Evaluate operating income for 2017

Assignment Help Financial Accounting

Reference no: EM1314467

Comparison of Variable and Absorption Costing.

Variable and Absorption Costing

Chan Manufacturing Company data for 20X7 follow:

Sales: 12,000 units at $17 each

Actual production 15,000 units

Expected volume of production 18,000 units

Manufacturing costs incurred

Variable $120,000

Fixed 63,000

Nonmanufacturing costs incurred

Variable $ 24,000

Fixed 18,000

1. Determine operating income for 20X7, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)

2. Assume that there is no January 1, 20X7, 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, 20X7, inventory; and (b) operating income for the year ended December 31, 20X7.

Reference no: EM1314467

Questions Cloud

Statements of expansionary fiscal and monetary policies : Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.

Difference in the ending inventory balances : Describe the reason for any difference in the ending inventory balances under the two costing methods and the impact of this difference on reported net operating income.

Calculation of yield to maturity on bond with given data : Calculation of yield to maturity on bond with given data and The bonds had a coupon rate of 4.5%

Relationship between real gdp and potential gdp : Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:

Evaluate operating income for 2017 : Evaluate operating income for 2017, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)

Calculation of intrinsic value of bond with given data : Calculation of intrinsic value of bond with given data and what is the intrinsic value (to the nearest dollar) of an SWH Corporation bond

Expansionary monetary policy-ad and as model : Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.

Elementary row operations : Elementary row operations.

Estimating probability values using bayes theorem : If a complete failure occurs, calculate the probability that the fault occurred in:

User Account

All Pages