ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266380570
Author: Christensen
Publisher: MCG
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Chapter 13, Problem 13.6Q
To determine

Introduction: The reportable segment is the course of action used to decide which of the operating segments are separately reportable. A separately reportable segment requires separate supplemental disclosures, based on management’s arrangement of these operating segments for the purpose of internal evaluation of the entity’s financial position and operating performance.

The two materiality tests used to determine separately reportable foreign operations.

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Garrison Polymers produces synthetic materials used in the manufacturing of electronic components. In 2015, its first year of operations, Garrison produced 5,000 tons of synthetic material and sold 3,200 tons. In 2016, the company produced the same amount and sales were 6,000 tons (i.e., the company sold all of its inventory). In each year, the selling price per ton was $2,500, variable manufacturing costs per ton were $500, and variable selling expenses were $700 per ton. Fixed manufacturing costs were $5,000,000, and fixed administrative expenses were $600,000. What is the net income under variable costing in year 2015? Help
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Chapter 13 Solutions

ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS

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