mpany reports the following information for August:Net Sales Revenue:$835,000Variable Cost of Goods Sold:364,000Fixed Cost of Goods Sold:188,000Variable Selling and Administrative Costs175,000Fixed Selling and Administrative Costs82,000For this company, under absorption costing, Gross Profit isO $296,000O $253,000O $317,000O $283,000O $471,000

Absorption costing considers all costs of manufacturing as product costs irrespective of the nature…

Answered: Net Sales Revenue: Variable Cost of…

Net Sales Revenue: Variable Cost of Goods Sold: Fixed Cost of Goods Sold: Variable Selling and Administrative Costs Fixed Selling and Administrative Costs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Weighted average cost per unit = per unit. Cost Cost of Goods Allocation Cost of Goods Sold Ending…

A: Sales = (50 units x $120) + (25 units x $125) = $6000 + $3125 = $9125 Cost of Goods Available = (100…

Q: Contribution margin per unit is the amount by which a products unit selling price exceeds its…

A: Contribution margin:- Contribution margin Indicates how much money is left after variable costs are…

Q: Happy Trails has the following information for its manufacturing: Direct Materials $16 Direct Labor…

A: Cost of goods available for sale = Beginning Inventory + Cost of goods manufactured Cost of goods…

Q: Prepare an analysis of the sales quantity and unit price factors did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

Q: You are provided with the following information for Concord Inc. for the month ended June 30, 2020.…

A: The inventory can be valued using various methods: 1. FIFO 2. LIFO 3. Weighted average method

Q: Which of the following relate(s) to gross profit margin? O a. the profit margin after subtracting…

A: Gross Profit Margin is a crucial financial metric that provides insights into a company's…

Q: Sales commissions incurred based on units of product sold during a given period is an example of a…

A: The product costs are the cost that are incurred to produce a product directly or indirectly.

Q: a. Total product cost a. Average cost per unit b. Cost of good sold c. Ending inventory d. Net…

A: Working note:Calculation of depreciation on manufacturing equipment:Depreciation = (cost - salvage…

Q: How to calculate total selling expense

A: Selling expenses are the expenses incurred to sell a product to the customer.

Q: is computed as: ting income minus operating expenses. revenue minus cost of goods sold. materials…

A: The income statement is prepared to record the revenue and expenses for the current period. The net…

Q: 8. The difference between total sales in dollars and total cost of goods sold is called: A. net…

A: When the total cost of goods sold is subtracted from the total sales in dollar, we arrive at the…

Q: : The difference between total sales revenue and total cost of goods sold is the Group of answer…

A: Trade margin = Total sales revenue - Total cost of goods sold

Q: Sales commissions incurred based on units of product sold during a given period is an example of a…

A: Please check the step 2

Q: A traditional income statement focuses on distinguishing product costs and period costs, while a…

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

Q: Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either…

A: Cost volume profit analysis (CVP Analysis) helps the business entity in determining the impact on…

Q: Appliance Apps has the following costs associated with its production and sale of devices that allow…

A: The income statement is prepared to estimate the net income or loss incurred during the period.

Q: East Coast West Coast Sales V Variable cost of goods sold v Manufacturing margin v Variable selling…

A: Contribution means sales minus varibale cost and when we divide contribution with sale , we get…

Q: What are the main differences between a perpetual system and a periodic system? In your…

A: In accounting, there may be different methods to record a financial transaction. The selling and…

Q: The of each product's sales to. O selling price, profit O unit price, expense O ratio, total sales O…

A: Sales mix refers to the combination or proportion of different products or services that a company…

Q: Using the given data…find the answers for Formulas 1-10. Sales Variable manufacturing cost Fixed…

A: Sales = Selling price per unit * number of sold units = 30*80000 = $24,00,000 Variable manufacturing…

Q: Ouration: SO man. Total sales revertue is found by the following formula: a. sales price x quantity…

A: Sales are the cornerstone of any organization, serving as the primary driver of revenue and…

Q: On a traditional income statement, sales revenue less cost of goods sold equals Question 26…

A: The income statement is prepared to find net income or losses incurred during the period.

Q: Contribution margin is it Sales less cost of goods sold or Sales less all variable and fixed…

A: First of all: Sales less Cost of goods sold will give us the gross profit earned from sales. Sales…

Q: Contribution margin per unit is the amount by which a product's unit selling price exceeds its…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods.…

Q: Which of the following methods is used to determine the sales volume necessary to achieve a target…

A: Cost-volume-profit (CVP) is one method in a way to find out how much change in variable and fixed…

Q: Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on…

A: Cost volume profit analysis is designed for profit forecasting at varying levels of sale volume and…

Q: The gross margin estimation method estimates the cost of goods sold by O multiplying the costs to…

A: Gross Margin Estimation Methods for Cost of Goods Sold (COGS) are financial techniques used to…

Q: Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit…

A: Cost of goods sold means cost incurred on goods or cost of goods that are being offered for sale to…

Q: Gross profit will result if: O Sales revenues are greater than operating expenses. Operating…

A: Gross profit is the excess of the sales revenue over the cost of goods sold

Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…

A: Cost volume profit analysis - generally cost volume profit analysis is used to determine the…

Q: The approach that requires the transfer price to be less than the market price but greater than the…

A: Standard cost is the cost that has been fixed by the company at the beginning of the period.…

Question

mpany reports the following information for August:
Net Sales Revenue:
$835,000
Variable Cost of Goods Sold:
364,000
Fixed Cost of Goods Sold:
188,000
Variable Selling and Administrative Costs
175,000
Fixed Selling and Administrative Costs
82,000
For this company, under absorption costing, Gross Profit is
O $296,000
O $253,000
O $317,000
O $283,000
O $471,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of rising prices? Select one: a. Weighted Average b. FIFO c. LIFO
A multi- step income statement ___________. A. Seperates cost of goods sold from operating expenses. B. Considers imterest revenue an operating activity. C. Is another name for a simple income statement. D. Combines cost of goods sold and operating expenses.
Dog
You have the following information for Wildhorse Gems. Wildhorse uses the periodic system of accounting for its inventory transactions. Wildhorse only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. March 1 March 31 March 5: March 10- March 25 Beginning inventory 150 diamonds at a cost of $320 per diamond. Purchased 200 diamonds at a cost of $360 each. Sold 180 diamonds for $630 each. Purchased 350 diamonds at a cost of $385 each. Sold 395 diamonds for $680 each.
Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) Continue LA $ Eliminate LA Net Income Increase (Decrease)
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $121,000 61,000 7,600 111,000 24,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $46,000 15,000 22,000 36,000 51,000 Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 at December 31.
An analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs. A B 1. 2 Profit per Unit 8 3 Quantity |10,100 4 Gross Profit 5 6 Total Costs 6,100 7 8 Net Profit With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells? Cell Value Gross Profit Net Profit
On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total Revenues Line represents profit. TRUE FALSE
Which of the following statements correctly complete the sentence:"Gross Margin equals":I. sales revenue less (minus) cost of goods sold.II. contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV. sales revenue less (minus) cost of goods manufactured.