Beach Motors Inc. assembles and sells Dune Buggy engines. The company began operations on July 1, 2014,
Question:
Beach Motors Inc. assembles and sells Dune Buggy engines. The company began operations on July 1, 2014, and operated at 100% of capacity during the first month. The following data summarize the results for July:
a. Prepare an income statement according to the absorption costing concept.
b. Prepare an income statement according to the variable costing concept.
c. What is the reason for the difference in the amount of income from operations reported in (a) and(b)?
Transcribed Image Text:
9,00000 Production costs (40500 units): $4,495,500 729,000 8,505,000 Selling and administrative expenses: Variable selling and administrative expenses...........................$1,260,000 225,000 Fixed selling and administrative expenses.... 1,435,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
a BEACH MOTORS INC Absorption Costing Income Statement For the Month Ended July 31 2014 Sales 900000...View the full answer
Answered By
Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Question Posted:
Students also viewed these Managerial Accounting questions
-
Exercise 7-18 On July 1, 2014, Agincourt Inc. made two sales. 1. It sold land having a fair value of $901,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of...
-
A business operated at 100% of capacity during its first month and incurred the following costs: If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month. What is...
-
A subsidiary of a U.S. company began operations on January I, 2014, in a country whose currency is identified as hyperinflationary. The subsidiary's local currency (LC) is its functional currency....
-
In Exercises 8594, find all values of x satisfying the given conditions. y = 2x + x 8x + 2 and y = 6.
-
Consider a steam power plant operating on a reheat Rankine cycle. Steam enters the high pressure turbine at 16 MPa, 550oC and is condensed in the condenser at 10 kPa. If the moisture content of the...
-
Repeat Problem 8.3 considering G(s) = (s + 2)2. Data From Problem 8.3 Consider an open loop system having a transfer function \(G(s)=\) \((s+4)^{-1}\) and a sampler placed before \(G(s)\). Find its...
-
Rossman [1994] presents an interesting study of average life expectancy of 40 countries. Table B. 16 gives the data. The study has three responses: LifeExp is the overall average life expectancy....
-
Sarah Edwards, division manager for Pillows Plus, is speaking to the controller, Diana Rothman, about the budgeting process. Sarah states, Im not an accountant, so can you explain the three main...
-
A company applies overhead at a rate of 1 5 5 % of direct labor cost. Actual overhead cost for the current period is $ 8 2 5 , 0 0 0 , and direct labor cost is $ 5 0 0 , 0 0 0 . Determine whether...
-
Following are the income statement and balance sheet for Medtronic PLC. Consolidated Statement of Income, 12 Months Ended ($ millions) April 26, 2019 Net Sales $30,557 Costs and expenses Cost of...
-
At the end of the first year of operations, 11,250 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials ................ $ 78...
-
Ekin Inc. manufactures and sells high- quality sporting goods equipment under its highly recognizable inverse swoosh logo. The company began operations on January 1, 2014, and operated at 100% of...
-
Suppose that the LIBOR yield curve is flat at 8% with annual compounding. A swaption gives the holder the right to receive 7.6% in a five-year swap starting in four years. Payments are made annually....
-
131. Compute the direct materials price and quantity variances for Taylor Company. 132. Compute the direct labor rate and time variances for Taylor Company. 133. Standard and actual costs for direct...
-
The coordinates of the points below represent the vertices of a rectangle. P: (2, 2); Q: (7,2); R: (7, 5); S: (2,5) What is the perimeter, in units, of rectangle PQRS?
-
The foreman of a bottling plant has observed that the amount of soda in each 32-ounce bottle is actually a normally distributed random variable, with a mean of 32.2 ounces and a standard deviation of...
-
Discuss the essence of credit in banking business.
-
1. Currently, Jim Morris makes $100,000. Next year his income will be $120,000. Jim is a big spender and he wants to consume $150,000 this year. The equilibrium interest rate is 10 percent. What will...
-
There are two compounds with the formula C 3 H 6 , one of which does not have a multiple bond. Draw its structure and explain why it is much less stable than the isomer with the double bond.
-
The ultimate goal of Google, Bing, and other consumer search engines is to provide users with search listings that contain useful information on the topic of their search. What recommendations would...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. In order for an offer to be valid, it must be defi nite and certain.
-
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $298,150 and Allowance for Doubtful Accounts has a balance of $31,200. Describe how the...
-
Which of the two methods of estimating uncollectibles provides for the most accurate estimate of the current net realizable value of the receivables?
-
Which of the two methods of estimating uncollectibles provides for the most accurate estimate of the current net realizable value of the receivables?
-
Milligan's Backyard Storage Kits, a mail order company, sells a variety of backyard storage unit kits and landscaping decorations to its customers. Although the company makes a profit, David...
-
1. If you think about then Guest Services Essentials class, what do you believe to be the biggest change in your customer service practice? 2. Name and describe two customer service techniques to...
-
Packaging Waste & Recycling UK, 2013('000 tonnes) 2,260 Total Packaging Waste Total Recycled 4,000 3,868 3,459 3,000 2,339 2,000 1,639 1,029 1,000 806 714 462 436 23 0 0 Metal Glass Wood Paper...
Study smarter with the SolutionInn App