Reference no: EM132967651
Question - In May?, Limonade produced 10,000 cases of powdered drink mix and sold 13,000 ?cases, of which 3,000 were produced in April. The total April production was 15,000. The sales price was $24?, variable costs were $7 per case ?($5 manufacturing and $2 selling and? administrative), and total fixed costs were $75,000 ?($60,000 manufacturing and $15,000 selling and? administrative). Limonade?'s May income statement using variable costing? follows:
Reference
Net Sales Revenue $312,000
Variable Costs:
Variable Manufacturing Overhead ($65000)
Variable Selling and Administrative Costs ($26000)
Contribution Margin 221,000
Fixed Costs:
Fixed Manufacturing Overhead (60,000)
Fixed Selling and Administrative Costs (15,000)
Operating Income 146,000
Requirements -
1. Prepare the May income statement using absorption costing.
2. Is operating income using absorption costing higher or lower than variable costing? income? Explain why.
3. Determine the balance in Finished Goods Inventory as of May 31.
|
Should Phone Corp buy the chargers from Charging Corp
: Should Phone Corp. buy the chargers from Charging Corp. or continue to make their own
|
|
Discuss the accounting treatment
: At the end of the five-year period, the agreement can be renewed at a minimal charge. Discuss the accounting treatment of the $10 million spent by Falcon
|
|
Find the population at the end of ten years
: Question - A town with a population of 5,000 grows 3% per year. Find the population at the end of 10 years
|
|
What is the average real return for international stocks
: Inflation has averaged 2.8% over the past 4 years. What is the average real return for international stocks and US corporate bonds
|
|
Determine the balance in Finished Goods Inventory as of May
: In May?, Limonade produced 10,000 cases of powdered drink mix and sold 13,000 ?cases, Determine the balance in Finished Goods Inventory as of May 31
|
|
Calculate the unit product cost
: Variable manufacturing overhead 20 per unit and Fixed manufacturing overhead 5,775 per month. Using variable costing, calculate the unit product cost
|
|
Prepare an income statement for the subsidiary in pounds
: Prepare an income statement, statement of retained earnings, and balance sheet for this subsidiary in pounds and then translate these amounts to USD
|
|
Determine the remeasurement gain or loss to be reported
: Determine the remeasurement gain or loss to be reported in Stephanie's 2020 consolidated net income, assuming that the U.S dollar is the functional currency.
|
|
Prepare condensed income statements for the past year
: Prepare condensed income statements for the past year for each division. Invested assets and condensed income statement data
|