Determine operating income

Assignment Help Accounting Basics
Reference no: EM133070784

Question - Kwan Manufacturing Company data for 20X0 follow:

Sales: 11,000 units at $19 each

Actual production 15,500 units

Expected volume of production 15,000 units

Manufacturing costs incurred Variable $124,000

Fixed 54,000

Nonmanufacturing costs incurred Variable $ 11,000

Fixed 17,800

Variable overhead ¥14,400,000

Fixed overhead 27,250,000

Total overhead ¥41,650,000

Required -

1. Determine operating income for 20X0, assuming the firm uses the variable-costing approach to product costing.

2. Assume that there is no January 1, 20X0, inventory; no variances are allocated to inventory; and the firm uses a "full absorption" approach to product costing. Compute (a) the cost assigned to December 31, 20X0, inventory, and (b) operating income for the year ended December 31, 20X0.

Reference no: EM133070784

Questions Cloud

Find principal of the loan : You borrow $350,000 at 8% interest. You will repay the loan with equal monthly payments over 27 years. How much is each monthly payment?
Distribute principal to both beneficiaries and charities : Your client, Grace and Juan Rodriguez, have three small children, and own a small home in Phoenix, Arizona. You are a CFP professional and helped guide them thr
Determine the company budgeted gross profit : A Company is preparing a profit budget and has projected that net sales will equal $600,000 for the period. Determine the Company budgeted gross profit
What is the budgeted product cost for a planned volume : The following budgeted per unit cost for Ant Retreats' ant farms is based on an expected volume of 3,000 units. What is the budgeted product cost
Determine operating income : Determine operating income for 20X0, assuming the firm uses the variable-costing approach to product costing
What is the current stock price for culver : What is the current stock price for Culver? (Round intermediate calculations to 4 decimal places, e.g. 45.1771 and final answer to 2 decimal places, e.g. 45.17.
Calculate the monthly payment and the annual rate : The loan will be amortized over 5 years and the nominal interest rate will be 8% payable monthly. Calculate the monthly payment
How could tci use options to hedge risk : In February, Tech Components, Inc. (TCI), a manufacturer of specialized electronic components, was negotiating a supply agreement with a major auto manufacturer
Explain the concept of time value of money : Explain the concept of time value of money. How would you use this in personal financial planning such as borrowing or saving for the future?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the appropriate journal entries

By the company's year-end, December 31, 2021, $8,645 of warranty costs were incurred and paid in cash. Prepare the appropriate journal entries for 2020 and 2021

  Discuss what would you do as a controller in this situation

What would you do as a controller in this situation, Who are the stakeholders in this situation

  Would you consider investing in sams sandwich delivery

Perform a vertical analysis of the income statement. Based on your analysis, would you consider investing in Sam's Sandwich Delivery?

  Preparea bond premium amortization schedule for the bond

The bond pays a 10% coupon and it yields 8% compounded semianually. Preparea bond premium amortization schedule for the bond

  Calculate the new profit or loss if changes are implement

Calculate the variable expense ratio, Calculate break even sales in units

  Journalize the entries on sparta company

Journalize the entries on both companies' books assuming that the exchange lacked Commercial substance.Journalize the entries on Sparta Company

  If a projects expected return is 15 which represents a 35

if a projects expected return is 15 which represents a 35 return in a booming economy and a 5 return in a stagnant

  What is the amount of depletion that should be recorded

In 2018, Frederick extracted and sold 145,000 tons of ore. What is the amount of depletion that should be recorded

  Determine the carrying value of inventory at december

Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products

  Calculate the amount of sale revenue recorded by abc company

Calculate the amount of sales revenue recorded by ABC Company in year 2. Selected information for ABC Company for the past two years

  Cretae not-for-profit organization in an area of interest

Cretae not-for-profit organization in an area of interest to your team and review the financial statements and audit report for the organization.

  Calculating the degree of operating leverage

Calculating the degree of operating leverage, degree of financial leverage and the degree of total leverage for Carson

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd