Please provide correct answer this question general accounting McArthur Corp., which began business at the start of the current year, hadthe following data:Planned and actual production: 40,000 unitsSales: 38,000 units at $15 per unitProduction costs:Variable: $5 per unitFixed: $260,000Selling and administrative costs:Variable: $1 per unitFixed: $32,000The gross margin that the company would disclose on an absorption-costingincome statement is:a. $0b. $133,000c. $166,500d. $342,000

Step 1: Define Absorption CostingAbsorption costing is a costing method that generally accepted…

Answered: McArthur Corp., which began business at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Smith, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $260,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The gross margin that the company would disclose on an absorption- costing income statement is: A. $97,500. B. $147,000. C. $166,500. D. $370,000. E. some other amount.
McArthur Corp., which began business at the start of the current year, had the following data: Planned and actual production: 50,000 units • Sales: 45,000 units at $20 per unit • Production Costs: • Variable: $7 per unit • Fixed: $300,000 Selling and Administrative Costs: • Variable: $2 per unit Fixed: $40,000 What is the gross margin that the company would disclose on an absorption-costing income statement? a. $315,000 b. $157,500 c. $225,000 d. $450,000
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Patchi, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at ₱15 per unit Production costs: Variable: ₱4 per unit Fixed: ₱260,000 Selling and administrative costs: Variable: ₱1 per unit Fixed: ₱32,000 The contribution margin that the company would disclose on an absorption-costing income statement is: A. ₱0 B. ₱147,000 c. ₱166,500 D. ₱370,000
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The following data were taken from the first year absorption based accounting records of Stan Corp.. Total fixed costs incurred, P100,000 Total variable costs incurred, P50,000 Total period costs incurred, P70,000 Total variable period costs incurred, P30,000 Units produced, 20,000 Units sold, 12,000 Unit sales price, P 12.00 If Stan Corp had used variable costing in first year of operations, how much income/loss before tax would it have reported?
Roberts Corp., which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $260,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The contribution margin that the company would disclose on a variable-costing income statement is: a. $97,500 b. $147,000 c. $166,500 d. $370,000 e. None of the other answers are correct.
The following data relate to Lobo Corporation for the year just ended: Sales revenue $750,000 Cost of goods sold: Variable portion 370,000 Fixed portion 110,000 Variable selling and administrative cost 50,000 Fixed selling and administrative cost 75,000 Which of the following statements is correct? A. Lobo’s variable-costing income statement would reveal a gross margin of $270,000. B. Lobo’s variable costing income statement would reveal a contribution margin of $330,000. C. Lobo’s absorption-costing income statement would reveal a contribution margin of $330,000. D. Lobo’s absorption costing income statement would reveal a gross margin of $330,000. E. Lobo’s absorption-costing income statement would reveal a gross margin of $145,000.
Company A has the following documents: - Unit production cost 1,000 VND/product (including variable production cost 800 VND/product); - Sales and corporate management expenses are 500 VND/item (in which variable sales and corporate management costs are 120 VND/item); - Production level in the period is 2,000 products; Consumption during the period is 1,500 products. Total fixed costs for the period are (note that production prices are calculated based on production level, selling costs are calculated based on consumption level): a. 970.000₫ b. 870.000 d 1.060.000₫ d. 1.160.000₫
Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (440,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin. Fixed costs Fixed overhead Fixed general and administrative Income Per Unit $15.00 2.00 4.00 2.50 6.50 2.00 1.50 $ 3.00 (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Required A Required B Annual Total $ 6,600,000. 880,000 1,760,000 1,100,000 2,860,000 The company receives a special offer for 44,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $176,000 and incremental fixed general and administrative costs of $189,000. 880,000 660,000 $ 1,320,000 Complete this question by entering your answers in the tabs below.
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The following information is available from the accounting records of Eva Corporation. Fixed costs per period are $4800. Sales volume for the last period was $19,360, and variable costs were $13,552. Capacity per period is a sales volume of $32,000. Compute the total contribution margin.

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