The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed manufacturing costs were $72,000 for each of the last five years. The units in Year 1 beginning inventory were based on production of 800 units. Year 1 2 Beginning inventory 120 400 Production 800 920 920 Sales (920) (520) (920) Ending inventory 400 400 For each year, calculate the difference between absorption costing and variable costing operating income. Indicate which costing system has the higher net income. Year 1 2 3 Difference in $ 10800 i 36000 operating income Costing system that has Variable Costing Absorption Costing Neither higher net income %24 %24

The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed manufacturing costs were $72,000 for each of the last five years. The units in Year 1 beginning inventory were based on production of 800 units. Year 1 2 Beginning inventory 120 400 Production 800 920 920 Sales (920) (520) (920) Ending inventory 400 400 For each year, calculate the difference between absorption costing and variable costing operating income. Indicate which costing system has the higher net income. Year 1 2 3 Difference in $ 10800 i 36000 operating income Costing system that has Variable Costing Absorption Costing Neither higher net income %24 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give solution in image format ?. And explain proper steps by Step.
A community public works project will cost $92,000 and will benefit five different individuals. Individual Individual Benefit ($) Individual Cost ($) 1 4,500 6,000 2 18,500 15,000 3 19,000 17,000 4 30,000 24,000 5 29,000 30,000 Is this project economically feasible? Please show work in an Excel spreadsheet that lists the benefit for each individual. Would this project be approved by a majority at a community referendum?
I keep getting .605932 when I do it on the calculator. I also don't understand why using FV....I'm receiving 2,360,000 so that should = PV
Please complete this practice problem by using the 2 images below. Please write cleary and everything in order. Thank you
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
[The following information applies to the questions displayed below.] Washington County's Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below. Cost of acquiring additional land for runway Cost of runway construction Cost of extending perimeter fence Cost of runway lights Annual cost of maintaining new runway Annual incremental revenue from landing fees In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $105,000. The old snowplow could be sold now for $10,500. The new, larger plow will cost $6,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway,…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.