A company has established a marginal costing profit of $72,300. Opening inventory was 300 units andc closinginventory is 750 units. The fixed production overhead absorption rate has been calculated as$ 5/unit. What was the profit under absorption costing?

A company has established a marginal costing profit of $72,300. Opening inventory was 300 units andc closinginventory is 750 units. The fixed production overhead absorption rate has been calculated as$ 5/unit. What was the profit under absorption costing?

Name: A company has established a marginal costing profit of $72,300. Openin
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: A company has established a marginal costing profit of $72,300. Opening inventory was 300 units andc closinginventory is 750 units. The fixed production overhead absorption rate has been calculated as$ 5/unit.What was the profit under absorption cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please provide correct solution for correct answer
At the end of the accounting period Tubman, Inc. reports operating income of $50,000, a contribution margin of $15, and a fixed overhead rate of $6 per unit. Under variable costing, if this company produces 100 more units of inventory, then operating income: a. will increase by $1,500 b. will decrease by $1,500 c. will increase by $900 d. will decrease by $900 e. will increase by $600 f. will decrease by $600 g. will not be affected h. Cannot be determined
An increase in of $1,000 in fixed selling overheads will affect the net profit reported under marginal and absorption cost methods as follows:a) Decrease net profit only where absorption costing is usedb) Decrease net profit only where marginal costing is usedc) Decrease net profit equally in both absorption and marginal costingd) Leave net profit unchanged in both cases
A company's operating income was $75,000 using variable costing for a given period. Beginning and ending inventories for that period were 46,000 units and 51,000 units, respectively. Ignoring income taxes, if the fixed factory overhead application rate was $8.10 per unit, what would operating income have been using full costing? Multiple Choice $32,250. $115,500. Cannot be determined from the information given. $150,000. $102,000.
Panta Corp had net income of P226,000 based on variable costing. Beginning and ending inventories were 7,400 units and 12,800 units, respectively. Assume the fixed overhead per unit was P5 for both the beginning and ending inventory. What is net income under absorption costing?
A company has a net income of $918,000 based on variable costing method. Beginning and ending inventories were 56,800 units and 55,600 units. Assume the fixed overhead per unit was $2.15 for both the beginning and ending inventory. What will be the net income under absorption costing?
A company provided the following information about its one and only product: Direct materal used: $45,000 Direct labour: $30,000 Fixed factory overhead: $42,000 Fixed Selling & administrative expenses: $8,000 Variable factory overhead: $28,000 Variable Selling & administrative expenses: $12,000 Selling price de unit: $12 Units produced: 10,000 The unit cost of a unit under the marginal costing approach is a. $5.00 b. $514.50 c. $516.50 d. $510,30
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price Direct materials Direct labor Variable overhead Fixed overhead $ 56.60 per unit $ 9.60 per unit $ 7.10 per unit $ 11.60 per unit $ 910,800 per year 1. Compute gross profit assuming (a) 66,000 units are produced and 66,000 units are sold and (b) 92,000 units are produced and 66,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 26,000 more units than it sells? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Compute gross profit assuming (a) 66,000 units are produced and 66,000 units are sold and (b) 92,000 units are produced and 66,000 units are sold. (a) 66,000 Units Produced and 66,000 (b) 92,000 Units Produced and 66,000 Units Sold Units Sold Sales $ 3,735,600 $ 5,207,200 Cost of goods sold 2,838,000 3,514,400 Gross profit $…
Pacific Inc. has provided the following data for the latest quarter of the most recent year: Sales $300,000 Fixed manufacturing overhead 55,000 Direct labour 72,500 Fixed selling expense 46,250 Variable manufacturing overhead 41,000 Variable administrative expense 48,000 Direct materials 51,500 Fixed administrative expense 44,500 Variable selling expense 49,750 Assume that direct labour is a variable cost and that there was no beginning or ending inventories.The gross margin (loss) for Pacific for the latest quarter was? Multiple Choice $(12,500). $80,000. $131,500. $135,000.
lomework (i) Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. \table[[Sales price,$56.10 per unit], [ Direct materials, $9.10 per unit], [Direct labor, $6.60 per unit], [Variable overhead,$11.10 per unit], [Fixed overhead,$750,300 per year]] Compute gross profit assuming (a) 61,000 units are produced and 61,000 units are sold and (b)82,000 units are produced and 61,000 units are sold. By how much would the company's gross profit increase or decrease from producing 21,000 more units than it sells?
During the year, ABS Corporation produced 500 units of new products. The new product’s variable and fixed manufacturing ocst per unit were P5 and P 3, respectively. At the end of the period, the new product’s inventory consisted of 80 units. What would be the change in the peso amount of inventory at the end of the period if absorption costing were used instead of variable costing?
Using Direct Costing Method, sha Company had a net profit of ₱76,300. Ending inventory decreased from 80,000 units to 78,500. The fixed MOH had a total cost of 650,000 and produced 50,000 units. The operating income under absorption costing is: