If you could clearly write explanations to
A,B,C that would be great thank you.
Homework Answers
- Units Produced Equals Units Sold: There is No ending Inventory in this situation and therefore the Net Income under Absorption costing and the Net Income under variable costing would be the same. It has the same effect on the net income in both absorption costing and variable costing i.e whether the fixed overhead is treated as a product cost under absorption costing or expensed out under variable costing.
- Units Produced Exceed Units Sold: In this case since the Production in the period exceeds the sales, there is an ending inventory of unsold inventory. In this case the net operating income under absorption costing is higher than the net operating income under variable costing. This is because fixed manufacturing overhead is a part of the ending inventory under absorption costing system. Since the ending inventory absorbs an amount of fixed manufacturing overhead and thereby decreases the burden that the fixed costs have in the current period. This has the effect of transferring a part of the fixed cost that relates to the current period by transferring that part of the fixed cost to the next period.Under variable costing, the fixed manufacturing overhead cost is not considered as a part of in the product cost but charged to the income statement of the current relevant period completely. That is to say that no part of the fixed cost is considered as a part of the closing or ending inventory.
- Units Produced are less than Units Sold: In this situation there is no Ending Inventory as there is unsatisfied demand at the end of the current period. Therefore the Net Income under Absorption costing and the Net Income under variable costing would be the same.
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If you could clearly write explanations to
A,B,C that would be great thank you.
How will...
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How does contribution margin differ from gross margin? VIRUS How will net income under variable costing compare to net income under absorption costing in the following three situations? Explain briefly the cause of any differences. (a) Units produced equal units sold (b) Units produced exceed units sold (c) Units produced are less than units sold
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If you could please explain how you solved this problem it would help me understand. Thank...
If you could please explain how you solved this problem it would
help me understand. Thank you!
Net Income Planning Selected operating data for Oakbrook Company in four independent situations are shown below. Fill in the blanks for each independent situation. D Sales $325,000 $130,000 24 c. $ e. f. $ Variable expense $101,000 $4 a. g. b. $62,000 $48,200 $44,500 Fixed expense Net income (loss) before tax $15,000 $15,000 $28,800 $(5,500) Units sold 30,000 d. Unit contribution margin $5.20...
Also could if you could explain how kinetics and radioactivity relate, that would be great. thank...
Also could if you could explain how kinetics and radioactivity
relate, that would be great. thank you
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ssuming the number of units sold and produced are the same (Sales = Production), which of the Following statements is TRUE when comparing net income using absorption and variable costing. a. Absorption costing will yield a higher net income. b. Variable costing will yield a higher net income. c. Net income will be the same under both methods. d. Variable costing will have higher sales revenue. Assuming that the number of units produced is greater than the number of units...
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If you could please explain how you solved this problem it would
help me understand. Thank you!
Net Income Planning Selected operating data for Oakbrook Company in four independent situations are shown below. Fill in the blanks for each independent situation. D Sales $325,000 $130,000 24 c. $ e. f. $ Variable expense $101,000 $4 a. g. b. $62,000 $48,200 $44,500 Fixed expense Net income (loss) before tax $15,000 $15,000 $28,800 $(5,500) Units sold 30,000 d. Unit contribution margin $5.20...
Also could if you could explain how kinetics and radioactivity
relate, that would be great. thank you
6. Calculate the rate constant for the decay of C-14 (in units of 1/year).
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