.A business operated at 100% of capacity during its first month, with the following results: Sales (112 units)   $560,000 Production costs (140 units):      Direct materials $70,000      Direct labor 17,500      Variable factory overhead 31,500      Fixed factory overhead 28,000 147,000 Operating expenses:      Variable operating expenses $6,120      Fixed operating expenses 3,230 9,350 The amount of operating income that would be reported on the variable costing income statement is a.$427,450 b.$458,680 c.$559,860 d.$550,650

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: Product cost is the cost incurred on the production or making of a product. It is the cost that…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Unit costs include all manufacturing fixed and variable cost. Variable costs are flexible as per…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Computation of Operating Income Sales  (96)                         = $480,000 Less- Cost of goods…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Absorption costing also called as historical costing is the practice of charging both fixed and…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: Product cost is the amount of cost incurred by the entity on the making of the goods. It includes…

Q: A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: Sales (90 units)   $90,000 Production costs (100 units)        Direct materials $40,000…

A: Variable costing income statement refers to all the variable costs which are subtracted from income…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…

Q: Gabuat Corporation, which has only one product, has provided the following data concerning its most…

A: The objective of the question is to calculate the total gross margin for the month under the…

Q: A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable…

A: Income Statement:Income statement consists of the part of financial statements, prepared to know…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Variable costing:  Sales $90,000Product cost (Variable manufacturing cost)$40,000 Direct…

Q: Prior to the first month of operations ending October 31, Marshall Inc. estimated the following…

A: Income statement in the cost accounting can be prepared using two methods; Absorption costing and…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Contribution Margin: To get the contribution margin, take the selling price per unit and subtract…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: One of the three crucial financial statements along with the cash flow statement and the balance…

Q: Prepare an estimated income statement, comparing operating results if 23,200 and 25,600 units are…

A: Income Statement is one of the important financial statement to be prepared at the year-end along…

Q: a. 1. Prepare an estimated income statement, comparing operating results if 25,600 and 28,800 units…

A: To determine the product cost of a company two types of costing methods are used which are variable…

Q: ow do I prepare an income statement based on variable co

A: In managerial accounting, variable costing is a cost concept. During the creation of a product…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A:

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Unit product cost under variable costing = Direct materials + Direct labor + Variable manufacturing…

Q: What is the net operating income for the month under variable costing?

A: Here is the calculation of operating income for the month under variable costing method: -

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Under variable costing, fixed manufacturing overhead is considered as a period cost and deducted a…

Q: A business operated at 100% of capacity during its first month, with the following results: $655,400…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

A: Preparation of income statement under absorption costing and variable costing system are as follows.

Q: If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the…

A: The difference between Total Sales and Total Variable Cost is known as Contribution. All the direct…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Absorption costing is one of the techniques used to calculate the amount of profit generated by the…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Operating Income:- Operating income is refers to the income, which shows the amount of profit that a…

Q: A firm has a net income of $918,000 based on variable costing. Beginning and ending inventories…

A:

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: In variable costing statement ,we will value the inventory at variable factory cost . Fixed factory…

Q: On October 31, the end of the first month of operations, Maryville Equipment Company prepared the…

A: The income statement is prepared using various methods as variable costing and absorption costing.…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Under absorption costing, fixed factory overhead is also a product cost and therefore included in…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Variable costing approach means where goods are valued at variable manufacturing cost only and fixed…

Q: At the end of the accounting period Tubman, Inc. reports operating income of $50,000, a contribution…

A: Under the variable costing, fixed costs are taken as period costs and taken as a whole amount.…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A:

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Ending Inventory (in units) = 27 units Cost per unit = Total Production CostNumber of units…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.