
Ethics in Accounting: A Decision-Making Approach
1st Edition
ISBN: 9781118928332
Author: Gordon Klein
Publisher: WILEY
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Chapter 6, Problem 13E
To determine
Provide information whether the arrangement between the young CPA and the retiring CPA is ethical.
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I need assistance with this general accounting question using appropriate principles.
The Equipment Maintenance Department of Kason Inc. has incurred the
following costs during the past five months:
Month
Production Total cost
July
1,000 units $45,550
August
1,500 units $52,000
September 2,100 units $61,500
October
1,800 units $57,500
November 750 units
$41,250
Using the High-Low method, determine the variable cost per unit, and the
fixed cost per month.
A company had an income of $60,000 using absorption
costing for a given period. Beginning and ending inventories
for that period were 13,000 units and 18,000 units,
respectively. Ignoring income taxes, if the fixed overhead
application rate was $3.00 per unit, what was the income
using variable costing?
A. $75,000.
B. $60,000.
C. $45,000.
D. Not sufficient information to determine.
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Ethics in Accounting: A Decision-Making Approach
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