Earnings per ShareReturn on AssetsReturn on EquityPrice Earnings Ratio4. Calculate the % Increase / Decrease in profits for each Year (versus the prior year) using thefollowing information:Year 1Year 2Year 3000'000$000'sSales000'005. What are the 3 types of manufacturing costs? Define each type of cost.6. What are period costs? Give 3 examples of period costs for an automobile manufacturer.7. What are product costs? Give 3 specific examples of product costs for an automobilemanufacturer.8. Refer to the following information:Rent on factoryRaw materials used in productionFactory supervisor's salaryFinance manager's salaryRent for the sales officeElectricity for the factoryWages for production staffFactory maintenance wagesCosts of shipping finished goods to customers$425,000000'00T$000'SL$GBM-2 HRESHRM$7,500000'oS$000'00s$$500,000Identify which costs are product costs, and which are period costs.For the product costs, identify which are direct and which are indirect.Determine the amount of manufacturing overhead.9. What are prime costs? What are conversion costs?

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4. Calculate the % Increase / Decrease in profits for each Year (versus the prior year) using the following information: Year 1 Year 2 Year 3 Sales $100,000 $200,000 $30,000 $250,000 $35,000 COGS $25,000

4. Calculate the % Increase / Decrease in profits for each Year (versus the prior year) using the following information: Year 1 Year 2 Year 3 Sales $100,000 $200,000 $30,000 $250,000 $35,000 COGS $25,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Earnings per Share
Return on Assets
Return on Equity
Price Earnings Ratio
4. Calculate the % Increase / Decrease in profits for each Year (versus the prior year) using the
following information:
Year 1
Year 2
Year 3
000'000$
000's
Sales
000'00
5. What are the 3 types of manufacturing costs? Define each type of cost.
6. What are period costs? Give 3 examples of period costs for an automobile manufacturer.
7. What are product costs? Give 3 specific examples of product costs for an automobile
manufacturer.
8. Refer to the following information:
Rent on factory
Raw materials used in production
Factory supervisor's salary
Finance manager's salary
Rent for the sales office
Electricity for the factory
Wages for production staff
Factory maintenance wages
Costs of shipping finished goods to customers
$425,000
000'00T$
000'SL$
GBM-2 HRESHRM
$7,500
000'oS$
000'00s$
$500,000
Identify which costs are product costs, and which are period costs.
For the product costs, identify which are direct and which are indirect.
Determine the amount of manufacturing overhead.
9. What are prime costs? What are conversion costs?

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