Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

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Answer 1

Question

Chapter 21, Problem 30AP

1.

To determine

Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

2.

To determine

Identify the statement that shows more operating income and provide explanation.

3.

To determine

State whether the company must go ahead with the promotion and provide reasons.

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Davenport Industries is working on its direct labor budget for the next two months. Each unit of output requires 0.48 direct labor hours. The direct labor rate is $9.20 per direct labor hour. The production budget calls for producing 7,200 units in July and 7,800 units in August. If the direct labor workforce is fully adjusted to the total direct labor hours needed each month, what would be the total combined direct labor cost for the two months?

What was the dollar amount of underallocated or overallocated manufacturing overhead?

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $520,000; Office salaries, $104,000; Federal income taxes withheld, $156,000; State income taxes withheld, $35,000; Social security taxes withheld, $38,688; Medicare taxes withheld, $9,048; Medical insurance premiums, $12,500; Life insurance premiums, $9,500; Union dues deducted, $6,500; and Salaries subject to unemployment taxes, $61,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. 1. & 2. Using the above information, complete the below table and prepare the journal entries to record accrued payroll, including employee deductions, and cash payment of the net payroll (salaries payable) for July. 3. Using the above information, complete the below table. 4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities…

Answer 2

Question

Chapter 21, Problem 30AP

1.

To determine

Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

2.

To determine

Identify the statement that shows more operating income and provide explanation.

3.

To determine

State whether the company must go ahead with the promotion and provide reasons.

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Answer 3

Question

Chapter 21, Problem 30AP

1.

To determine

Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

2.

To determine

Identify the statement that shows more operating income and provide explanation.

3.

To determine

State whether the company must go ahead with the promotion and provide reasons.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem 30AP

1.

To determine

Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

2.

To determine

Identify the statement that shows more operating income and provide explanation.

3.

To determine

State whether the company must go ahead with the promotion and provide reasons.

Expert Solution & Answer

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Answer 5

Chapter 21, Problem 30AP

1.

To determine

Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

2.

To determine

Identify the statement that shows more operating income and provide explanation.

3.

To determine

State whether the company must go ahead with the promotion and provide reasons.

Answer 6

Chapter 21, Problem 30AP

1.

To determine

Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

Answer 7

Chapter 21, Problem 30AP

1.

To determine

Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

Answer 8

2.

To determine

Identify the statement that shows more operating income and provide explanation.

Answer 9

2.

To determine

Identify the statement that shows more operating income and provide explanation.

Answer 10

3.

To determine

State whether the company must go ahead with the promotion and provide reasons.

Answer 11

3.

To determine

State whether the company must go ahead with the promotion and provide reasons.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

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Prepare income statement both under absorption costing and variable costing for the year ended December 31, 2018.

Identify the statement that shows more operating income and provide explanation.

State whether the company must go ahead with the promotion and provide reasons.

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Chapter 21 Solutions