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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
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
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
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: QUESTION 2
Baha I is a religious movement that began in Persia, growing out of Shiite Islam and the…
Q: QUESTION 1
TRUE OR FALSE: The God of Islam is one omnipotent God who created the universe and…
Q: solve using square root
Q: v²+2v+8=0
11+ V553 11√553
A)
18
18
-7+ √545 -7- √545
B)
2
2
c) (-1+i√√7,-1-i√√7)
D) 4,-
31
6
Q: 4n²+2n 30-5n
A) 2,
B)
15
4
i√√√6 i√6)
2
2
C) i√6,-i√6
D)
i√6
4
4
Q: O 11v2+12=-12v
(-6+4i√√6-6-4i√√6
A)
11
11
6+2√42 6-2√√√42)
B)
11
11
-6+ √3 -6- √√3
c)
11
(6+4i√√6…
Q: 7n² + 8 = 2n
-7+1√√√287-7-i√√287
A)
12
12
7+ V385 7- √385
B)
12
12
√19
C)
√19
3
3
(1+i√√55 1-1√√55…
Q: The purpose of this problem is to practice the use of Itô formula. We consider the three
processes…
Q: Let (W)to be a Brownian Motion.
(a) Find an expression with integrals for W4 using Itô formula.
(b)…
Q: Let (W)to be a Brownian Motion.
(a) Let
1
if Wt > 0,
Xt=sgn(W)=
0
t
if W₁ = 0,
-
1
if Wt < 0.
Check…
Q: Let (W)to be a Brownian Motion.
(a) Let Xt, check that (X+) is an Itô-integrable process.
(b) Let Y₁…
Q: Give an example and show how to do calculations
Q: Single phase non-ideal transformer. Turn Ratio= 3000/600.
R₁ = 0.9Q
R2= 36 mQ
Ro= 3000 Q
X₁₁ = 0.60…
Q: QUESTION 1
Sequential steps taken by a phagocytic cell destroying an invading pathogen iinclude...…
Q: A three phase stator is shown below. The positive polarity of the currents is shown in the
image.…
Q: QUESTION 3
What is the clinical definition of a fever?
OA. 98.6 degrees Fahrenheit
B. 100.4 degrees…
Q: Box answer
Q: Single phase non-ideal transformer. Turn Ratio= 3000/600.
R₁ = 0.9Q
R₂= 36 mQ
Ro= 3000 Q
X₁₁ = 0.6Q…
Q: QUESTION 2
Which of the following is induced by pyrogens?
O Fever
A body temperature above 38…
Q: Answer in step by step with explanation.
Don't use Ai and chatgpt.
Q: What was the number of credit sales during December on this general accounting question?