The duller Edge Inc. assembles and sells MP3 players. The company began operations on May 1, 2012,
Question:
The duller Edge Inc. assembles and sells MP3 players. The company began operations on May 1, 2012, and operated at 100 % of capacity during the first month. The following data summarize the results for May:
a. Prepare an income statement according to the absorption costing conceptb. 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:
Sales (20,000 units).. Production costs (27,000 units): Direct materials. Direct labor.... Variable factory overhead. Fixed factory overhead... Selling and administrative expenses: Variable selling and administrative expenses.. Fixed selling and administrative expenses..... $4,000,000 $1,998,000 972,000 486,000 ... 3,780,000 324,000 $ 560,000 ....... .... ....... ...... 150,000 710,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (4 reviews)
a THE DULLER EDGE INC Absorption Costing Income Statement For the Month Ended May 31 2012 Sales 4000...View the full answer
Answered By
Arshad Ahmad
Well, I am really new to tutoring but I truly believe a good student can be a better teacher. I have always been a topper at school. I passed my Chartered Accountancy at a very young age of 23, a rare feat for most of the students. I am really dedicated to whatever work I do and I am very strict regarding deadlines. i am always committed and dedicated to whatever work allotted to me and I make sure it is completed well within deadline and also I try to give my best in whatever I do. Hope we will have a good time studying together.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Managerial Accounting questions
-
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....
-
From the following information, prepare an income statement for Understory, Inc., for the year ended December 31,2012. Gross Sales Revenue. Income Taxes Cost of Goods Sold Sales Salaries Expense Rent...
-
At 100C, what is the maximum solubility of the following: (a) Pb in Sn (b) Sn in Pb
-
Flin Flon Company enters into a contract on April 3, 2017, with Thompson Industries to supply 5,000 microprocessors at a price of $7 each. The microprocessors cost Flin Flon $3 each. The...
-
On August 1, 2022, Bruce opened a framing and art supply store. Prior to opening the business, he incurred the following costs: Legal fees related to setup $25,000 Office equipment 15,000 Interest...
-
In interface design, what role do patterns play (or what role should they play)? Provide an example for patterns when you use an ATM to withdraw cash.
-
Eminence Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the...
-
At the end of May, the sales journal of Mountain View appears as follows. Assume beginning inventory balance for May to be $8,572. Sales Journal Accounts Receivable Debit Invoice Date May 6 Account...
-
Use the data in BWGHT.RAW to answer this question. (i) How many women are in the sample, and how many report smoking during pregnancy? (ii) What is the average number of cigarettes smoked per day? Is...
-
At the end of the first year of operations, 7,500 units remained in the finished goods inventory. The unit manufacturing cost during the year were as follows: Direct material .......... $ 52.00...
-
Patagucci Inc. manufactures and sells athletic equipment. The company began operations on August 1, 2012, and operated at 100% of capacity (66,000 units) during the first month, creating an ending...
-
1. Do you think Holly could be guilty of negligent hiring? 2. Do you think a jury of average citizens would find Holly and/or her club guilty of negligent hiring? 3. As an HR specialist, how would...
-
You are collecting water from a well by lowering a bucket on a rope. The inertia of the empty bucket is \(0.72 \mathrm{~kg}\), and the inertia of the rope is negligible. (a) If you lower the empty...
-
Two protons are fired toward each other on closely spaced paths, one moving in the \(+z\) direction and one in the \(-z\) direction. As they pass close to each other, is the magnetic force between...
-
Suppose two electrons move on parallel, closely spaced paths in the \(+z\) direction, each with velocity \(\vec{v}\) in the Earth reference frame. Discuss all forces exerted on the electrons.
-
A negatively charged particle is at rest in a region where a uniform magnetic field points in the positive \(x\) direction and a uniform electric field points in the positive \(y\) direction. What is...
-
Where do you expect the magnitude of the magnetic field due to a circular current loop to be greatest?
-
The Chief Financial Officer of the corporation you work for recently told you that he had a strong preference to use forward contracts rather than futures contracts to hedge: "You can get contracts...
-
CRUZ, INC. Comparative Balance Sheets December 31, 2015 CRUZ, INC. Income Statement For Year Ended December 31, 2015 Required Use the indirect method to prepare the cash provided or used from...
-
Consider a four- year bond with a coupon rate of 7 percent and face value of $1,000. Further assume the yield curve is flat, with a 9 percent yield to maturity. Assuming the yield curve remains flat,...
-
An employee of JHT Holdings, Inc., a trucking company, was responsible for resolving roadway accident claims under $25,000. The employee created fake accident claims and wrote settlement checks of...
-
Bizarro Sound Co. discovered a fraud whereby one of its front office administrative employees used company funds to purchase goods, such as computers, digital cameras, compact disk players, and other...
-
A former chairman, CFO, and controller of Donnkenny, Inc., an apparel company that makes sportswear for Pierre Cardin and Victoria Jones, pleaded guilty to financial statement fraud. These managers...
-
As of June 30, Year 1, the bank statement showed an ending balance of $16,878. The unadjusted Cash account balance was $15,239. The following information is available: 1. Deposit in transit, $2,190....
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
-
Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small...
Study smarter with the SolutionInn App