​Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable​ costing, ________.   A. its operating income will be the same as under absorption costing   B. its operating income for the period will be lower than under absorption costing   C. its operating income for the period will be higher than under absorption costing   D. its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing

Q: Which formula reconciles the difference between absorption and variable-costing income?

A: In case of variable costing, only variable cost would be considered as product costs and fixed costs…

Q: The Sou ion manufactures a single product and has the following cost Variable costs per unit:…

A: Lets understand the basics.Product cost can be calculated using,(1) Variable costing (2) Absorption…

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A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Gloria’s a food manufacturer is trying to make an assessment of its operations for the past year.…

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Q: If a company produces 10,000 units and sells 8,000 units during a period, which method of computing…

A: The method of computing operating income that will result in a higher operating income will depend…

Q: How many units did it produce?

A: Given that: EKP’s unit production cost under variable costing is $5, and $8 under absorption…

Q: Sterling Co. manufactures phone equipment and uses the variable cost method of applying the…

A: Markup percentage based on variable cost=Desired profitVariable costs

Q: Bacon Mfg. has provided the following information. Units produced Units sold Selling price per unit…

A: Absorption costing and variable costing are two different methods used for allocating manufacturing…

Q: Mobile, Inc. manufactured 700 units of a new product A during the year. The variable cost of product…

A: Inventory forms a part of current assets of the entity and is included in the asset section of…

Q: Norenberg Corporation manufactures a variety of products. The following data pertain to the…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: The net operating income (loss) under absorption costing closest to:

A: One of the method by which the income statement of the company is prepared is through the absorption…

Q: Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company…

A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

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A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

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A: Let's understand the basics.When target income is given and calculation is needed for determining…

Q: Circetrax, Inc. has provided the following financial information for the year: Finished Goods…

A: Under the absorption costing, fixed manufacturing overhead is considered as a product cost and…

Q: Freshmart Inc. began operations last year when it produced and sold the same nuber of units. This…

A: Fixed overhead cost for 750 units = ($30,000 / 1,000) x 750 = $22,500

Q: GL produces and sells single product with a standard quality. An analysis of its costing records…

A: Break-even point in units:= Fixed cost / (Selling price per unit - Variable cost per unit)= 120,000…

Q: fit is $24.00 per unit. ermine the markup percentage using the (a) total cost, (b) product cost, and…

A: The markup is the excess amount charged as compared to product cost. The markup percentage is…

Q: 2. Using the contribution approach for analyzing segment profitability and assuming all else remains…

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Q: [The following information applies to the questions displayed below. Henna Company produces and…

A: Contribution margin is the part of income statement of a firm it shows profit of the firm after…

Q: Edifice Manufacturing Company produces and sells a single product. During the current year,…

A: Absorption and variable costing are two methods that are generally used by an organization to value…

Q: Year 1 Year 2 Units (spice racks) produced. Units (spice racks) sold Absorption costing net…

A: Fixed overhead deferred with inventory in year 1 = Net operating income under absorption costing -…

Q: Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: Comet Canisters, Inc. has collected the following data for the current year: Beginning Finished…

A: Absorption costing is a method of costing in which product cost is calculated by adding direct…

Q: The Southern Corporation manufactures a single product and has the following cost structure:…

A: Variable costing method is a method of costing in which product cost is calculated by adding direct…

Q: Answer the following question(s) using the information below. Jeppson Company manufactures computer…

A: Variable cost is that which vary according to the level of production.

Q: KALIBO CORP. prepared the following absorption-costing income statement for the year ended May 31,…

A: The income statement is prepared to record the revenues and expenses of the current period and…

Q: Total Per Unit % Sales $150,000 $30 ? Variable expenses ? ? ? Contribution margin ? ? ? Fixed…

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Q: Bent Tree incurred the following unit costs during the year: variable manufacturing cost, $27; fixed…

A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

Q: Two different product lines are manufactured and sold by Cheche Manufacturing Corp. Monthly fixed…

A: Income statement is a financial statement that shows your company's revenues and expenses . In other…

Q: Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During…

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Q: The following information is for a company that produced 10,000 units and sold 9,0000 units during…

A: Solution: The difference in variable cost and absorption is that of treatment of fixed manufacturing…

Q: Mazoon Company decided to use the high- low cost estimation method to analyze its mixed costs.…

A: Under high low method the highest activity cost and quantity is differentiated with the lowest…

Q: total cost

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A: Under the variable costing, fixed costs are taken as period costs and taken as a whole amount.…

Q: The Southern Corporation manufactures a single product and has the following cost structure:…

A: Ending inventory = Units produced - units sold = 6230 units - 6030 units = 200 units

Q: Bent Tree incurred the following unit costs during the year: variable manufacturing cost, $27; fixed…

A: The objective of this question is to calculate the total gross margin for Bent Tree. Gross margin is…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.