A business operated at 100% of capacity during its first month, with the following results: Sales (96 units)   $489,600 Production costs (120 units):      Direct materials $66,157      Direct labor 16,891      Variable factory overhead 29,560      Fixed factory overhead 28,152 140,760   Operating expenses:      Variable operating expenses $5,361      Fixed operating expenses 3,444 8,805 The amount of gross profit that would be reported on the absorption costing income statement is a.$489,480 b.$376,992 c.$368,187

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

A: Gross profit is the amount of profit earned by the an entity after deducting the costs of making the…

Q: business operated at 100% of capacity during its first month and incurred the following costs:…

A: Introduction:   To keep track of all costs associated with creating a certain product, "absorption…

Q: provide correct answer please

A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Absorption Costing Method :— Under this method, total manufacturing cost or production cost is the…

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

A: Explanation - Gross Profit will be calculated as Sales - Cost of Goods Sold. Cost of Goods Sold…

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

A: Introduction: Variable costing: Variable costing product cost = Direct materials + Direct labor +…

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

A: b. $425,810Explanation:Unit product cost under Variable costing Total cost (A)Production cost…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Introduction: Total cost is an accounting measure. It includes not only the actual monetary spend…

Q: Easton Pump Company's planned production for the year just ended was 19,300 units. This production…

A: For accounting purposes, businesses value their work-in-progress and inventory using absorption…

Q: Vulture Company had the following results of operations for the first month of operations: Units…

A: Cost Volume Profit Analysis - It will used to derive the changes in costs and volume affect the…

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: Production costs (18,900 units): Direct materials Direct labor $171,300 235,500 247,300 93,300…

A: Using absorption Costing, all fixed and variable manufacturing costs are included in the product…

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

A: a. $395,930Explanation:In preparing the variable costing income statement, we need to note that all…

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

A: Absorption Costing - Under this method of the income statement, all the product costs whether fixed…

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

A: Gross Margin - Gross Margin is computed as dividing gross profit by sales. It shows the margin…

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: Easton Pump Company's planned production for the year just ended was 19,300 units. This production…

A: Variable costing is a method of costing in which product cost is calculated by adding direct…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: A company that produces a single product had a net operating income of $87,000 using variable…

A: The difference in the net operating income of variable costing and absorption costing occurs only…

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

A: Absorption Costing includes all the cost including Variable and Fixed cost, we should consider all…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: To calculate the ending inventory under variable costing, we need to determine the total variable…

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

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

A: Step 1: Introduction to the Absorption Costing:Under the absorption costing method, the fixed…

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: 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: None

A: Step 1: Calculation of gross profit using absorption costing  It is given in the question,…

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: 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: 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: 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…

Q: Data concerning Dakota Enterprises' operations last year appear below: Units in the Beginning…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub-parts for…

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.