Freshmart, Inc., began operations this year. The company produced 1,000 units and sold 1,000 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 absorption costing, net income was:

Q: Aces inc, a manufacturer of tennis rackets, began operations this year. The company produced 6,200…

A: Under variable costing, only variable manufacturing costs (like Direct materials, Direct Labor,…

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: Salley Corporation produces a single product.Last year, the company had net operating income of…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: Amarantha Corp. has provided the following data for the current year. Units Produced 2,500 units…

A: Unit product cost means the cost incurred on the making of each unit of product during the…

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: The variable cost per unit remains constant at every level of production and total fixed costs…

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: 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: Bright Force Inc. produces and sells lightning fixtures. An entry light has a total cost of $90 per…

A: Mark up % is % of Mark up  over product cost

Q: David Ltd manufactures and sells a single product. The standard selling price per unit is $120. The…

A: MARGINAL COSTING INCOME STATEMENT  Marginal Costing Income Statement is One of the Important Cost…

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: 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: What exactly is a genuine account?

A: Genuine account: Genuine account is generally referred to as a real account. Real accounts are…

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

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

Q: Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost…

A: Manufacturing costs refer to the cost incurred in producing the goods. The manufacturing costs are…

Q: Bakan Corporation has provided the following production and average cost data for two levels of…

A: The variable manufacturing cost per unit is the manufacturing cost that changes with the number of…

Q: Magpie Corporation uses the total cost method of product pricing. Below is cost information for the…

A: The contribution margin is computed as the selling price per unit, minus the variable cost per unit.…

Q: The following information is available for X Co. for its first year of operations: Sales in units…

A: Using absorption costing, the fixed costs are deferred in ending inventory and released from…

Q: I need help

A: We have:Net income based on variable costing: $780,200Fixed overhead per unit (beginning and ending…

Q: Barnes Company reports the following for its product for its first year of operations.   Direct…

A: Contribution. Margin: "Contribution margin tells you the aggregate amount of revenue available after…

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…

Q: Vaughn Company incurred the following costs during the year: direct materials $21.10 per unit;…

A: Lets understand the basics.Costing statement can be prepared using,(1) Variable costing(2)…

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: Vernon Manufacturing Company established the following standard price and cost data $9.00 per unit $…

A: Flexible BudgetA flexible budget is a financial instrument that allows businesses and organisations…

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: Kogler Corporation's evant range of activity is 7,000 units to 11,000 units. When it produces and…

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

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: ridewater Company uses the product cost concept of applying the cost-plus approach to product…

A: Product cost concept  The costs incurred in the manufacturing of a product are referred to as its…

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: Ming Company had a net income of $780,200 based on variable costing. Beginning and ending…

A: To determine the net income under absorption costing, we need to account for the fixed overhead…

Q: Event Company produces a single product with the following characteristics: price per unit $24.00,…

A: Sales required to earn desired or target profit is calculated by dividing the sum of total fixed…

Q: Masley Corporation has provided the following data for its two most recent years of operation:…

A: Formula: Total product cost under variable costing = Direct materials + Direct labor +  Variable…

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…

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.