Payment received in advance for services is a/an

ncome Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engine

Mnenie [13.5K]

Answer:

Income statement according to the absorption costing

Sales 2,600,000

Less Cost of Goods Sold

Opening Stock 0

Add Cost of Goods Manufactured

Direct materials 1,218,000

Direct labor 522,000

Variable factory overhead 87,000

Fixed factory overhead 130,500

Less Closing Stock (1,957,500/4,350)×350 (157,500) 1,800,000

Gross Profit 800,000

Less Period Costs :

Selling and administrative expenses:

Variable selling and administrative expenses (60,000)

Fixed selling and administrative expenses (25,000)

Net Income 715,000

Explanation:

Product/Manufacturing Cost - Absorption Costing = Direct Materials + Direct Labor + Variable Overheads + Fixed Overheads

Period Cost - Absorption Costing = All Non - Manufacturing Costs

7 0

3 years ago

A disadvantage of corporations is that shareholders have to pay on profits.

olga_2 [115]

Answer:

taxes

Explanation:

just took the test

4 0

3 years ago

The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. The closer w

qaws [65]

Answer:

The correct answer is False.

Explanation:

The amortization operation consists of regularly distributing the repayment of the principal (C0), together with the interest accrued throughout the life of the loan. The periodic payments made by the borrower are therefore intended to reimburse, extinguish or amortize the initial capital. This justifies the name of the depreciation transaction and the depreciation terms that are usually assigned to these payments.

8 0

3 years ago

An employee has gross earnings of $1,200 and withholdings of $91.80 for social security and medicare taxes and $120 for income t

satela [25.4K]

Given the following parameters:

The employer pays the employee (gross earnings) – $1,200

The employer pays for social security and medicare taxes – $91.80

The employer pays for the Federal Unemployment Tax Act (FUTA) – $9.60

The employer pays for the State Unemployment Tax Act (SUTA) – $64.80

The total cost of this employee to the employer is the summation of all these costs
1,200 + 91.80 + 9.60 + 64.80 = $1366.20

3 0

3 years ago

Ruth, a cashier at a private bank, strongly believes that no matter how much effort she puts in or how many hours she works over

Citrus2011 [14]

Answer:

Ruth, a cashier at a private bank, strongly believes that no matter how much effort she puts in or how many hours she works overtime, she will not be offered a promotion in the next 10 years. In this scenario, Ruth's beliefs are in accordance with the expectancy theory.

6 0

4 years ago