A business operated at 100% of capacity during its first month, with the following results: Sales (108 units)   $648,000 Production costs (135 units):      Direct materials $87,561      Direct labor 22,356      Variable factory overhead 39,123      Fixed factory overhead 37,260 186,300   Operating expenses:      Variable operating expenses $5,388      Fixed operating expenses 4,203 9,591 The amount of operating income that would be reported on the absorption costing income statement is a.$523,380 b.$647,865 c.$519,177 d.$489,369

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: 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: The amount of gross profit that would be reported on the absorption costing income statement is…

A:

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

A: Calculate the sales price and cost per unit.

Q: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: variable costing is a overhead which is incurred only in the period of product is produced. Given…

Q: The following information was collected for the first year of manufacturing for Appliance Apps:…

A: Variable cost of Goods Sold per unit = Direct material + direct labor + variable manufacturing…

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: Cool Sky reports the following costing data on its product for its first year of operations. During…

A: Fixed overhead cost per unit = $572,000 / 44,000 units = $13

Q: The following data are from the accounting records of Niles Castings for year 2. Units…

A: Gross Margin Income Statement Sales revenue   310,000 Less:Cost of goods sold     Direct…

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

A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

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: The following data are from the accounting records of Niles Castings for year 2.           Units…

A: The income statement is the one prepared by the company to depict the company's financial…

Q: Units produced and sold   84,000   Total revenues and costs       Sales revenue $ 280,000   Direct…

A: Gross margin indicate the percentage of gross profit on the total revenue. The Gross profit is…

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

A:

Q: Carolina Corporation, which uses throughput costing, began operations at the start of the current…

A: Total cost is the amount of money incurred by the entity on the making and selling of the goods. It…

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

A: Product cost : Product cost are those cost which are directly attributable to products like…

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 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: Farrow Company reports the following annual results.   Contribution Margin Income Statement Per…

A: Special Order Decision is an accounting method which is used to make decision regarding making or…

Q: Locklear, Inc. reports the following information for the year ended December 31: Units sold Sales…

A: Absorption costing is the costing method which determines the net operating income by considering…

Q: t the end of the first year of operations, 6,400 units remained in the finished goods inventory. The…

A: Workings:

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

A: Variable Costing is a method of cost allocation in which only variable direct costs are assigned as…

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

A: Selling price= $117 Units in beginning inventory 0 Units produced 2,900 Units sold 2,500 Units in…

Q: Sims Company began operations on January 1. Its cost and sales information for this year follow.…

A: Variable costing Income statement: The variable costing income statement is the income statement 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: 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: Farris Corporation, which has only one product, has provided the following data concerning its most…

A: Marginal costing method: It is also called the Variable costing method. In this method, all the…

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: Barnes Company reports the following for its product for its first year of operations. $ 33 per unit…

A: Absorption Costing is a costing where the following costs are considered to calculate product costs…

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: [The following information applies to the questions displayed below.]   Cool Sky reports the…

A: Absorption costing is a costing technique in which management of company consider all variable and…

Q: Sims Company began operations on January 1. Its cost and sales information for this year follow.…

A: The income statement indicates the profitability of the company, it reports the profit or loss for…

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

A: The contribution margin is calculated by subtracting all variable expenses from revenue in a…

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

A: Lets understand the basics. There are two type of costing systems are followed which are, (1)…

Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…

A: The net income is calculated as difference between revenues and expenses. The absorption costing…

Q: repare an estimated income statement, comparing operating results if 28,800 and 36,000 units are…

A: Estimated Income Statement is defined as the income statement which is prepared for the estimated…