a. Explain what you understand by the terms 'Absorption (Full) costing' and *Marginal (Variable) costing'. b....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a. Explain what you understand by the terms 'Absorption (Full) costing' and *Marginal (Variable) costing'. b. Cheriton Company makes and sells plastic chairs. The company prepares variable costing income statements for management and absorption costing income statements for external use. In May 2019, it produced 22000 units and sold 20000 units. Beginning inventory was 2000 units. The records show the following details for May 2019. Selling price $100 Direct materials cost 12 Direct labour cost per hour 18 4 Variable manufacturing overhead cost Variable selling expense 8 $220000 Fixed manufacturing overhead cost Fixed admin. and distribution cost $100000 Required: a. Prepare a profit and loss account using Variable costing b. Prepare a profit and loss account using Absorption costing a. Explain what you understand by the terms 'Absorption (Full) costing' and *Marginal (Variable) costing'. b. Cheriton Company makes and sells plastic chairs. The company prepares variable costing income statements for management and absorption costing income statements for external use. In May 2019, it produced 22000 units and sold 20000 units. Beginning inventory was 2000 units. The records show the following details for May 2019. Selling price $100 Direct materials cost 12 Direct labour cost per hour 18 4 Variable manufacturing overhead cost Variable selling expense 8 $220000 Fixed manufacturing overhead cost Fixed admin. and distribution cost $100000 Required: a. Prepare a profit and loss account using Variable costing b. Prepare a profit and loss account using Absorption costing
Expert Answer:
Answer rating: 100% (QA)
Answer Explanation Absoatetion Costing It is a GAPP Nethod and is used by IRS fo... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
What do you understand by the term cardinality?
-
What do you understand by the term first normal form?
-
What do you understand by the term hyper-competition? What, according to hyper-competition, are the various arenas of competition?
-
Sulfur trioxide reacts with water to form sulfuric acid, a major contributor to acid rain. One origin of SO 3 is the combustion of sulfur, which is present in small quantities in coal, according to...
-
The accounting records of Fuzzy Dice Auto Parts reveal the following: Compute cash flows from operating activities using the direct method for the year ended December 31, 2014. Payment of salaries...
-
Car A costs $10.37 per 100 miles to drive, while car B costs $6.66 per 100 miles to drive. How much more would car A cost to drive 550 miles? Car A costs $ more to drive 550 miles. (Type an integer...
-
Explain the importance of a written contract.
-
You are considering two independent projects, Project A and Project B. The initial cash outlay associated with Project A is $50,000 and the initial cash outlay associated with Project B is $70,000....
-
Unemployment Image transcription text Discussion Topic The three elements of culture that your textbook details are language, norms, and values. These are avenues through which we are all socialized....
-
Ashley runs a small business in Boulder, Colorado, that makes snow skis. She expects the business to grow substantially over the next three years. Because she is concerned about product liability and...
-
a) Complete Marked out of 400 in one year's time JB LoFi is expected to have earnings of $87.1 million. The firm is expected to pay dividends of $35.5 million and spend $11.6 million on share...
-
Nonprofit organizations frequently seek grant writers, and you would like to gain experience in this area. Youve heard that they pull down good salaries, and one day you might even decide to become a...
-
How can market segmentation influence decisions about the marketing mix?
-
Identify the best graphics forms to illustrate the following data. a. Potential new residential development project b. Annual restaurant industry sales figures c. Government unemployment data by...
-
What sources of published demographic data are available via your own university or college library?
-
As president of Unicorn Travel, you brought a very complex print job to the Primera Printers in Rochester, New York. It took almost 15 minutes to explain the particulars of this job to the printer....
-
Prepare journal entries, General ledger, Balance sheet and Income statement a. deposited 150,000 cash in the business bank account b. transferred to the business law books valued at 50,000 c. paid...
-
A bubble-point liquid feed is to be distilled as shown in Figure. Use the Edmister group method to estimate the mole-fraction compositions of the distillate and bottoms. Assume initial overhead and...
-
a. A sound wave travelling through air can be represented as shown in the diagram. Which distance, A, B, C, or D, represents: i. one wavelength? ii. The amplitude of the wave? b. The cone of a...
-
a. The diagram below shows a circuit containing a lamp and a variable resistor. The circuit does not work. The lamp does not light and altering the setting on the variable resistor makes no...
-
a. The table gives the melting and boiling points for lead and oxygen. i. At 450 C will the lead be a solid, a liquid or a gas? ii. At -200 C will the oxygen be a solid, liquid or a gas? b. The graph...
-
A political pollster approaches people on the street and asks them to describe their political affiliation. Twenty-eight people describe themselves as Democrats, 25 as Republicans, 8 people provide a...
-
Listed below are a number of hypothetical research hypotheses. For each hypothesis, identify the independent and dependent variable. a. Male drivers are more likely to exhibit road rage behaviors...
-
Listed below are a number of research questions and hypotheses from actual published articles. For each hypothesis, identify the independent and dependent variable. a. The use of color in a Yellow...
Study smarter with the SolutionInn App