Tutor need your help Carry Manufacturing Inc. had a variablecosting operating income of $95,200 in 2018.Ending inventory decreased during 2018from 50,000 units to 47,000 units. Duringboth 2017 and 2018, fixed manufacturingoverhead was $900,000, and 120,000 unitswere produced. Determine the absorptioncosting operating income for 2018.

Concept of Variable Costing Operating IncomeVariable Costing Operating Income is the income…

Answered: Carry Manufacturing Inc. had a variable…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required 1 Required 2 2018 $ 117,000 68,500 48,500 37,700 Year 670 10, 130 2,500 $ 7,630 2017 2018 2017 $ 145,500 Required: 1. Compute the times interest earned ratios for 2018 and 2017. 2. Does Gonzalez generate sufficient net income in both years (before taxes and interest) to cover the cost of debt financing? 78,300 67,200 40,400 Complete this question by entering your answers in the tabs below. 560 26,240 6,700 $ 19,540 Compute the times interest earned ratios for 2018 and 2017. (Round your answers to 1…
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required 1 Required: 1. Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Did Gonzalez do a better or worse job of controlling operating expenses in 2018 relative to 2017? Required 2 2018 $ 105,000 62,500 42,500 36,500 3. Gonzalez reported average net fixed assets of $54,700 in 2018 and $45,600 in…
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required 1 Required 2 Required 3 2018 $ 105,000 62,500 42,500 36,500 Required: 1. Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Did Gonzalez do a better or worse job of controlling operating expenses in 2018 relative to 2017? 550 5,450 1,500 $ 3,950 3. Gonzalez reported average net fixed assets…
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required 1 Required 2 Required 3 2018 $ 105,000 62,500 Required: 1. Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Did Gonzalez do a better or worse job of controlling operating expenses in 2018 relative to 2017? 3. Gonzalez reported average net fixed assets of $54,700 in 2018 and $45,600 in…
Determine the cost of goods sold
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According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Wizard Computers for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required: 2018 $ 114,000 67,000 2017 $ 141,000 77,100 47,000 63,900 37,400 39,800 640 545 8,960 2,000 23,555 6,400 $ 6,960 $ 17,155 1. Compute the times interest earned ratios for 2018 and 2017. 2. Does Wizard generate sufficient net income in both years (before taxes and interest) to cover the cost of debt financing? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the times interest earned ratios for 2018 and 2017. (Round your answers to 1 decimal place.) Times…
The following data were taken from XYZ Company for the years ending December 31, 2017 and 2018: In units Inventory, Jan 1 2017 2018 7,000 Production 20,000 18,000 Available for sale 20,000 25,000 Units sold 13,000 23,000 2,000 Inventory Dec 31 7,000 Sales (20 per unit) Variable mfg cost (7.50/unit) Fixed mfg cost Selling and admin expense 260,000 460,000 150,000 135,000 50,000 54,000 45,000 75,000 Selling and admin expense are 60% fixed and 40% variable. Required: Prepare a comparative income statements for 2017 and 2018 using Variable costing a b Absorption costing Reconcile the net income difference
Cost of goods sold
Please provide the answer to this general accounting question with proper steps.
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Gorham, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. Gorham, Inc., produced 70,000 units of product in 2017. Gorham's management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018. - X Data Table More Info Account Classification Amount a. Direct materials prices in 2018 are expected to increase by 8% compared with 2017. b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 4% in 2018 compared with 2017. Direct materials All variable $ 367,500 c. Power rates and wage rates for supervision, materials handling, and maintenance are not expected to change from 2017 to 2018. Direct manufacturing labor All variable 297,500 Power All variable 87,500 d. Depreciation costs are expected to increase by 9%, and rent, property taxes, and administration costs are…

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