The net profit of a company for a year on avariable costing basis is $92,000. On anabsorption costing basis, the net profit is$78,800. Fixed manufacturing overheadunit were the same in both the priorcosts perand current year (i.e. $1.10 per unit).What was the change in inventory over theyear?

Concept of Variable CostingVariable costing is an accounting method where only the variable…

Answered: The net profit of a company for a year…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $50 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
What are the total costs to account for if a companys beginning inventory had $23,432 in materials and $18,450 in conversion costs, and added direct material costs ($41,392), direct labor ($23,192), and manufacturing overhead ($62,500)?
Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
The net profit of a company for a year on a variable costing basis is $92,000. On an absorption costing basis, the net profit is $78,800. Fixed manufacturing overhead costs per unit were the same in both the prior and current year (i.e. $1.10 per unit). What was the change in inventory over the year? a) Decrease of 9,500 units b) Increase of 12,000 units c) Decrease of 12,000 units d) Increase of 9,500 units
The ending inventory for the year would be valued at.
What is the absorption costing net operating income for last year on these general accounting question?
The following data are obtained from Gianne Manufacturing Company: Cost of goods manufactured is P187,500 Inventory variations are as follows: raw materials ending inventory is one-third based on raw materials beginning; no initial inventory of work-in-process, but at end of period P12,500 was on hand; finished goods inventory was four times as large at end of period as at the start. Net income after taxes amounted to P26,000, income tax rate is 35%. Purchase of raw materials amounted to net income before taxes. Breakdown of costs incurred in manufacturing cost was as follows: Raw materials consumed 50% 30% 20% Direct labor Overhead Compute the amount raw materials beginning inventory: P38,571 P60,000 P90,000 P40,000

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