Question

Required information [The following information applies to the questions displayed below) Advanced Company reports the following information for the current year. All beginning inventory amounts equaled 50 this year Units produced this year Units sold this year 31,000 units 18,600 units 15 per unit 17 per unit $ 5 Tier 3155,000 in total Given Advanced Company's data, and the knowledge that the product is sold for $62 per unit and operating expenses are $260,000, compute the net income under variable costing. Multiple Choice 562.000 O $82200

Answer 1

Answey's $87,200 Explanation: - Advanced company variable costing Income statement Amount ($) Amount ($) sales $1,153,200 Less: variable costs operating Expenses $260.000 Direct Material $465,000 : : Direct labor $527,000 variable overhead $ 93,000 Total veriable cost available $1,345,000 Less: Ending Finished $(434,000) goods Inventory - Total variable costs $1911,000) contribution Margin $242,200 Less Fixed expenses Fixed overhead. $ 155,000 Total Eisced costs $(155,000) Net Income Class). $87,200

Dsales = units sold this year y sale price per unit = 18,600x$62 => $1,153, 200 2) Direct Materials = units produced & direct mat per unit = 31,000 $15 => $465,000 3) Direct labore units produced & Direct labor per unit. 231,000 x$17:>$527,000 u varlable overhead = onits .x variable overhead Producea" - per unit = 31,000+$3 => $93,000 5) Ending finished -lunits produced -Units sold) goods Inventory xl Direct Material per unit 4 Direct labor perunitat variable overhead per unit) = 131,000 -18,600) +($15+$17+$3) = 12,400 x $35 =8434,000

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