Homework Answers
In absorption costing, fixed manufacturing cost is also considered as a product cost and thus the closing stock value includes the absorbed amount of Fixed Mfg. cost
In variable costing, entire fixed mfg. OH is charged to revenue and thus net income under variable costing will be lesser by the amount of fixed mfg. overhead absorbed in ending inventory.
| Net income as per Absorption Costing | 106760 |
| Net income as per variable Costing | 81000 |
| Higher income in absorption costing (A) | 25760 |
| This is the amount of Fixed Mfg. OH included in the closing stock | |
| Total Mfg. OH | 54060 |
| Units Produced | 10600 |
| Per Unit Mfg. OH (B) | 5.1 |
| Ending Inventory (Units) | 5050.98 |
| Ending Inventory (Units) Rounded Off | 5051 |
Thus the correct answer is inventory level will increase by 5051 units since the beginning inventory is Nil being the 1st year of operation
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Sevmd Help Save &E A company that produces a single product had a net operating income...
Croft Corporation produces a single product. Last year, the company had a net operating income of...
Croft Corporation produces a single product. Last year, the company had a net operating income of $96,860 using absorption costing and $82,300 using variable costing. The fixed manufacturing overhead cost was $13 per unit. There were no beginning inventories. If 23,800 units were produced last year, then sales last year were:
Croft Corporation produces a single product. Last year, the company had a net operating income of...
Croft Corporation produces a single product. Last year, the company had a net operating income of $160,000 using absorption costing and $149,000 using variable costing. The fixed manufacturing overhead cost was $10 per unit. There were no beginning inventories. If 43,000 units were produced last year, then sales last year were: 0 32,000 units O 41,900 units 0 54,000 units 0 40,000 units
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: $ 110 0 2,400 2,100 300 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense 41 $64,800 $ 8,400 The total gross margin for the month under absorption costing...
Bellue Inc. manufactures a single product. Variable costing net operating income was $84,700 last year and...
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Problem 7. Hanks Corporation produces a single product. Operating data for the company and its absorption...
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Help Save & Ex Saved Cain Inc. reports net income of $15,600. Its comparative balance sheet...
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CO D) Topple Company produces a single product. Operating data for the company and its absorption...
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(e) The net operating income (loss) under absorption costing is less than the net operating income...
(e)
The net operating income (loss) under absorption costing is less
than the net operating income (loss) under variable costing in Year
2 because (Select all that apply.):
3.
Make a note of the absorption costing net operating income
(loss) in Year 2.
At the end of Year 1, the company’s board of directors set a
target for Year 2 of net operating income of $70,000 under
absorption costing. If this target is met, a hefty bonus would...
(e) The net operating income (loss) under absorption costing is less than the net operating income...
(e) The net operating income (loss) under absorption costing is
less than the net operating income (loss) under variable costing in
Year 2 because: (You may select more than one answer.
Single-click the box with the question mark to produce a checkmark
for a correct answer and double click the box with the question
mark to empty the box for a wrong answer. Any boxes left with a
question mark will be automatically graded as
incorrect.)
Units were left over...
Help Save & Ex A company's income statement showed the following net income, $133,000 depreciation expense,...
Help Save & Ex A company's income statement showed the following net income, $133,000 depreciation expense, $39,500 and gain on sale of plant assets, $13,500. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,300; merchandise inventory increased $27.500, prepaid expenses increased $8,100; accounts payable increased $5300 Calculate the net cash provided or used by operating activities Multiple Choice $154 200 $140 000 $161,000 $156,200 $182 200. < Prev 32 of 36...
Croft Corporation produces a single product. Last year, the company had a net operating income of $160,000 using absorption costing and $149,000 using variable costing. The fixed manufacturing overhead cost was $10 per unit. There were no beginning inventories. If 43,000 units were produced last year, then sales last year were: 0 32,000 units O 41,900 units 0 54,000 units 0 40,000 units
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: $ 110 0 2,400 2,100 300 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense 41 $64,800 $ 8,400 The total gross margin for the month under absorption costing...
Problem 7. Hanks Corporation produces a single product. Operating data for the company and its absorption costing income statements for the last two years are presented below Units in beginning inventory Units produced Units sold Year Year 2 0 1,000 9,0009,000 8,000 10,000 YearYear 2 $80,000 $100,000 48,000 60,000 32,000 40,000 Selling and administrative expenses 28,000 30,000 S4,000 $10,000 Sales Cost of goods sold Gross margin Net operating income Variable manufacturing costs are $4 per unit. Fixed manufacturing overhead was...
Help Save & Ex Saved Cain Inc. reports net income of $15,600. Its comparative balance sheet shows the following changes: accounts receivable increased $6,600; inventory decreased $8,600: prepaid insurance decreased $1,600; accounts payable increased $3,600 and taxes payable decreased $2,600. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Changes in...
(e)
The net operating income (loss) under absorption costing is less
than the net operating income (loss) under variable costing in Year
2 because (Select all that apply.):
3.
Make a note of the absorption costing net operating income
(loss) in Year 2.
At the end of Year 1, the company’s board of directors set a
target for Year 2 of net operating income of $70,000 under
absorption costing. If this target is met, a hefty bonus would...
(e) The net operating income (loss) under absorption costing is
less than the net operating income (loss) under variable costing in
Year 2 because: (You may select more than one answer.
Single-click the box with the question mark to produce a checkmark
for a correct answer and double click the box with the question
mark to empty the box for a wrong answer. Any boxes left with a
question mark will be automatically graded as
incorrect.)
Units were left over...
Help Save & Ex A company's income statement showed the following net income, $133,000 depreciation expense, $39,500 and gain on sale of plant assets, $13,500. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,300; merchandise inventory increased $27.500, prepaid expenses increased $8,100; accounts payable increased $5300 Calculate the net cash provided or used by operating activities Multiple Choice $154 200 $140 000 $161,000 $156,200 $182 200. < Prev 32 of 36...
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