Larue Corporation manufactured 8,000 dolls in Year 1 without any sales. On December 31, Year 2, there were only5,000 dolls left unsold; no manufacturing occurred in Year 2. When compared to variable costing income, Larue'sabsorption costing income in Year 2 is Note: If there is no effect, leave the answer blank (zero) and select "No effect"from the drop down. Note 8,000 dolls are $72,000 manufacturing and 5,000 dolls are $60,000 non-manufacturing.

Larue's absorption costing income in Year 2 will be lower than variable costing income by…

Answered: Larue Corporation manufactured 8,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In the last reporting period, Harold's Hat Company recorded 100,000 units sold for the first time in the history of the company. The price per unit was $89.99 and variable costs per unit was $36.39. Compute the fixed costs if the operating income is $4,020,000. Do not use units in your final answer (i.e. $ or commas). Answer:
Mobile, Inc. manufactured 700 units of a new product A during the year. The variable cost of product A was $ 5.00 and the fixed cost per unit $ 2.00. The inventory at the end of the year, on December 31, was 100 units. There was no inventory of the product at the beginning of the year. What would be the change in inventory in dollars as of December 31 if we used the variable cost system instead of the absorption cost system?
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Crane, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,000 from sales $199,000, variable costs $174,000, and fixed costs $29,000. If the Big Bart line is eliminated, $19,000 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Sales $ $ Variable costs Contribution margin Fixed costs Net Income /(Loss) $ The Big Bart product line should be $ $
Polka King Gifts had the following costs in March when 400 ceramic statues were produced: materials, $4,200; labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. If production changes to 500 units and production still remains within the relevant range, which of the following costs will stay the same? A. Total variable cost B. Variable cost per unit C. Fixed cost per unit D. None of these answer choices is correct. E. Total cost per unit
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Chandler Company sells its product for $108 per unit. Variable manufacturing costs per unit are $49, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $17 per unit sold. Fixed administrative expenses total S104,000. Chandler had no beginning inventory for the year. During the year, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company be higher if calculated using variable costing or using absorption costing? Calculate reported income using each method. Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Fixed Costs Answer Less: Ending Inventory Answer Cost of Goods Sold Answer Answer Answer Answer Answer Administrative expense Answer Net Income Answer Variable Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Answer…
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Cohen Company produces and sells socks. Variable cost is $10.80 per pair, and fixed costs for the year total $109,800. The selling price is $18 per pair. Required: 1. Calculate the breakeven point in units. (Do not round intermediate calculations.) 2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.) 3. Calculate the units required to make a before-tax profit of $61,200. (Do not round intermediate calculations.) 4. Calculate the sales dollars required to make a before-tax profit of $51,480. (Do not round intermediate calculations.) 5. Calculate the sales, in units and in dollars, required to make an after-tax profit of $41,480 given a tax rate of 30%. (Do not round intermediate calculations. Round sales in units up to the nearest whole number and sales in dollars to the nearest whole dollar.)
last month a company's profit was $2000, calculated using absorption costing principles. if marginal costing principles has been used, a loss of $3000 would have occured. the company's fixed production cost is $2 per unit. sales last month were 10000 units. what was last month's production (in units)
How do i calculate the net income for a special order? For example: Blowing Sand Company has just received a one-time offer to purchase 10,200 units of its Gusty model for a price of $34 each. The Gusty model costs $36 to produce ($29 in variable costs and $7 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order.
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