Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and...
| Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and sales volume: |
| • New delivery equipment cost, $170,000. |
| • Annual depreciation expense on the new delivery equipment, $17,000. |
| • Old delivery equipment cost, $133,000. |
| • Annual depreciation expense on the old delivery equipment, $13,300. |
| • Annual decrease in utilities cost, $1,400. |
| • Annual increase in advertising costs, $6,800. |
| • Annual increase in sales, $81,000. |
| • Annual increase in cost of goods sold, $21,000. |
| • Annual increase in sales commissions, $1,500. |
| • Annual increase in shipping costs, $400. |
| How much is the differential annual net operating income? |
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Lisbon Corporation is analyzing the following costs with
respect to its decision to expand production and...
Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and...
Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and sales volume: • New delivery equipment cost, $170,000. • Annual depreciation expense on the new delivery equipment, $17,000. • Old delivery equipment cost, $133,000. • Annual depreciation expense on the old delivery equipment, $13,300. • Annual decrease in utilities cost, $1,400. • Annual increase in advertising costs, $6,800. • Annual increase in sales, $81,000. • Annual increase in cost of goods sold, $21,000. •...
Differential Annual Net Operating Income
Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and sales volume: • New delivery equipment cost, $170,000. • Annual depreciation expense on the new delivery equipment, $17,000. • Old delivery equipment cost, $133,000. • Annual depreciation expense on the old delivery equipment, $13,300. • Annual decrease in utilities cost, $1,400. • Annual increase in advertising costs, $6,800. • Annual increase in sales, $81,000. • Annual increase in cost of goods sold, $21,000. • Annual increase in sales commissions, $1,500. • Annual increase in...
Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising...
Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 50,000 Factory supplies used 13,000 Salaries paid to sales clerks (a) Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs. Bicycle components Depreciation on plant Property taxes on store Labor costs...
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $122,200 Advertising...
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $122,200 Advertising expense $49,900 Depreciation on plant 69,200 Property taxes on plant 17,600 Property taxes on store 8,590 Delivery expense 28,300 Labor costs of assembly-line workers 113,100 Sales commissions 44,400 Factory supplies used 34,000 Salaries paid to sales clerks 51,300 Work in process inventory was $13,300 at January 1 and $17,200 at December 31. Finished goods inventory was $68,800 at January 1 and $47,900 at December...
Question 20 Glavine Corporation incurred the following costs while manufacturing its product. Materials used in product...
Question 20 Glavine Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $125,000 60,000 7,500 110,000 23,000 45,000 19,000 21,000 35,000 50,000 Work-in-process inventory was $27,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December...
Practice Question 19 Pharmco incurred the following costs while manufacturing its product: Materials used in production,...
Practice Question 19 Pharmco incurred the following costs while manufacturing its product: Materials used in production, $120,000; factory depreciation, $60,000; property taxes on the administrative offices, $12,000; labor costs of assembly-line workers, $95,000; factory supplies used, $8,000; advertising expense, $13,000; property taxes on the factory, $20,000; delivery expense, $23,000; salaries of the sales staff, $53,000; and sales commissions, $17,000. The total product costs for Pharmco are O $303,000 O $315,000. O $391,000. O $421,000
Compute cost of goods manufactured. Glavine Corporation incurred the following costs while manufacturing its product. Materials...
Compute cost of goods manufactured.
Glavine Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $125,000 60,000 7,500 110,000 23,000 45,000 19,000 21,000 35,000 50,000 Work-in-process inventory was $27,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and...
Compute cost of goods E14.8 (LO 3) Lopez Corporation incurred the following costs while manufacturing its...
Compute cost of goods E14.8 (LO 3) Lopez Corporation incurred the following costs while manufacturing its product. manufactured and sold. Materials used in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods...
Dungan Corporation is evaluating a proposal to purchase a new drill press to replace a less...
Dungan Corporation is evaluating a proposal to purchase a new drill press to replace a less efficient machine presently in use. The cost of the new equipment at time 0, including delivery and installation, is $245,000. If it is purchased, Dungan will incur costs of $6,800 to remove the present equipment and revamp its facilities. This $6,800 is tax deductible at time 0. Depreciation for tax purposes will be allowed as follows: year 1, $58,000; year 2, $88,000; and in...
12.30 (LO 4) Sinjay Corporation incurred the following costs while manufacturing its product H AI CUNUS...
12.30 (LO 4) Sinjay Corporation incurred the following costs while manufacturing its product H AI CUNUS Materials used in product Depreciation on plant Property taxes on warehouse Labour costs of assembly-line workers Factory supplies used $120,000 60,000 7,500 110,000 25,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 19,000 21,000 35,000 50,000 Work in process inventory was $10,000 at January 1 and $14,000 at December 31. Finished goods inven- tory was $60,000...
Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 50,000 Factory supplies used 13,000 Salaries paid to sales clerks (a) Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs. Bicycle components Depreciation on plant Property taxes on store Labor costs...
Question 20 Glavine Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $125,000 60,000 7,500 110,000 23,000 45,000 19,000 21,000 35,000 50,000 Work-in-process inventory was $27,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December...
Practice Question 19 Pharmco incurred the following costs while manufacturing its product: Materials used in production, $120,000; factory depreciation, $60,000; property taxes on the administrative offices, $12,000; labor costs of assembly-line workers, $95,000; factory supplies used, $8,000; advertising expense, $13,000; property taxes on the factory, $20,000; delivery expense, $23,000; salaries of the sales staff, $53,000; and sales commissions, $17,000. The total product costs for Pharmco are O $303,000 O $315,000. O $391,000. O $421,000
Compute cost of goods manufactured.
Glavine Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $125,000 60,000 7,500 110,000 23,000 45,000 19,000 21,000 35,000 50,000 Work-in-process inventory was $27,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and...
Compute cost of goods E14.8 (LO 3) Lopez Corporation incurred the following costs while manufacturing its product. manufactured and sold. Materials used in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods...
12.30 (LO 4) Sinjay Corporation incurred the following costs while manufacturing its product H AI CUNUS Materials used in product Depreciation on plant Property taxes on warehouse Labour costs of assembly-line workers Factory supplies used $120,000 60,000 7,500 110,000 25,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 19,000 21,000 35,000 50,000 Work in process inventory was $10,000 at January 1 and $14,000 at December 31. Finished goods inven- tory was $60,000...
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