CoveTech Corp. reported a variable costing net income of $72,000 last year. The fixed manufacturing overhead cost released from inventory under absorption costing was $18,000. What is CoveTech's net income using absorption costing?

CoveTech Corp. reported a variable costing net income of $72,000 last year. The fixed manufacturing overhead cost released from inventory under absorption costing was $18,000. What is CoveTech's net income using absorption costing?

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...

See similar textbooks

Related questions

Q: The merchandise inventory of sunny retailer was destroyed by fire on November 20.

A: Concept of Beginning Inventory:Beginning inventory refers to the value of goods available for sale…

Q: Fargo Organics has sales of $189,400, total assets of $205,700, a debt-equity ratio of 1.85, and a…

A: Equity Multiplier = 1+Debt/Equity Ratio Equity Multiplier = 1+1.85 Equity Multiplier = 2.85

Q: General accounting

A: Given:Contribution margin = 40%Expected sales increase = $45,000Promotional cost = $12,000Step 1:…

Q: Sunnydale Industries is considering investing in an automated packaging system. If the project is…

A: 1. Calculate the Change in Earnings Before Interest and Taxes (EBIT):Decrease in labor costs:…

Q: Boone's operating leverage is_.

A: Solution :-Final Answer:Boone's operating leverage is 2.5. This means that for every 1% change in…

Q: Infinity Lighting, a wholesaler, sold several crates of lighting for $1500 on account to a customer…

A: The credit terms 1/10, n/30 mean that the customer is offered a 1% discount if they pay within 10…

Q: I need assistance with this financial accounting question using appropriate principles.

A: Step 1: Definition of Lower of Cost or Net Realizable Value (LCNRV)Lower of Cost or Net Realizable…

Q: Accounting question

A: Step 1: Define Direct Materials VariancesDirect materials variances measure the differences between…

Q: Can you explain the process for solving this financial accounting question accurately?

A: Provided Data:Liabilities (Amount owed to creditors) = $12,800Case (a) Assets = $21,600Case (b)…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: Step 1: Define Manufacturing Cost per UnitManufacturing cost per unit represents the total…

Q: Calculate gross profit for the year

A: Explanation of Net Sales: Net sales represents the total revenue generated from selling goods or…

Q: If 2019 is the base year, what is the percentage increase in the cost of goods sold from 2019 to…

A: Concept of Cost of Goods Sold (COGS):Cost of Goods Sold represents the direct costs attributable to…

Q: General accounting

A: Step 1: Definition of Gross ProfitGross Profit is the difference between sales revenue and the cost…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Definition of Price-Earnings (P/E) RatioThe Price-Earnings (P/E) Ratio is a widely used…

Q: Solution

A: Concept of Predetermined Overhead Rate:The predetermined overhead rate is a rate used to allocate…

Q: I am trying to find the accurate solution to this general accounting problem with the correct…

A: Step 1: Definition of Straight-Line DepreciationStraight-line depreciation is a method of allocating…

Q: If the company's cost of goods sold for the year was $600,000, purchases must have been:

A: We can solve this using the Inventory Formula:COGS = Beginning Inventory + Purchases - Ending…

Q: Job 932

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

Q: How can I solve this financial accounting problem using the appropriate financial process?

A: Concept of Variable ExpensesVariable expenses are costs that change in direct proportion to the…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: Step 1: Definition of Variable CostVariable costs are costs that change in direct proportion to…

Q: Nashville Enterprises wishes to earn a pre-tax income of $40,000. Total fixed costs are $96,000, and…

A: Concept of Fixed CostsFixed costs are business expenses that remain constant regardless of the…

Q: Which of the following amounts represents the variable overhead spending variance?

A: Definition of Variable Overhead Spending Variance:This variance shows the difference between what…

Q: Gross profit rate must be what?

A: To find the Cost of Goods Sold (COGS) and Gross Profit Rate, we use the following steps:Step 1:…

Q: Provide right answer

A: To calculate purchases, you can use the inventory formula:Beginning Inventory + Purchases - Ending…

Q: Please provide answer this general accounting question

A: Step 1: Definition of Days Sales Outstanding (DSO) Days Sales Outstanding (DSO) is a financial…

Q: Delta's inventory records for February reflect the following details: On February 1, the beginning…

A: Explanation of Inventory: Inventory represents the goods a company holds for sale in the ordinary…

Q: At year-end, John's Electronics has the following financial details: • • • . Cash: $10,000 Current…

A: Step 1: Definition of Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) measures how many…

Q: The Great Eastern TableGreat Eastern Table Company produces dining tables in a three-stage…

A: Step 1: 1-Fill in the timeline for the Sawing Department.Conversion costs added evenly throughout…

Q: Switzer Ltd. reported net income of $385,000 for the year ended December 31, 2020, and had 700,000…

A: Basic EPS is calculated by dividing the net income by the weighted average number of common shares…

Q: I need help solving this general accounting question with the proper methodology.

A: To find the implied variable cost per scan, we use the profit formula:Profit = (Revenue - Variable…

Q: Please provide problem with accounting question

A: Step 1: Definition of After-Tax LossAfter-tax loss refers to the financial loss remaining after…

Q: Please give me true answer this financial accounting question

A: Step 1: Define Total Stockholders' EquityTotal stockholders' equity represents the ownership…

Q: Please help me solve this general accounting problem with the correct financial process.

A: Step 1: Definition of Sales Required to Achieve Target Net IncomeThe sales required to achieve a…

Q: What is the variable overhead efficiency variance for the month?

A: Definition of Variable Overhead Efficiency Variance:This variance measures the efficiency of labor…

Q: Can you solve this financial accounting question with the appropriate financial analysis techniques?

A: Step 1: Definition of Retained EarningsRetained Earnings refer to the cumulative net income of a…

Q: I need assistance with this general accounting question using appropriate principles.

A: Step 1: Definition of Markup and Percentage MarkupMarkup refers to the amount added to the cost…

Q: Help

A: Explanation of Asset Turnover Ratio:The asset turnover ratio is a financial metric used to measure…

Q: A copier cost $78,000 when new and has an accumulated depreciation of $54,000. If the business…

A: Explanation of Book Value:Book value is the net value of an asset after subtracting accumulated…

Q: Financial Accounting Question

A: To calculate Trent's realized gain on the sale of the bakery facility, use the formula: Realized…

Q: question 7

Q: Pine Ridge Corporation purchased a delivery van for $40,000 on January 1, 2018. The van has an…

A: To calculate depreciation expense per mile using the units-of-activity method, use this formula:…

Q: I need guidance with this general accounting problem using the right accounting principles.

A: Step 1: Definition of Intangible Assets Intangible assets are non-physical assets that provide…

Q: Can you demonstrate the proper approach for solving this financial accounting question with valid…

A: Step 1: Definition of Asset Turnover RatioThe Asset Turnover Ratio is a financial metric that…

Q: Can you help me solve this general accounting problem with the correct methodology?

A: Step 1: Define Overapplied OverheadOverapplied overhead occurs when the applied overhead is greater…

Q: General Accounting

A: Step 1: Define Cost of a Delivery TruckThe cost of a delivery truck includes all expenditures…

Q: Could you explain the steps for solving this financial accounting question accurately?

A: Step 1: Definition of Asset Turnover RatioThe asset turnover ratio measures how efficiently a…

Q: I need help with this general accounting question using standard accounting techniques.

A: Step 1: Definition of Sales-to-Assets RatioThe sales-to-assets ratio measures how efficiently a…

Q: I am looking for the correct answer to this general accounting question with appropriate…

A: Option a: 3.00 is correct Total asset turnover ratio = 3.00 Total asset turnover ratio = Net sales…

Q: I need help with this general accounting problem using proper accounting guidelines.

A: Step 1: Definition of Labor Rate Variance and Labor Efficiency VarianceLabor Rate Variance (LRV)…

Q: Please help me solve this general accounting problem with the correct financial process.

A: Step 1: Definition of Current AssetsCurrent assets are assets that are expected to be converted into…

Question

100%

Can you help me solve this general accounting question using valid accounting techniques?

CoveTech Corp. reported a variable costing net income of
$72,000 last year. The fixed manufacturing overhead cost
released from inventory under absorption costing was
$18,000.
What is CoveTech's net income using absorption costing?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
The following information pertains to Vladamir, Inc., for last year: There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is 29. Prepare an income statement using (a) variable costing and (b) absorption costing.
What is the absorption costing net operating income for last year on these general accounting question?
Can you solve this general accounting problem using accurate calculation methods?
Mitvhel corporation manufactures...Accounting
Can you help me with accounting questions
What was the absorption costing net opreting income last year?
Mitchel Corporation manufactures a single product. Please need help with this accounting question
What was the absorption costing net operating income last year?
Please give me answer Accounting
Can you answer this financial Accounting Question?
What is net income under absorption costing???