**Problem Statement:**Given Advanced Company's data, and the knowledge that the product is sold for $72 per unit and operating expenses are $310,000, compute the net income under absorption costing.**Multiple Choice Options:**- $226,800- $273,200- $165,200- $93,200- $72,000**Instructions for Solving:**To compute the net income under absorption costing, add all fixed and variable manufacturing costs to the cost of goods sold (COGS), subtract operating expenses, and apply any additional relevant financial data you may have. Once calculated, choose the correct answer from the multiple-choice options provided. **Required Information**_The following information applies to the questions displayed below._Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.| Units produced this year | 36,000 units ||---------------------------|-------------|| Units sold this year | 21,600 units || Direct materials | $20 per unit || Direct labor | $22 per unit || Variable overhead | $3 per unit || Fixed overhead | $180,000 in total |Given Advanced Company's data, and the knowledge that the product is sold for $72 per unit and operating expenses are $310,000, compute the net income under absorption costing.**Multiple Choice**- $226,800- $273,200- $165,200

Fixed overhead per unit =$180,000/36,000 Fixed overhead per unit = $5 per unit Unit product cost = $20 + $22 +$3 + $5 Unit product cost = $50Sales = 21,600*$72 Sales = $1,555,200 Cost of goods sold = 21,600*$50 Cost of goods sold = $1,080,000 Net operating income = Sales - Cost of goods sold - Operating expenses Net operating income = $1,555,200 - $1,080,000 - $310,000 Net operating income = $165,200

Business

Accounting

Required information [The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead 36,000 units 21,600 units 20 per unit 22 per unit 3 per unit $180,000 in total Given Advanced Company's data, and the knowledge that the product is sold for $72 per unit and operating expenses are $310,000, compute the net income under absorption costing. Multiple Choice $226,800 $273,200 $165,200

Required information [The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead 36,000 units 21,600 units 20 per unit 22 per unit 3 per unit $180,000 in total Given Advanced Company's data, and the knowledge that the product is sold for $72 per unit and operating expenses are $310,000, compute the net income under absorption costing. Multiple Choice $226,800 $273,200 $165,200

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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Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 105,000 units Units sold this year 63,000 units Direct materials $ 29 per unit Direct labor $ 31 per unit Variable overhead $ 3 per unit Fixed overhead $ 918,750 in total Belle Company's product is sold for $89 per unit a Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $370,000 per year. Compute the net income under variable costing.
74. Subject :- Accounting
The annual data that follows pertain to See It, a manufacturer of swimming goggles (the company had no beginning inventory): Sales price. . . . . . . . . . . . . . . . . . . . . . . . . $49 Variable manufacturing expense per unit. . $17 Sales commission expense per unit. . . . . . $9 Fixed manufacturing overhead. . . . . . . . . . $1,980,000 Fixed operating expenses. . . . . . . . . . . . . . $245,000 Number of goggles produced. . . . . . . . . . . 220,000 Number of goggles sold. . . . . . . . . . . . . . . 200,000 Requirements: 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for See It for the year. 2. Which statement shows the higher operating income? Why? 3. The company marketing vice president believes a new sales promotion that costs $150,000 would increase sales to 220,000 goggles. Should the company…
Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations: Prior Year Current Year Sales (000s) 2,300 units 3, 700 units Production (000s) 3,000 units 3,000 units Production cost Factory-variable (per unit) $ 0.60 $ 0.60 —fixed (000s ) $ 1,500 $1,500 Marketing-variable (per unit) $ 0.40 $ 0.40 Administrative-fixed (000s) $ 500 $ 500 Required: 1. Prepare an income statement for each year based on full costing. 2. Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.Complete this question by entering your answers in the tabs below. Required 1 Prepare an income statement for each year based on full costing. (Enter your answers in thousands of dollars.)