coming year. Unit variable cost is $44 (includes direc

Romashka [77]

Answer:

1. 4,350 helmets

Explanation:

1. The computation of the number of helmets is shown below:

= (Total fixed cost + operating income) ÷ (Contribution margin per unit)

where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

= $76 - $44

= $32

So, it would be

= ($49,600 + $89,600) ÷ ($32)

= ($139,200) ÷ ($32)

= 4,350 helmets

2. The contribution margin income statement is presented below:

Sales (4,350 × $76) $330,600

Less: Variable cost (4,350 × $44) ($191,400)

Contribution margin $139,200

Less: Total Fixed cost ($49,600)

Operating income $89,600

8 0

3 years ago

A differentiator will always benefit when products have become commoditized. True or False

Savatey [412]

Answer:

false

Explanation:

a differentiator will always benefit when products have become commoditized

8 0

2 years ago

ABC Company’s budgeted sales for June, July, and August are 14,800, 18,800, and 16,800 units, respectively. ABC requires 30% of

aleksandr82 [10.1K]

Answer:

The number of units to be produced in June and July is 16,000 units and $18,200 respectively

Explanation:

The computations are shown below:

Number of units produced in June

= Sale units + ending inventory units - beginning inventory units

where,

Sale units is 14,800 units

Ending inventory units = 18,800 units × 30% = 5,640 units

Beginning inventory units = 4,440 units

Now put these units to the above formula

So, the units would equal to

= 14,800 units + 5,640 units - 4,440 units

= 16,000 units

Number of units produced in June

= Sale units + ending inventory units - beginning inventory units

where,

Sale units is 18,800

Ending inventory units = 16,800 units × 30% = 5,040 units

Beginning inventory units = 18,800 units × 30% = 5,640 units

Now put these units to the above formula

So, the units would equal to

= 18,800 units + 5,040 units - 5,640 units

= 18,200 units

5 0

3 years ago

The following inventory was available for sale during the year for Dolphin Tools: Beginning inventory 10 units at $120 First pur

vaieri [72.5K]

Answer: $4,950

Explanation:

If the company is using the First In First Out method for Inventory valuation then the earlier inventory is sold off first which would mean that the inventory at year end will be the more recent inventory.

The 25 units at the end of the year will be the most recent units purchased and so will be;

20 units from the third purchase

5 units from the 2nd purchase

Inventory value = (20 * 195) + ( 5 * 210)

= $4,950

<em>The options are not for this question. </em>

8 0

3 years ago

Prepare journal entries to record the following transactions involving the short-term securities investments of Natura Co., all

Bingel [31]

Explanation:

The journal entry is shown below;

Short term investment A/c Dr $156,000

To Cash $156,000

(Being the cash is paid to purchase the short term investment)

For recording this transaction we debited the short term investment and credited the cash as cash it is outflow and at the same time it increases the asset so it would be debited

4 0

3 years ago