What is the income under absorption costing

Assignment Help Accounting Basics
Reference no: EM133182534

Questions -

Q1. Net income under variable costing is P 30,000. Data shows: the total manufacturing cost per unit is P 20; total variable cost per unit is P 15 per unit and variable period cost is P 3 per unit. Beginning and ending inventories are 1,000 units and 1,500 units, respectively. What is the income under absorption costing?

a. 34,000

b. 32,500

c. 27,500

d. 28,000

e. None of the above

Q2. Sales increased from Year 1 (with sales of 800,000) to Year 2 (with sales of 900,000); The DOL (Degree of Operating Leverage) in Year 1 is 5.0 and EBIT in Year 2 is 81,250. What is the fixed cost?

a. 100,000

b. 200,000

c. 325,000

d. Cannot be determined

Reference no: EM133182534

Questions Cloud

What is the fixed cost : he DOL (Degree of Operating Leverage) in Year 1 is 5.0 and EBIT in Year 2 is 81,250. What is the fixed cost
Six-step decision-making process : You are the director of pharmacy services for an academic medical center that has four pharmacies, including three that provide 24-hour service.
Prepare nashs december journal entries : Prepare Nashs' December 31, 2019, journal entries assuming the implicit rate of the lease is 10% and this is known to Nash
Distinguish between group and team : Distinguish between a group and a team. Discuss ethical decision-making in team leadership that promotes social responsibility.
What is the income under absorption costing : Net income under variable costing is P 30,000. Data shows: the total manufacturing cost per unit is P 20; What is the income under absorption costing
Collective agreement between a hospital and the union : A collective agreement between a hospital and the union contained the following
Find imposed residency requirements : Various local governments have imposed residency requirements for some or all categories of their government employees. These requirements often generate contro
What is the expected monetary value for shifter : The company will charge $27/month per account for subscription to MAVIO. What is the expected monetary value for SHIFTER
Harvard case study-recruiting a star : 1. What are the problems/issues faced by Stephen Connor? List and fully explain them all.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Construc the journal entries to record issue of debentures

Great Sand Ltd's financial year-end. Prepare the journal entries to record the issue of the debentures and the annual interest payments on 30th June 2019

  How much of the social security is subject to tax

They received $23,000 of social security benefits during the year. How much of the social security is subject to tax

  Prepare an amortization table for this installment note

Prepare an amortization table for this installment note, similar to the one presented in Exhibit 3. Journalize the entries for the issuance of the note

  How much should be final cash settlement to mark and johnny

The liquidation expenses were $5,000. Assuming Lucas is insolvent. How much should be the final cash settlement to Mark and Johnny?

  What documents might need to make accurate recording

What documents might you need to help you make accurate recording and storing financial data ate records? List and describe three source documents.

  What are the two objectives of accounting

What are the two objectives of accounting for income taxes identified in FASB Statement No. 109?

  What does the market believe the stock price

The stock currently sells for P40 a share. Assuming the market is in equilibrium, what does the market believe the stock price will be

  Which management disclosures in the financial statements

Which Management's disclosures in the financial statements with regard to a going concern uncertainty include? the principal conditions or events that raised

  Determining optimal price and output

Suppose the two firms act as perfect competitors and try to out compete each other and do not collude, what would be the optimal industry price and output?

  What is trevors net pay

What is Trevor's net pay? (Assume an OASDI rate of 6.2%, applicable on the first $118,500 earnings, and a Medicare rate of 1.45%, applicable on all earnings.)

  Income statement for september

Prepare an income statement for September, a retained earnings statement for September, and a statement of financial position at September 30.

  What is management control cost

What is management control cost? What negative effects can the costs have on the company's objectives

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