Olson manufactures a single product and sells it for $10 per unit. At the beginning of the year there were 1,000 units in inventory. Upon further investigation, you discover that units produced last year had $3.00 of fixed manufacturing cost and $2.00 of variable manufacturing cost. During the year Olson produced 10,000 units of product. Each unit produced generated $3.00 of variable manufacturing cost. Total fixed manufacturing cost for the current year was $40,000. There were no inventories at the end of the year.  This current year Absorption Costing Net Income is  Select one:  a.  $36,000   b.  $35,000   c.  $37,000   d.  $38,000

Q: What is the net operating income this year using the absorption costing method? Please prepare the…

A: 1. Calculate product cost per unit for absorption costing:  Product cost per unit = Variable cost…

Q: Required: 1. Determine the manufacturing cost per unit for each of the products using the…

A: Activity based costing is a system of cost accounting which takes into consideration the number of…

Q: Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce…

A: Inventory:There are different types of inventory levels in business. They are raw material, work in…

Q: ewham Corporation produces and sells two products. In the most recent month, Product R10L had sales…

A: The breakeven analysis depends on the contribution margin of the product which is calculated by…

Q: Mobile, Inc. manufactured 700 units of a new product A during the year. The variable cost of product…

A: Inventory forms a part of current assets of the entity and is included in the asset section of…

Q: Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2…

A: Variable cost Per unit:     Cost of goods sold 5.06  =(2590720*70%)/358400 Operating expenses…

Q: Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During…

A: Under the Variable costing method, only the variable direct material, direct labor and direct…

Q: Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: Samy Inc. operated at its normal capacity during the current year, producing 65,000 units of its…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Pierre Corporation manufactures a single product that it sells for $122 per unit. The company had…

A: Introduction: Product costs refer to all expenses incurred by the company in order to generate the…

Q: alcom Enterprises is planning to introduce a new product that will sell for $145 a unit…

A: Variable manufacturing is the term used to describe the tendency for fluctuations in the production…

Q: In its first year of operation, the Clayton Publishing Company sells 52,000 units and has 1,700…

A: The Cost of Goods Manufactured is the total manufacturing cost of goods that are finished during the…

Q: Bramble Corp. began the year with 10 units of marine floats at a cost of $12 each. During the year,…

A: First in first out: It refers to the method of inventory valuation that calculates the balance of…

Q: Perry Industries has an annual plant capacity of 72,000 units; cument production is 59,000 units per…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: Walsh Company manufactures and sells one product. The following information pertains to the…

A: The variable costing system is the method which only the variable cost for determining the operating…

Q: Conner's Fixtures produces and sells a single product, a specialized plumbing fixture. The business…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Craft Company produces a single product. Last year, the company had a net operating income of…

A: Step 1: Introduction to the Net Operating Income under Variable Costing v/s Absorption CostingThe…

Q: In 2012, Grant Co. sold 160,000 units of its product at a selling price of $40. The variable cost…

A: Profit = (Sales * PV ratiio ) - Fxed cost So, FIxed cost = ( Sales * PV ratio ) - Profit

Q: Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce…

A: Let us discuss about the concepts that have been discussed in this questionInventory turnover ratio:…

Q: Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced…

A: Income statement under variable costing are as follows

Q: In Year 1, a company sold 4000 units each of Product A and Product B. For products A and B the…

A: Operating income: The operating income is the amount after deducting the variable and fixed cost…

Q: Chandler Company sells its product for $108 per unit. Variable manufacturing costs per unit are $49,…

A: Under absorption costing, total cost incurred for manufacturing the product whether it is fixed cost…

Q: Plat Company operated at normal capacity during the current year producing 50,000 units of its…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or loss.…

Q: Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced…

A: Lets understand the basics. Generally entity follow one of the two costing methods. (1) Variable…

Q: Jayleen company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from…

A: Product with higher contribution margin per machine hour should be produced maximum in order to…

Q: Fidalgo Company makes stereo systems. During the year, Fidalgo manufactured and sold 75,700 stereo…

A: Total sales revenue refers to the total amount of money generated by a company from the sale of its…

Q: Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenue…

A: Breakeven is the point at which the entity is in a situation of no profit and no loss. It is neither…

Q: A company uses components at the rate of 15,000 units per year, which are bought in at a cost of…

A: Holding cost:-This cost incurred in carrying the inventory in-store, therefore it is also known as…