4. Company IR currently uses variable costing in presenting its income statement. In March 2020, the company produced 50,000 units and sold 45,000 units. The company sells its products at $100 per unit. The following are the costs incurred during March: • Direct materials - $30 per unit • Direct labor - $20 per unit • Manufacturing overhead - $20 per unit (30% is fixed cost) Total period cost - $20,000 (30% is fixed cost) 4 Assuming there were no ending inventories in February 2020, what would be the net operating income of Company IR? $1,300,000 $1,330,000 $1,800,000 $1,830,000 4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
4. Company IR currently uses variable costing in presenting its income statement. In March 2020, the company produced 50,000
units and sold 45,000 units. The company sells its products at $100 per unit. The following are the costs incurred during March:
• Direct materials - $30 per unit
• Direct labor - $20 per unit
• Manufacturing overhead - $20 per unit (30% is fixed cost)
• Total period cost-$20,000 (30% is fixed cost)
W
Assuming there were no ending inventories in February 2020, what would be the net operating income of Company IR?
$1,300,000
$1,330,000
$1,800,000
$1,830,000
4
Transcribed Image Text:4. Company IR currently uses variable costing in presenting its income statement. In March 2020, the company produced 50,000 units and sold 45,000 units. The company sells its products at $100 per unit. The following are the costs incurred during March: • Direct materials - $30 per unit • Direct labor - $20 per unit • Manufacturing overhead - $20 per unit (30% is fixed cost) • Total period cost-$20,000 (30% is fixed cost) W Assuming there were no ending inventories in February 2020, what would be the net operating income of Company IR? $1,300,000 $1,330,000 $1,800,000 $1,830,000 4
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education

Expert Answers to Latest Homework Questions

Q: Find Vo in the circuit below , Need handwritten answer do not use AI
Q: Create 4 Explaination or view for this scripture. The command to not be anxious is not about…
Q: Resuelve
Q: For the following molecules, indicate how many valence electrons are in the 1) bonding and 2)…
Q: Couldn't take another picture, but I need help with this problem it has parts a-i. Could you explain…
Q: The percent of fat calories that a person consumes each day is normally distributed with a mean of…
Q: Give detailed mechanism Solution with explanation needed..don't give Ai Generated solution
Q: 3.     Calculate the missing information in the table below…
Q: Provide infomation on the context of what the bible said about do not be anxious
Q: G 5% Carbocation Rearrangements 7) Draw the 5 MOST LIKELY carbocation rearrangements of the…
Q: Answer in step by step with explanation. Don't use Ai.
Q: Show work with explanation needed. Don't give Ai generated solution. Avoid handwritten Solution
Q: Please correct answer and don't use hand raiting and don't use Ai solution
Q: Need experts solution only.
Q: Show work. Don't give Ai generated solution
Q: You have taken a loan of $56,000.00 for 28 years at 3.5% compounded quarterly. Fill in the table…
Q: Give detailed mechanism Solution with explanation needed. Don't give Ai generated solution. Avoid…
Q: Answer in step by step with explanation. Don't use Ai and chatgpt. Answer in all options.
Q: Please correct answer and don't use hand raiting
Q: Describe the catecholamines. Give one example. Describe steroid hormones. Give one example. How are…
Q: Describe three steps in the second messenger system (i.e., cell signaling process) after…