The annual data that follow pertain to Carl's Crazy Eyewear, a manufacturer of swimming goggles. (Carl's Crazy Eyewear had no beginning Finished Goods Inventory in January.)(Click the icon to view the data.)Read the requirements.Data tableNumber of goggles producedNumber of goggles soldSales price per unitVariable manufacturing cost per unitSales commission cost per unitFixed manufacturing overheadFixed selling and administrative costsPrintDone$235,000195,0003073940,000230,000Requirements1. Prepare both conventional (absorption costing) and contribution margin(variable costing) income statements for Carl's Crazy Eyewear for the yearended December 31.2. Which statement shows the higher operating income? Why?3. Carl's Crazy Eyewear's marketing vice president believes a new salespromotion that costs $360,000 would increase sales to 225,000 goggles.Should the company go ahead with the promotion? Give your reasoning.PrintDone- Xember 31. (Round intermediary

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Description: The annual data that follow pertain to Carl's Crazy Eyewear, a manufacturer of swimming goggles. (Carl's Crazy Eyewear had no beginning Finished Goods Inventory in January.)(Click the icon to view the data.)Read the requirements.Data tableNumber of

The income statement records the revenues and expenses for the period. The income statement tells…

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The annual data that follow pertain to Carl's Crazy Eyewear, a manufacturer of swimming goggles. (Carl's Crazy Eyewear had no beginning Finished Goods Inventory in January.) (Click the icon to view the data.) Read the requirements. Data table Number of goggles produced Number of goggles sold Sales price per unit Variable manufacturing cost per unit Sales commission cost per unit Fixed manufacturing overhead Fixed selling and administrative costs Print Done $ 235,000 195,000 30 7 3 940,000 230,000 Requirements 4 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Carl's Crazy Eyewear for the year ended December 31. 2. Which statement shows the higher operating income? Why? Carl's Crazy Eyewear's marketing vice president believes a new sales promotion that costs $360,000 would increase sales to 225,000 goggles. Should the company go ahead with the promotion? Give your reasoning Print Done - X ember 31. (Ro

The annual data that follow pertain to Carl's Crazy Eyewear, a manufacturer of swimming goggles. (Carl's Crazy Eyewear had no beginning Finished Goods Inventory in January.) (Click the icon to view the data.) Read the requirements. Data table Number of goggles produced Number of goggles sold Sales price per unit Variable manufacturing cost per unit Sales commission cost per unit Fixed manufacturing overhead Fixed selling and administrative costs Print Done $ 235,000 195,000 30 7 3 940,000 230,000 Requirements 4 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Carl's Crazy Eyewear for the year ended December 31. 2. Which statement shows the higher operating income? Why? Carl's Crazy Eyewear's marketing vice president believes a new sales promotion that costs $360,000 would increase sales to 225,000 goggles. Should the company go ahead with the promotion? Give your reasoning Print Done - X ember 31. (Ro

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Accounting Addidas sells shoes at $55 per pair. The following data are related to its 2022 operation: Items Year 2022 Sales 95,000 unit Beginning inventory 20,000 unit Production 85,500 unit Ending inventory 10,500 unit Variable manufacturing cost per unit $20 Fixed manufacturing overhead costs $2,000,000 per year Denominator machine hours 1800 Standard production rate 50 units per machine hour Variable operating expenses $5 per unit Fixed selling and administration expenses $100,000 per year Assumption: The standard cost per unit is same for units in beginning and unit produced during the year and no price, spending or efficiency variance. Required:a. Prepare income statements for year 2022 using absorption costing.b. Prepare income statements for year 2022 using variable costing.c. Explain why the income was different each year using the two methods.d. Explain why absorption costing has potential for leading to undesirable incentives for managers. Please answer all parts i cant post…
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Jane Company produces clothes. One of the company's products is Diana Skirts which are sold for $90 each. The standard cost of producing 100 units of Diana skirt is shown below: Direct Jabour 500 Direct material 2,000 Variable production overhead 1,200 Fixed production overhead 1,800 ТОTAL 5,500 • Production and inventory data during the month of October 2021 is given below: Units Unit production Opening inventory Closing inventory 5000 10,000 8,000 The company's normal production is 120,000 units per annum. • Fixed production overhead cost spread evenly over the year. • The fixed selling and distribution cost per year is $78,000. Variable selling and distribution cost is $5.00 per unit. Required: Prepare Operating Income Statement for the month of October 2021 using Marginal Costing Approach.
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Use this information for Timmer Corporation to answer the question that follows. Timmer Corporation just started business in January. There were no beginning inventories. During the year, it manufactured 11,700 units of product and sold 8,000 units. The selling price of each unit was $25. Variable manufacturing costs were $3 per unit, and variable selling and administrative costs were $4 per unit. Fixed manufacturing costs were $23,400 and fixed selling and administrative costs were $7,900. What would Timmer's income from operations be for the year using absorption costing? O a. $120,100 b. $128,000 c. $96,080 Od. $144,000