Which of the following statements is true for these financial accounting question? Falcon Tech Industries sold 12,000 units of inventory during a given period. Thelevel of inventory of the manufactured product remained unchanged. Themanufacturing costs were as follows:Cost ComponentVariable Cost Per Fixed Cost PerUnitUnit manufacturing costs of the $14.00periodUnit$9.00Unit operating expenses of the $4.00period$3.50Which of the following statements is true?a. Net income under absorption costing will be $54,000 more than undervariable costing.b. Net income will be the same under both variable and absorption costing.c. Net income under variable costing will be $50,000 less than net income underabsorption costing.d. The difference in net income cannot be determined.

Step 1: Definition of Net Income Difference Between Absorption and Variable CostingThe difference in…

Answered: Falcon Tech Industries sold 12,000…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1PB: When prices are falling (deflation), which costing method would produce the highest gross margin for...

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The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Which of the following statements is true on these general accounting question?
S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of the manufactured product remained unchanged. The manufacturing costs were as follows: Variable Fixed $11.00 $7.00 3.00 2.50 Unit manufacturing costs of the period Unit operating expenses of the period Which of the following statements is true? a. Net income will be the same under both variable and absorption costing. b. The difference in net income cannot be determined. d. Net income under variable costing will be $45,000 less than net income under absorption costing.
Please provide correct answer general accounting question
The level of inventory of a manufactured product has increased by 8,413 units during a period. The following data are also available: Varlable Fixed Unit manufacturing costs of the period $11.00 $6.00 Unit operating expenses of the period 1.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $50,478 increase Ob. s50,478 decrease Oc. s84,130 decrease Od. S84,130 increase Pre Submit Tes
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S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of the manufactured product remained unchanged. The manufacturing costs were as follows: Variable Fixed Unit manufacturing costs of the period $ 11.00 $ 7.00 Unit operating expenses of the period 3.00 2.50 Which of the following statements is true? a. Net income under absorption costing will be $40,000 more than under variable costing. b. Net income will be the same under both variable and absorption costing. c. Net income under variable costing will be $45,000 less than net income under absorption costing. d. The difference in net income cannot be determined.
The level of inventory of a manufactured product has increased by 7,859 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 2.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $78,590 increase Ob. $62,872 increase Oc. $78,590 decrease Od. $62,872 decrease
Winner Company has two products with cost and selling price as follows: Product X Product Y Selling price 2,000,000 3,000,000 Estimated selling cost 600,000 700,000 Materials and conversion cost 1,500,000 1,800,000 General administration cost 300,000 800,000 At year-end, the manufacture of inventory has been completed but no selling cost has yet been incurred. Under LCNRV by individual item, the inventory shall be measured at what amount?
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Gatekeeper Company has two products with cost and selling prices as follows: Product X Product Y Selling price Estimated selling cost 2,000,000 600,000 3,000,000 700,000 Materials and conversion 1,500,000 1,800,000 cost General administration cost 300,000 800,000 At year-end, the manufacture of inventory has been completed but no selling cost has been incurred. Question 1: Under the LCNRV by individual item, the inventory shall be measured at what amount? Question 2: Under the LCNRV by total, the inventory shall be measured at what amount?

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