Of the 12,000 units produced by Hirofumi Company during April 2022, 10,000 units were sold at P50 per unit. Production costs during the month were: Materials P80,000 Direct labor 100,000 Factory overhead: Fixed 60,000 Variable 72,000 General and administrative expenses, all fixed, totaled P120,000. Tax rate is 25%.

Q: Following GAAP, the income statement issued to in OA. be prepared in the contribution margin forma…

A: The three most important financial statements are enumerated as below:Income Statement Balance…

Q: what do i put for beginning inventroy #of units and cost per unit?

A: Perpetual Inventory System is a method of costing the ending inventory and the inventory sold. Under…

Q: Which of statements about the contribution income statement is correct? Group of answer choices

A: A contribution income statement is defined as the statement in which all the variable costs and all…

Q: Which of the following items would  not be found on a contribution format income statement?…

A: Cost-Volume-Profit analysis is the technique of managerial accounting, which examines that how…

Q: How was total cost (a) found for #1?

A: Total cost for any product or service is calculating by taking sum of variable cost of the total…

Q: Can you please explain what we mean by "Short-run" and "long-run" for decision-making in cost…

A: The executive management team of a corporation uses cost accounting to determine all variable and…

Q: Data Year 2 Quarter Year 3 Quarter 1 2 3 4. 1 Budgeted unit sales 40,000 60,000 100,000 50,000…

A: Income Statement is a part of financial statement showing the amount of net profit earned by a…

Q: Which of the following would not be a period cost? Group of answer choices Research and development…

A: Solution: Period cost is the cost that is expensed in the income statement and same is not…

Q: How do you get total of period cost?

A: Period Costs are not directly associated with the finished products manufactured, rather associated…

Q: Which of the following costs change in total directly and proportionately with respect to the…

A: The objective of the question is to identify the type of cost that changes in total directly and…

Q: Describe the specific process required by the unit cost comparison for the use of annual worth…

A: A unit cost comparison is required for the use of annual worth analysis because companies often…

Q: Draw up a marginal statement that calculates the contribution per uni

A: Marginal costing seems to be a costing method whereby all variable expenses are included in the…

Q: What does period cost include

A: Period costs are the expenses which are typically related to passage of time and not to any…

Q: Variable Costing, Absorption Costing During its first year of operations, Snobegon, Inc. (located in…

A: Under Variable Costing, Contribution margin = Sales - Variable cost Operating Income = Contribution…

Q: Define the term Annual operating cost:?

A: MEANING OF OPERATING COST The sum total of operating expenses and cost of goods sold is called…

Q: What is the Total equivalent annual cost?

A: Equivalent annual cost (EAC) is the annual cost of claiming, overseeing, and supporting an asset…

Q: Annual equivalent cost (AEC),

A: The Annual Equivalent Cost (AEC) is the annual cost of acquiring an asset over its entire life. The…

Q: Which of the following equations is correct for determining the required sales in units to generate…

A: Pretax income, also known as earnings before tax or pretax earnings, is the net income earned by a…

Q: How does a contribution margin income statement differ from a traditional income statement?

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: prepare an income statement for last year using variable costing

A: Using variable costing, the contribution margin is calculated as the difference between the sales…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.