Freshmart Inc. began operations last year when it produced and sold the same nuber of units. This year, the company produced 1,000 units and sold 750 units at a selling price of $100 per unit. Fixed overhead costs totaled $30,000 and fixed selling and administrative expenses were $15,000. Variable production costs were $25.00 per unit while variable selling and administrative expenses were $10.00 per unit. Using absorbtion costing, net income was: A. $3,750 B. $11,250 C. $20,000 D. $48,750

Q: Cullumber Company operates a small factory in which it manufactures two products: C and D.…

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

Q: Abdulwahab Corporation is estimating the cost function for total cost of production of product A…

A: Variable cost is the cost which changes with change in production volume and fixed cost is the cost…

Q: Trez Company began operations this year. During this year, the company produced 100,000 units and…

A: The income statement is an essential part of the financial statements of the company. Indicates…

Q: a.  Imelda Company budgets sales of $850,000, fixed costs of $19,100, and variable costs of $85,000.…

A: SOLUTION:   Contribution Margin Ratio: Contribution Margin Analysis is a technique of cost volume…

Q: . If the company uses absorption costing, compute gross profit assuming (a) 12,800 units are…

A: In absorption costing the fixed overhead costs is allocated  to all units produced for an accounting…

Q: Northern, Inc. just finished its second year of operations. In the first year it produced 1,000…

A: Total production costs = Total Variable production costs + Fixed manufacturing overhead where, Total…

Q: shmart, Inc., began operations this year. The company produced 1,000 units and sold 1,000 units at a…

A: Solution: Net income under absorption costing will be computed by first determining gross profit and…

Q: Last month, Laredo Company sold 570 units for $85 each. During the month, fixed costs were $5,814…

A: Given, Selling price = $85 Variable cost per unit = $51 Fixed costs = $5,814

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: A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (23,000…

A: Break-even point: The break-even point refers to the situation of the organization where neither…

Q: Sandhill sells two products: Standard and Deluxe. The company had sales of $810000 during the…

A:

Q: Trez Company began operations this year. During this year, the company produced 100,000 units and…

A: The income statement includes all the revenue and expenses. The resulting amount after deducting…

Q: ​Bethel, Inc. has collected the following data.​ (There are no beginning​ inventories.)   Units…

A: Step 1 Sales is $58,500 which is obtained by multiplying the number of units sold of 450 units by…

Q: A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable…

A: Income Statement:Income statement consists of the part of financial statements, prepared to know…

Q: Orion recently reported sales revenues of $800,000, a total contribution margin of $300,000, and…

A: Total variable cost=Sales-Contribution=$800,000-$300,000=$500,000

Q: A company produces a single product. Last year, fixed manufacturing overhead was $25,000, variable…

A: Formula: Net income = Total Revenues - Total expenses.

Q: last month a company's profit was $2000, calculated using absorption costing principles. if marginal…

A: The objective of the question is to find out the production units of the company last month. The…

Q: Consider the following sales and cost data for Van Buren Company. The total sales and cost…

A: Lets understand the basics. Contribution margin is a margin generated from the sales. In other…

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

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Carolina Corporation, which uses throughput costing, began operations at the start of the current…

A: Total cost is the amount of money incurred by the entity on the making and selling of the goods. It…

Q: Please Provide Correct Answer

A:

Q: g overhead costs releasec nted to $23,500. What w come last year?

A: Answer : Net Operating income using absorption costing : Net Operating income Under  Variable…

Q: Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come up with…

A: The objective of the question is to calculate the controllable margin and the total contribution by…

Q: Trez Company began operations this year. During this year, the company produced 100,000 units and…

A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…

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A: Absorption costing is a method of costing that takes into account all manufacturing costs.…

Q: rez Company began operations this year. During this year, the company produced 100,000 units and…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: Vaughn, Incorporated, sold 16,000 units last year for $120.00 each. Variable costs per unit were…

A: The cost or profit per unit of a product earned prior to any variable costs is known as the…

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: Sales (5,000 units) ariable expenses: Cost of goods sold Selling (10% of sales) Contribution margin…

A: Using absorption costing, the fixed manufcaturing overhead costs are also included in the product…

Q: Ellie Manufacturing Company produces three products: A, B, and C. The income statement for the most…

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

Q: ​Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced…

A: Answer:   “Option c”.

Q: Variable and Absorption Costing Chandler Company sells its product for $108 per unit. Variable…

A: The income statement is the financial report and every business produces these reports to know the…

Q: In the last reporting period, Global Tech Company recorded 140,000 units sold for the first time in…

A: The contribution margin is calculated by subtracting the variable cost per unit from the selling…

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.