Reference no: EM133068240
Question - Variable and Absorption Costing - Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows:
Sales (75,000 units) $4,500,000
Production costs (80,000 units)
Direct material 1,320,000
Direct labor 1,080,000
Manufacturing overhead:
Variable 816,000
Fixed 480,000
Operating expenses:
Variable 252,000
Fixed 360,000
Depreciation on equipment 90,000
Real estate taxes 27,000
Personal property taxes (inventory & equipment) 43,200
Personnel department expenses 45,000
Required -
a. Prepare an income statement based on full absorption costing.
b. Prepare an income statement based on variable costing.
c. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $45 per unit. Which income statement presents the most relevant data?
|
How did your stories affect the conversation
: How did your "stories" affect the conversation? describe the conversation and your initial understanding of how it went.
|
|
What is the company ROE
: Question - A company has a ROA of 9%. If their ROS is 12% and they have a financial leverage of 3, what is the company's ROE
|
|
Prevent future flash crashes
: Does the modern equity market structure really work well, or should changes be made?
|
|
Return on equity of jones inc
: Jones Inc. has sales of $1,000,000, total assets of $2,000,000, and a profit margin of 3 percent. The firm has a total debt ratio of 35 percent.
|
|
Prepare an income statement based on variable costing
: Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows: Prepare an income statement based on variable costing
|
|
Determining the bond price
: A bond with 14 years to maturity and a semiannual coupon rate of 7.44 percent has a current yield of 7.21 percent. The bond's par value is $2,000.
|
|
Calculate the payback period
: For the following stream of free cash flows, calculate the payback period and indicate whether you would invest in the project with a four year maximum allowabl
|
|
What are the earnings before taxes
: The addition to retained earnings is $418. The tax rate is 35 percent. Sales are $15,900 and depreciation is $680. What are the earnings before taxes
|
|
Explain knowledge conversion processes
: Explain the Knowledge conversion processes highlighted by Nonaka Takeuchi Model of Knowledge management.
|