am.111. Required information[The following information applies to the questions displayed below.]Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,350 racketsand sold 5,080. Each racket was sold at a price of $90. Fixed overhead costs are $82,550 per year, and fixed selling andadministrative costs are $66,000 per year. The company also reports the following per unit variable costs for the year.Direct materialsDirect laborVariable overheadVariable selling and administrative expensesPrepare an income statement under absorption costing.ACES INCORPORATEDIncome Statement (Absorption Costing)0$0$ 1282

We start with the sales. Simply multiply the units sold by the selling price per unit.Units…

Answered: Required information [The following…

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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Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,650 rackets and sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling and administrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses QS 19-4 (Algo) Variable costing income statement LO P2 Prepare an income statement under variable costing. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Fixed selling and administrative expenses Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Fixed overhead Variable…
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Aces inc, a manufacturer of tennis rackets, began operations this year. The company produced 6,200 rackets and sold 5,100. Each racket was sold at a price of $92. Fixed overhead costs are $81,840, and fixed selling and administrative costs are $65,400. The company also reports the following per unit variable costs for the year: Variable product costs Variable selling and administrative expenses $ 25.20 $ 2.20 Prepare an income statement under varlable costing. ACES INC. Variable Costing Income Statement Net income (loss)
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,550 rackets and sold 5,680. Each racket was sold at a price of $90. Fixed overhead costs are $98,150 per year, and fixed selling and administrative costs are $68,400 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses $ 12 2852 Prepare an income statement under absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) 0 $ 0
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Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,450 rackets and sold 5,630. Each racket was sold at a price of $90. Fixed overhead costs are $96,850 per year, and fixed selling and administrative costs are $68,200 per year. The company also reports the following per unit variable costs for the year. Direct materials $ 12 Direct labor 8 Variable overhead 5 Variable selling and administrative expenses 2
During its first year of operations, Silverman Company paid $9,160 for direct materials and $9,700 for production workers' wages. Lease payments and utilities on the production facilities amounted to $8,700 while general, selling, and administrative expenses totaled $4,200. The company produced 5,300 units and sold 3,200 units at a price of $7.70 a unit. What is Silverman's cost of goods sold for the year? Multiple Choice O $27,560 $13,923 $16,640 $23,060
Data for Hermann Corporation are shown below: (See image attached) Fixed expenses are $87,000 per month and the company is selling 2,900 units per month. Required: 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used?
Let's say that ABC company manufactures and sells 20,000 units of its product yearly. A single product includes these costs: Direct materials: $3 per unit Direct labor: $5 per unit Variable manufacturing overhead: $2 per unit Fixed manufacturing overhead: $35,000 per year, which computes to a $1.75 per unit cost ($35,000/20,000 annual units) Can you explain what the per unit cost of the product would be under the Absorption and Variable costing methods?
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,850 rackets and sold 5,830. Each racket was sold at a price of $90. Fixed overhead costs are $102, 050 per year, and fixed selling and administrative costs are $69,000 per year. The company also reports the following per unit variable costs for the year. Direct materials $ 12 Direct labor 8 Variable overhead 5 Variable selling and administrative expenses 2 Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Cost of goods sold Variable cost of goods sold Variable selling and administrative expenses Fixed overhead Gross profit Less: Fixed expenses Variable selling and administrative expenses Fixed selling and administrative expenses Variable cost of goods sold Income x X X $ 69,960 46,640 X 75,790 X $ 11,660 X 69,000 $ 524,700 192,390 303,160 80,660 $ 222,500X
AlphaBrona Industries manufactures 50,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $ 80,000 Direct labor 100,000 Variable overhead 30,000 Fixed overhead 60,000 Total $270,000 An outside supplier has offered to sell the component to AlphaBrona for $10 per unit. Fixed costs will remain the same if the component is purchased from an outside supplier. What will be the effect on income if AlphaBrona Industries purchases the component from the outside supplier? a. $290,000 decrease b. $290,000 increase c. $45,000 decrease d. $45,000 increase
The following information for the past year for the Blaine Corporation has been provided: Fixed costs: Manufacturing $130,000 Marketing 18,000 Administrative 21,000 Variable costs: Manufacturing $113,000 Marketing 35,000 Administrative 38,000 During the year, the company produced and sold 60,000units of product at a selling price of $19.19 per unit. There was no beginning inventory of product at the beginning of the year. What is the contribution margin for the year?

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