Answer:
Yes
Explanation:
The analysis will need to compare all categories of cost.
It will calculate the difference in cost for each category and then add them for the total difference. That way, the company know which alternative is better.
AlternativeA Alernative B Diffence
Direc Materials 40 56 -16
Processing Cost 37 37 0
Equipment Rental 13 13 0
Occupancy Cost 15 22 -7
105 128 -23
Answer:
$140,000
Explanation:
The difference between operating incomes under absorption costing and variable costing based on fixed expenses is shown below:
Variable costing:
Fixed manufacturing overhead in production $750,000
Absorption costing:
The Fixed cost would be
= Beginning fixed manufacturing overhead in inventory + Fixed manufacturing overhead in production - Ending fixed manufacturing overhead in inventory
= $190,000 + $750,000 - $50,000
= $890,000
So, the difference would be
= $890,000 - $750,000
= $140,000
Answer:
C. 30,210
Explanation:
Cost of merchandise sold = cost of merchandise purchase - cost of merchandise left in inventory
= Purchases of $32,000 - Purchases discounts of $960 - Purchases returns and allowances of $1,200 + Freight In of $1,040
- ( Merchandise inventory at September 30 of $6,370 - Merchandise inventory September 1 of $5,700)
= 32,000- 960- 1,200+1,040 - 670 = 30,210
Answer:
Inventory= $5,040
Explanation:
Giving the following information:
March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200
Purchases:
Mar. 10 600 gals @ $ 7.25
Mar. 16 800 gals @ $ 7.30
Mar. 23 600 gals @ $ 7.35
Sales:
Mar. 5 400 gals
Mar. 14 700 gals
Mar. 20 500 gals
Mar. 26 700 gals
Total units= 3,000
Total sales= 2,300
Ending inventory= 700 units
LIFO (last-in, first-out)
Inventory= 700*7.20= $5,040
Answer:
Nashville's residual income = Net profit - Imputed cost of capital
= $3,600,000 - 12% x $9,500,000
= $3,600,000 - $1,140,000
= $2,460,000
Explanation:
Residual income is equal to net income minus imputed cost of capital. Imputed cost of capital is the product of interest rate and capital invested.
