Homework Answers
ANSWER:
The net income under absorption costing is as below:
| Particulars | Amount $ | Amount $ |
| Sales (6000*$17) | 102000 | |
| Less: Cost of goods sold | ||
| Cost of goods manufactured (8000*$9) | 72000 | |
| Less: Closing inventory (2000*$9) | 18000 | 54000 |
| Gross profit | 48,000 | |
| Less Selling & Administrative cost | 10000 | |
| Net Income | 38,000 |
Option C is correct
Note: Manufacturing expenses per uni = $ 6 + ($24000/8000)
= $6 + $3 = $9
_____________________________________________
If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.
*****************THANK YOU**************
Add Answer to:
Burke Company produced 8,000 units of inventory and sold 6,000 of them. The company incurred the following production c...
Lewes Company produced 8,000 units of inventory and sold 6,000. The company incurred the following production...
Lewes Company produced 8,000 units of inventory and sold 6,000. The company incurred the following production costs: Variable manufacturing cost: $12.00 per unit Fixed manufacturing overhead cost: $60,000 total Assuming the company sells its product at a price of $27.50 per unit, and incurred $10,000 in selling and administrative cost, what is the amount of net income under variable costing? Select one: A. $8,000 o B. $107,000 o C. $68,000 D. $23,000
Assume that a company produced 10,000 units and sold 8,000 units during its first year of...
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Fixed selling and administrative expense Per Unit $240 $ 85 $ 60 $ 10 $ 11 $ 2 $ 250,000 If the company's unit product cost under absorption costing is $194, then what is the amount of fixed manufacturing overhead...
Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20....
Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20. Costs for last year were as follows: Direct materials $30,000 Direct labor 38,000 Variable factory overhead 8,000 Fixed factory overhead 40,000 Variable selling expense 5,000 Fixed selling expense 4,900 Fixed administrative expense 11,000 Fixed factory overhead is applied based on expected production. Last year, Richmon expected to produce 10,000 units. What is operating income for last year under absorption costing? a. $55,000 b. $39,000...
In the current year, TGIT Corp. produced 10,000 units and sold 8,000 of the units. The...
In the current year, TGIT Corp. produced 10,000 units and sold 8,000 of the units. The company incurred the following costs: Direct materials used $120,000 Direct labour cost 68,000 Variable manufacturing overhead 40,000 Fixed manufacturing overhead 60,000 Fixed selling and admin. expense 45,000 Variable selling and admin. expense 36,000 There was no beginning finished goods inventory and no beginning or ending work-in-process inventory. Use the information provided to answer the following questions: aa) Without doing any calculations, would net income...
Assume the following information for a company that produced 10,000 units and sold 8,000 units during...
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed selling and administrative expense Fixed manufacturing overhead Per Unt $200 $ 75 $ 50 $ 8 $ 8 Using variable costing, what is the net operating income for the second year of operations?...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 10 Direct labor $ 4 Variable manufacturing overhead $ 2 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 374,000 Fixed selling and administrative $ 284,000 During the year, the company produced 34,000 units and sold 26,000 units. The selling price of the company’s product is $44...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year 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 $ 15 $ 5 $ 1 $ 1 $ 286,000 $ 196,000 During the year, the company produced 26,000 units and sold 22,000 units. The selling price of the company's product is $46...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 14 Direct labor $ 3 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 Fixed selling and administrative $ 240,000 During the year, the company produced 33,000 units and sold 24,000 units. The selling price of the company’s product is $44...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 11 Direct labor $ 4 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 308,000 Fixed selling and administrative $ 218,000 During the year, the company produced 28,000 units and sold 24,000 units. The selling price of the company’s product is $41...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year 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 httी $308,000 $218,000 During the year, the company produced 28,000 units and sold 24,000 units. The selling price of the company's product is $41 per unit. Required: 1. Assume that the company uses...
Lewes Company produced 8,000 units of inventory and sold 6,000. The company incurred the following production costs: Variable manufacturing cost: $12.00 per unit Fixed manufacturing overhead cost: $60,000 total Assuming the company sells its product at a price of $27.50 per unit, and incurred $10,000 in selling and administrative cost, what is the amount of net income under variable costing? Select one: A. $8,000 o B. $107,000 o C. $68,000 D. $23,000
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Fixed selling and administrative expense Per Unit $240 $ 85 $ 60 $ 10 $ 11 $ 2 $ 250,000 If the company's unit product cost under absorption costing is $194, then what is the amount of fixed manufacturing overhead...
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed selling and administrative expense Fixed manufacturing overhead Per Unt $200 $ 75 $ 50 $ 8 $ 8 Using variable costing, what is the net operating income for the second year of operations?...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year 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 $ 15 $ 5 $ 1 $ 1 $ 286,000 $ 196,000 During the year, the company produced 26,000 units and sold 22,000 units. The selling price of the company's product is $46...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year 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 httी $308,000 $218,000 During the year, the company produced 28,000 units and sold 24,000 units. The selling price of the company's product is $41 per unit. Required: 1. Assume that the company uses...
Most questions answered within 3 hours.
-
Computer Programming II CS141(Java)
Mention the appropriate relationship between following
classes:
HOD–StaffMember
Car–Ferrari
Student-Address
BankAccount–FixedAccount
House-Building...
asked 1 hour ago -
Assume one of your finals has 50 questions on it, and
lucky for you, it's all...
asked 3 hours ago -
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 4 hours ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 4 hours ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 5 hours ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 5 hours ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 5 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 6 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 9 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 10 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 10 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 10 hours ago