**Farris Corporation's Financial Data Summary**Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:- **Selling price**: $128 per unit**Inventory Details:**- **Units in beginning inventory**: 0- **Units produced**: 9,150- **Units sold**: 8,750- **Units in ending inventory**: 400**Variable Costs per Unit:**- **Direct materials**: $22- **Direct labor**: $64- **Variable manufacturing overhead**: $10- **Variable selling and administrative expense**: $14**Fixed Costs:**- **Fixed manufacturing overhead**: $137,250- **Fixed selling and administrative expense**: $9,200**Question:**What is the net operating income for the month under absorption costing?---Note: Absorption costing includes both variable and fixed manufacturing costs in the cost of a product, unlike variable costing which includes only variable manufacturing costs.

Its a Traditional costing method ,where all costs associated with the production is captured to…

Answered: What is the net operating income for…

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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Windsor Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary From the information: (a) Manufacturing overhead $ LA $18,700 15,370 5,140 60,120 98,240 168,880 10,600 Office supplies used Determine the total amount of manufacturing overhead. Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising $84,680 56,020 3,050 1,670 2,440 18,300 3,160
prepare an income statement for last year using variable costing
How can we apply Annual-Worth Analysis for the calculation of Unit-Profit or Unit-Cost Calculation?
The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents: Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenue
P14
What is the difference between variable costing and absorption costing income statements? a. Provide a hypothetical income statement in both formats in which the number of units sold is different from the number of units manufactured. b. Explain the contrast between the two formats.
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year 60 24 24 $ 528,000 22 8 $4 $ 105,000 11 la. Assume the company uses absorption costing. Determine its product cost per unit. Absorption costing Per unit product cost using:
When preparing a forecasted contribution margin income statement and you are given the units produced, how do you compute dollars per unit?
Productivity is best described as a. The output produced by the average worker in an hour b. The number of hours the average worker spends at the job c. The percentage of the population that is working d. GDP per capita
How is operating income affected if the number of units sold exceeds the number of units produced? Select one: a. Operating income would be higher under a variable costing income statement. b. Operating income would be lower under a variable costing income statement. c. Operating income would be higher under an absorption costing income statement. d. Operating income would be the same under both a variable costing and absorption costing income PreviousSave AnswersNext
The number of production units that could have been completed within a given accounting period, given the resources consumed is called what? Group of answer choices equal units of production equivalent units of production partial units of production projected units of production

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