Solution-Prepare an income statement for each year based on

Prepare an income statement for each year based on full cost

Assignment Help Cost Accounting

Reference no: EM13875881

Profit Centers: Comparison of Variable and Full Costing Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in 2009. These data summarize the 2009 and 2010 operations:

	2009	2010
Sales	1,800 units	2,200 units
Production:	2,000 units	2,000 units
Production cost
Factory-variable (per unit)	$0.60	$0.60
-fixed	$1,000	$1,000
Marketing-variable	$.40	$.40
Administrative-fixed	$500	$500

Required: Prepare the following, using a spreadsheet.

1. An income statement for each year based on full costing.

2. An income statement for each year based on variable costing.

3. A reconciliation and explanation of the differences in the operating income resulting from using the full- costing method and variable-costing method.

Reference no: EM13875881

Questions Cloud

Currently operating at full capacity-current assets : Urban's which is currently operating at full capacity, has sales of $47,000, current assets of $5,100, current liabilities of $6,200, net fixed assets of $51,500, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acqu..

Firm have to wait before expanding its operations : Org X estimates its expansion cost at $18.63 million and wants to fully fund upfront. Management has decided to save $1.1 million a quarter for this purpose. The firm earns 6.25 percent, compounded quarterly, on its savings. How long does the firm ha..

Expected return on the risk free asset : What is the Beta for XYZ Company, given the following information: (a) Expected Return on Company XYZ’s Stock: 7.8%, (b) Expected Return on the Risk Free Asset: 1%, and (c) Expected Rate of Return on the Market: 8.9%.

Calculate gross profit percentage before shrinkage : Calculate (a) The cost of shrinkage,(b) An adjusted cost of goods sold (assuming shrinkage is charged to cost of goods sold),(c) Gross profit percentage before shrinkage, and(d) Gross profit percentage after shrinkage. Round gross profit percentages ..

Prepare an income statement for each year based on full cost : Prepare the following, using a spreadsheet. An income statement for each year based on full costing and An income statement for each year based on variable costing.

Discuss the merits and challenges of population : Select a specific population for whom access to services is a significant issue. This can be one of the groups mentioned above or some other group suffering from mental health disparities.

What is the role of the fcc in the telecommunications field? : What is the role of the FCC in the Telecommunications field?

What incentives are necessary to improve rate of compliance : Develop a brief explanation of the finding that many inspections were not in compliance with state standards. What incentives are necessary to improve the rate of compliance?

Corporations need a board of directors : 1.Why do corporations need a board of directors?

User Account

All Pages

Prepare an income statement for each year based on full cost

Reference no: EM13875881

Reference no: EM13875881

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT