Reference no: EM13946298
Amcor, Inc., incurs the following costs to produce and sell a single product.
| Direct materials |
$10 |
| Direct labor |
$5 |
| Variable manufacturing overhead |
$2 |
| Variable selling and administrative expenses |
$4 |
| Fixed costs per year: |
|
| Fixed manufacturing overhead |
$90,000 |
| Fixed selling and administrative expenses |
$300,000 |
During the last year, 30,000 units were produced and 25,000 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $85,000 for the 5,000 unsold units.
Required:
1. Determine whether the company is using absorption costing or variable costing to cost units in the Finished Goods inventory account.
a. Calculate the ending balance in the Finished Goods inventory account under variable costing and absorption costing.
b. Which costing method is the company using to cost units in the Finished Goods inventory account?
Variable costing
Absorption costing
2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders.
a. Is the $85,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes?
Yes, because variable costing is generally accepted for external reporting.
No, because variable costing is not generally accepted for external reporting.
Yes, because absorption costing is generally accepted for external reporting.
No, because absorption costing is not generally accepted for external reporting.
b. At what dollar amount should the 5,000 units be carried in inventory for external reporting purposes?
Finished goods inventory balance for external reporting purposes__________
Michaels Company segments its income statement into its East and West Divisions. The company's overall sales, contribution margin ratio, and net operating income are $600,000, 50%, and $50,000, respectively. The West Division's contribution margin and contribution margin ratio are $150,000 and 75%, respectively. The East Division's segment margin is $70,000. The company has $60,000 of common fixed costs that cannot be traced to either division.
Required: Prepare an income statement for Michaels Company that uses the contribution format and is segmented by divisions. (Round your percentage answers to 1 decimal place.)
|
Select article from peer reviewed journal articles
: Write a 1-page summary (not including the title or reference pages) for article that includes the following components: - Describe how the article supports/refutes a key concept(s) one of the course textbook readings.
|
|
Convection heat transfer from the inner sphere
: What outer sphere diameter is required so that the convection heat transfer from the inner sphere is the same as if it were placed in a large, quiescent environ- ment with air at Too = 20°C?
|
|
Formally separate operations dbas from other dbas
: Create a formal service-level agreement (SLA) between IS and end users for each database application. Formally separate operations DBAs from other DBAs, giving them different titles and possibly different managers.
|
|
Explain rabin karp and boyer moore string matching algorithm
: Explain Rabin Karp and Boyer Moore string matching algorithm. or Implement the Rabin - Karp matcher and Boyer Moore string matching algorithm. Give analysis for pattern matching in firewall which algorithm is best?
|
|
Calculate the ending balance in the finished goods inventory
: Determine whether the company is using absorption costing or variable costing to cost units in the Finished Goods inventory account. Calculate the ending balance in the Finished Goods inventory account under variable costing and absorption costing
|
|
What is the hypothesis being tested here
: What is the name of the test you will run? Run the appropriate SPSS test and include the SPSS output here. What are the results of the test? What is the p-value? Compare the p value to alpha and note the result.
|
|
Annular region of outer radius
: At an instant in time during the discharge of a bat- tery, liquid paraffin occupies an annular region of outer radius ro = 19 mm around the battery, which is generating Eg = 1 W of thermal energy. Deter- mine the surface temperature of the battery.
|
|
Itemizes deductions for regular tax purposes
: Sylvester files as a single taxpayer during 2014 and claims one personal exemption. He itemizes deductions for regular tax purposes
|
|
Scenarios be designed to provide optimal education
: How can virtual reality, simulations, and real life scenarios be designed to provide optimal education for nursing students? How might they be integrated into the nursing school curriculum to increase patient, practitioner, and hospital safety?
|