Loki Inc. manufactures and sells one product. The following information pertains to each of the company's...
Loki Inc. manufactures and sells one product. The following information pertains to each of the company's first two years of operations:
|
Selling price per unit |
$200 |
|
Variable costs per unit: |
|
| Manufacturing: | |
|
Direct materials |
$68 |
|
Direct labor |
$40 |
|
Variable manufacturing overhead |
$11 |
|
Variable selling and administrative expense |
$5 |
|
Fixed costs per year: |
|
|
Fixed manufacturing overhead |
$49,000 |
|
Selling and administrative expense |
$122,000 |
| Year | 1 | 2 |
| Production (units) | 5,000 | 4,700 |
| Sales (units) | 4,600 | 5,100 |
Q:) What is net operating income under absorption costing in Year 2? (Do not round intermediate calculations. Round the final answer to the nearest dollars.)
Homework Answers
|
Income Statement under Absorption Costing |
|
|
Sales Revenue (5100 x $200) |
$1020000 |
|
Less: Cost of sale* |
$660070 |
|
Gross margin |
$359930 |
|
Less: Fixed selling and Administrative expense |
$122000 |
|
Less: Variable selling and administrative expense (5100 x $5) |
$25500 |
|
Net Operating Income |
$21430 |
*Cost of sales = Cost per unit x Number of units sold
Cost per units = Fixed Manufacturing overhead + Variable manufacturing overhead
Variable manufacturing overhead = $68 + $40 + $11 = $119
Cost per units = $49000 + (4700 x $119) = $49000 + $559300 = $608300 / 4700 units = $129.4255
Cost of sales = $129.4255 x 5100 = $660070
Add Answer to:
Loki Inc. manufactures and sells one product. The following
information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $320,000 $90.000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 29 Direct labor $ 12 Variable manufacturing overhead Variable selling and administrative 4 $ 3 Fixed costs per year: $400,000 $100,000 Fixed manufacturing overhead Fixed selling and administrative expenses During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead $ 25 $ 16 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $90,000 $320,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 24 13 6 5 $ 320,000 $ 50,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 0000 0 $ $ 320,000 50,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit Manufacturing Direct materials Direct labor 14 Variable manufacturing overhead 3 Variable selling and administrative Fixed costs per year: 240,000 Fixed manufacturing overhead Fixed selling and administrative expenses 80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. its second year of operations, it p sold 50,000 selling of the product...
Haas Company manufactures and sells one product. The following information pertains to each of the company's...
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: A $ $ $ 22 14 5 A Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses w 3 A $270,000 210,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 29 Direct labor $ 17 Variable manufacturing overhead $ 3 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 400,000 Fixed selling and administrative expenses $ 50,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company's...
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 24 20 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 5 i $ 440,000 $ 200,000 During its first year of operations, Haas produced 40,000 units and sold 40,000 units. During its second year of operations, it produced 55,000...
Haas Company manufactures and sells one product. The following information pertains to each of the company's...
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 64 64 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 4 A $ 960,000 $ 240,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $320,000 $90.000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 29 Direct labor $ 12 Variable manufacturing overhead Variable selling and administrative 4 $ 3 Fixed costs per year: $400,000 $100,000 Fixed manufacturing overhead Fixed selling and administrative expenses During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead $ 25 $ 16 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $90,000 $320,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 24 13 6 5 $ 320,000 $ 50,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 0000 0 $ $ 320,000 50,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit Manufacturing Direct materials Direct labor 14 Variable manufacturing overhead 3 Variable selling and administrative Fixed costs per year: 240,000 Fixed manufacturing overhead Fixed selling and administrative expenses 80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. its second year of operations, it p sold 50,000 selling of the product...
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: A $ $ $ 22 14 5 A Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses w 3 A $270,000 210,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year...
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 24 20 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 5 i $ 440,000 $ 200,000 During its first year of operations, Haas produced 40,000 units and sold 40,000 units. During its second year of operations, it produced 55,000...
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 64 64 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 4 A $ 960,000 $ 240,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000...
Most questions answered within 3 hours.
-
Why are polymers not typically casted into products?
asked 8 minutes ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 25 minutes ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 13 minutes ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 16 minutes ago -
Along an aggregate supply curve, if the level of output is less
than the natural level...
asked 17 minutes ago -
By 2025, annual consumption in emerging markets will total $30
trillion and contribute more than ________...
asked 22 minutes ago -
At what point does reformation cease to be a viable option for
those who are oppressed...
asked 26 minutes ago -
Place letters corresponding to amounts in the proper order for
lightest to heaviest samples:
a) 2100...
asked 30 minutes ago -
Consider the multicore processor with 6 heterogeneous cores
labelled C1, C2, C3, C4, C5, and C6....
asked 33 minutes ago -
Document system components according to standards and procedures
(Implement and hand over system components) IT administrative
asked 33 minutes ago -
The college asked 700 students if they wanted a longer spring
break and 600 students said...
asked 33 minutes ago -
Determine the temperature (in Celsius) at which 1.00 mole of an
ideal gas will have a...
asked 57 minutes ago