TechSolutions Inc. reported a variable costing net income of $95,000 for the current year. The fixed manufacturing overhead cost deferred to inventory under absorption costing was $23,000. What is TechSolutions' net income using absorption costing?

TechSolutions Inc. reported a variable costing net income of $95,000 for the current year. The fixed manufacturing overhead cost deferred to inventory under absorption costing was $23,000. What is TechSolutions' net income using absorption costing?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 9E: The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the...

See similar textbooks

Related questions

Q: Can you please solve this financial accounting question?

A: To calculate the Profit Margin and Gross Profit Margin for Landon's Lawn Service for 2023, use the…

Q: Hi expert please given correct answer with accounting question

A: New Dividend Per Share = Current Dividend + Increase in dividendNew Dividend Per Share =…

Q: I need financial accounting question answer

A: To find the credit sales for March, we can use the following formula:Closing Debtors = Opening…

Q: I need the correct answer to this financial accounting problem using the standard accounting…

A: Step 1: Definition of Book ValueBook Value of an asset is the value recorded in the accounting…

Q: Please explain the correct approach for solving this general accounting question.

A: To calculate ABC Manufacturing's realized gain or loss on the sale of equipment, follow these…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Definition of Accounts Receivable Days OutstandingAccounts Receivable Days Outstanding, also…

Q: Please provide the answer to this general accounting question with proper steps.

A: Step 1: Definition of Operating ExpensesOperating expenses are the costs associated with running the…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: Step 1: Definition of EquityEquity is the ownership interest in a business after all liabilities are…

Q: None

A: Concept of Raw Materials Used:Raw materials used refer to the cost of materials that are actually…

Q: I need help with accounting question

A: Option a: 52.3 days is incorrect Average collection period = 52.3 days Wrong average accounts…

Q: Can you demonstrate the accurate method for solving this financial accounting question?

A: Step 1: Definition of P/E RatioThe Price-to-Earnings (P/E) Ratio is a financial metric that compares…

Q: Need answer

A: Step 1: Calculate Earnings Per Share (EPS)The Earnings Per Share (EPS) is computed using the…

Q: Give me Answer

A: page 1page 2

Q: How can I solve this financial accounting problem using the appropriate financial process?

A: Step 1: Definition of Times Interest Earned (TIE) RatioThe Times Interest Earned (TIE) Ratio…

Q: Accounting answer please

A: Step 1: Definition of Product Warranty ExpenseProduct Warranty Expense is the estimated cost a…

Q: Please provide the solution to this general accounting question using proper accounting principles.

A: To determine the cash received from the sale, we use the following formula: Book Value of Equipment…

Q: Can you show me the correct approach to solve this financial accounting problem using suitable…

A: Step 1: Definition of Preferred Dividends and Common DividendsPreferred dividends are fixed…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: To compute the absorption cost per unit, we include:Direct laborDirect materialsVariable…

Q: Please help me solve this general accounting problem with the correct financial process.

A: Step 1: Definition of Realized Gain or LossA realized gain or loss occurs when an asset is sold, and…

Q: What is the amount of total assets at the present time?

A: Explanation of Assets :Assets are economic resources owned or controlled by a business that are…

Q: Hello tutor please provide answer this general accounting question

A: Step 1: Introduction to CVP AnalysisCVP analysis, or cost-volume-profit analysis, is a management…

Q: subject general accounting

A: Dividend Yield = Dividend Per Share/Share Price Dividend Yield = 0.60/34 Dividend Yield = 1.8%

Q: Gross profit rate must be what?

A: To calculate Cost of Goods Sold (COGS) and Gross Profit Rate, we use the following formulas: 1. Cost…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Definition of Underwriter's SpreadThe underwriter's spread is the difference between the…

Q: The balance sheets of Buffett Industries reported net fixed assets of $910,000 at the end of Year 1…

A: Step 1: DefinitionsConcept of Fixed-Asset Turnover Ratio:Fixed-Asset Turnover Ratio measures how…

Q: Please provide the accurate answer to this general accounting problem using appropriate methods.

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) measures a company's ability to…

Q: Vampire Co. reports total sales of $610,000. Variable costs are 58% of sales, and fixed costs are…

A: To calculate the contribution margin ratio, use the formula: Contribution Margin Ratio = (Sales -…

Q: Question No. 14

A: Provided Data:Sale Price of Asset = $142,500Book Value of Asset = $168,000Marginal Tax Rate =…

Q: Please provide the correct answer to this financial accounting problem using accurate calculations.

A: To find the market value of shareholders' equity, we use the formula:Shareholders' Equity = Market…

Q: None

A: To compute the current income tax expense, we only consider permanent differences to adjust the…

Q: I need help solving this general accounting question with the proper methodology.

A: Step 1: Definition of Profit Margin RatioThe Profit Margin Ratio is a key financial metric used to…

Q: Please help me solve this general accounting question using the right accounting principles.

A: Step 1: Definition of Total Manufacturing CostTotal Manufacturing Cost refers to the total expenses…

Q: I need help with this general accounting question using the proper accounting approach.

A: Step 1: Definition of Net SalesNet sales refer to a company's total revenue from sales after…

Q: General accounting

A: Step 1: Definition of Gross ProfitGross Profit is the difference between sales revenue and the cost…

Q: I need help solving this general accounting question with the proper methodology.

A: Step 1: Define Total Manufacturing Cost Total manufacturing cost is the sum of direct materials,…

Q: Determine the rate earned on total assets

A: Step 1: Definitions Concept of Rate Earned on Total Assets:Rate Earned on Total Assets, also known…

Q: I am searching for the accurate solution to this general accounting problem with the right approach.

A: Step 1: Definition of GoodwillGoodwill is an intangible asset that arises when one company acquires…

Q: Please explain this financial accounting problem by applying valid financial principles.

A: Step 1: Define Net Cash from Operating ActivitiesNet cash from operating activities is calculated…

Q: Provide correct solution and accounting question

A: To find the level of accounts receivable, we use the formula:Accounts Receivable = DSO × Average…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: To calculate Boone's operating leverage, we use the degree of operating leverage (DOL) formula:…

Q: Can you help me solve this financial accounting question using the correct financial procedures?

A: Step 1: Definition of Direct and Indirect WagesDirect wages are expenses that can be directly traced…

Q: I am trying to find the accurate solution to this general accounting problem with the correct…

A: Step 1: Definition of Gross Profit MarginThe gross profit margin is a key financial metric used to…

Q: The canon of _________ advocates that a tax has to be contrived as a mechanism that takes as little…

A: The question is asking us to identify the canon of taxation that advocates for a tax system that…

Q: Calculate gross profit ratio

A: Step 1: Definition of Gross Profit and Gross Profit RatioGross Profit is the difference between net…

Q: I need assistance with this general accounting question using appropriate principles.

A: Step 1: Definition of EquityEquity, also referred to as shareholders' equity or owner's equity,…

Q: Can you solve this general accounting problem using appropriate accounting principles?

A: Step 1: Definition of Total CostTotal cost in a job cost sheet refers to the sum of all the direct…

Q: Shri Manufacturing has estimated total factory overhead costs of $625,000 and 25,000 direct labor…

A: Explanation of Predetermined Overhead Rate:A predetermined overhead rate is calculated at the…

Q: Beacon Manufacturing has $85,000 in assets. They also have $32,000 in liabilities and $8,500 in…

A: We're given the extended accounting equation:Assets = Liabilities + (Revenue - (Expenses +…

Q: How much is May's total cost of production?

A: Explanation of Production Budgeting:Production budgeting is the process of planning how many units a…

Q: Solve this Accounting Problem

A: To compute the Price-Earnings (P/E) Ratio, use the formula: P/E Ratio = Market Price per Share /…

Question

Can you solve this general accounting problem using accurate calculation methods?

TechSolutions Inc. reported a variable costing net income of
$95,000 for the current year. The fixed manufacturing overhead
cost deferred to inventory under absorption costing was $23,000.
What is TechSolutions' net income using absorption costing?

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
The following information pertains to Vladamir, Inc., for last year: There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is 29. Prepare an income statement using (a) variable costing and (b) absorption costing.
On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: If the fixed manufacturing costs were 450,000 and the fixed selling and administrative expenses were 165,000, prepare an income statement according to the variable costing concept.
At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
The following data were adapted from a recent income statement of The Procter Gamble Company (PG): Assume that the variable amount of each category of operating costs is as follows: a. Based on the data given, prepare a variable costing income statement for Procter Gamble, assuming that the company maintained constant inventory levels during the period. b. If Procter Gamble reduced its inventories during the period, what impact would that have on the operating income determined under absorption costing?
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and sold 12,000 units. The following income statement was prepared, based on the variable costing concept: Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
What are the total costs to account for if a companys beginning inventory had $231,432 in materials, $186,450 in conversion costs, and added direct material costs ($4,231,392), direct labor ($2,313,392), and manufacturing overhead ($1,156,696)?