A company reports sales of $320,000, wages totaling $120,000 for production workers, and the plant manager's salary of $90,000. FedEx shipping charges $1,500. Under the absorption costing method, the income from operations is
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Under the absorption costing method, the income from operations is
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- The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.The accounting records of Nelson Manufacturing revealed the following selected costs: Sales commissions, $96,000; plant insurance, $80,000; and administrative expenses, $150,000. What is Nelson Manufacturing's period costs total?
- What is total period cost?The accounting records of Younkin Corporation revealed the following selected costs: Sales commissions, $61,000; plant supervision, $215,000. and administrative expenses, $184,000. What is Younkin’s period costs total?1 Determine if each item is a period or product cost. Also determine whether the costs are selling/administrative if a period cost, or direct/indirect if product cost. Period cost Product cost Selling expense General and administrative expense Direct cost Indirect cost A. Paid $77,500 for materials used for the product B. Paid sales commissions of $58,200. C. Paid $38,800 in salaries for factory employees that make the product D. Paid $88,300 in salaries for executives (president and vice presidents). E. Recorded depreciation 16,400 was depreciation on factory equipment F. Recorded depreciationcost of 14,000 on the headquarters building where sales/admin are staffed F. Paid $3,100 for various suppl
- The following data are from the accounting records of Niles Castings for year 2. Units produced and sold 87,000 Total revenues and costs Sales revenue $ 290,000 Direct materials costs 68,000 Direct labor costs 39,000 Variable manufacturing overhead 13,000 Fixed manufacturing overhead 47,000 Variable marketing and administrative costs 14,000 Fixed marketing and administrative costs 36,000 Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Please answer reuired a,bPlease give me answer general accounting questionDuring the current period, 14,000 units were produced and 12,000 units were sold. Fixed manufacturing costs incurred amounted to $126,000. An absorption costing income statement would report fixed manufacturing costs as which of the following? Select one: a.Costs of $108,000 as a deduction from gross profit to obtain operating income b.Overhead of $126,000 as a deduction from sales revenue to obtain gross profit c.Overhead of $108,000 as a deduction from sales revenue to obtain gross profit d.Costs of $126,000 as a deduction from sales revenue to obtain contribution margin
- The following data are from the accounting records of Niles Castings for year 2. Units produced and sold 89,000 Total revenues and costs Sales revenue $310,000 Direct materials costs 63,000 Direct labor costs 34,000 Variable manufacturing overhead 10,000 Fixed manufacturing overhead 45,000 Variable marketing and administrative costs 13,000 Fixed marketing and administrative costs 37,000 Required: Prepare a gross margin income…ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results: Service 1 Service 2 Service revenue $ 85,000 $ 25,000 Unit-level materials $ (21,000 ) $ (3,000 ) Unit-level labor $ (31,000 ) $ (15,000 ) Product-level selling & administrative costs $ (11,000 ) $ (4,500 ) Company wide facility-level costs $ (6,000 ) $ (6,000 ) Net income (loss) $ 16,000 $ (3,500 ) If the company stops providing Service 2: a.The company's income will decrease by $2,500 per year. b.The company's income will increase by $2,500 per year. c.The company's income will increase by $3,500 per year. d.The company's income will decrease by $3,500 per year.A product cost is composed of the following:
