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2 years ago

The COGS reflected on the income statement is the same COGS we use in the development of a MCS. True False

Business

1 answer:

liraira [26]2 years ago

3 0

Answer:

False

Explanation:

In marginal costing systems (MCS), the cost of goods sold (COGS) is made up of only variable costs. This helps in determining the contribution margin, which is the difference between sales revenue and variable costs of production.

However, the cost of goods sold reflected on the income statement is not only the variable costs. They include all the products' costs based on absorption costing, which is used in income statement preparation under the financial accounting system. Marginal costing system is simply a cost accounting technique for internal or managerial usage.

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Thrifty Co. reported net income of $573,650 for its fiscal year ended January 31, 2020. At the beginning of that fiscal year, 10

Xelga [282]

Answer:

a. The basic earnings per share of common stock for year ended January 31, 2020 is $3.56 per share

b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS.

Explanation:

a. In order to calculate the BEPS we would have to use the following formula:

BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock

Net income available to common stockholders=$573,650

Weighted Avg. no. of common stock = 100,000 + (30,000 x 3/12)

Weighted Avg. no. of common stock = 107,500

BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock

BEPS = $573,650 / 107,500

BEPS= $3.56 per share

b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS.

5 0

2 years ago

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill

mars1129 [50]

The answers are below

6 0

2 years ago

Read 2 more answers

Atlas Company plans to sell 145,000 units in November and 190,000 units in December. Atlas's policy is that 15% of the following

r-ruslan [8.4K]

Answer:

Option (b) is correct.

Explanation:

Given that,

Sales = 145,000 units

Desired ending inventory = 28,500 units

Beginning inventory = 21,750

Budgeted production in units for November:

= Sales + desired ending inventory - Beginning inventory

= 145,000 units + (190,000 × 15%) - 21,750

= 145,000 units + 28,500 - 21,750

= 151,750 units

8 0

2 years ago

Python Company sells merchandise on account for $5000 to Monte Company with credit terms of 2/10, n/30. Monte Company returns $1

Lisa [10]

Answer:

amount of the check = $3430

Explanation:

given data

sells merchandise account = $5000

credit terms of 2/10, n/30

Company returns = $1500

to find out

amount of the check

solution

we will find here amount of the check that is express here as

amount of the check = (sells merchandise account - Company returns) × (100 - n ) .......................1

put here value in equation 1 we get

amount of the check = (5000 - 1500 ) × (100% - 2%)

amount of the check = (3500 ) × (98%)

amount of the check = $3430

7 0

2 years ago

Pastel Company operates in the following lines of business which management believes have distinguishable return and risk charac

SSSSS [86.1K]

Answer:

A) Entertainment, Lodging, and Services

Explanation:

Under Generally Accepted Accounting Principles (GAAP), you need to follow these rules to report segment data:

If at least 10% of revenues, profit or combined assets are under one segment.
And together with the above the total revenue must overcome the 75% of the entity.

Revenues Assets Rev/Assets

Food 500 2.000 3%

Beverages 1.300 6.000 9%

Entertainment 2.500 10.000 14%

Lodging 5.000 20.000 29%

Services 22.000 28.000 41%

International 700 3.000 4%

32.000 69.000 100%

A) Entertainment, Lodging, and Services

Revenues 92% of total entity.
Assets 84% of total entity.

8 0

2 years ago