Determine each year absorption costing net operating income

Assignment Help Accounting Basics
Reference no: EM131702080

Question - Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors and the government. The company has provided the following data:

 

Year 1

Year 2

Year 3

Inventories:

 

 

 

Beginning (units)

219

163

183

Ending (units)

163

183

228

Variable costing net operating income

$297,000

$276,900

$258,300

 The company's fixed manufacturing overhead per unit was content at $552 for all three years.

Required -

1. Determine each year's absorption costing net operating income.

2. In Year 4, the company's variable costing net operating income was $257,600 and its absorption costing net operating income was $275,200.

a. Did inventories increase or decrease during Year 4?

  • Increase
  • Decrease

b. How much fixed manufacturing overhead cost was deferred in or released from inventory during Year 4?

Reference no: EM131702080

Questions Cloud

Important to include in sustainability policy and planning : Explain why social indicators are important to include in Sustainability Policy and Planning.
Legal in the foreign country should us business : If it is legal in the foreign country should a US Business be allowed to hire workers in a foreign country that are under age 12.
Sheet metal rectangles of standard size : A metalworking shop needs to cut at least 37 large disks and 211 small ones from sheet metal rectangles of a standard size.
Impact of the ceo dismissal upon top management team : Does it appear that a succession plan was in place? Describe the impact of the CEO dismissal upon the top management team.
Determine each year absorption costing net operating income : The company's fixed manufacturing overhead per unit was content at $552 for all three years. Determine each year's absorption costing net operating income
Find the magnitude and direction of the resultant force : Find the magnitude and direction of the resultant force applied to the ground by the foot.
Discuss extravagance represented by the palace of versailles : Describe a painting by Rubens that you think shares the same sort of grandeur and extravagance represented by the Palace of Versailles
Evaluate the total cost of ownership of a few systems : You have been assigned to evaluate the total cost of ownership (TCO) of a few systems that are currently in use by Campus Travel employees.
Trouble maintaining a constant temperature : Rachel loves to bake cookies, but she has an old oven that has trouble maintaining a constant temperature. If the acceptable temperature range for making.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are pretax incomes

a. What are pretax incomes? b. Do you agree with Samuelson's argument that income inequality may be inevitable and desirable?

  For the activity level of 3000 units compute a the total

corio corporation reports that at an activity level of 2900 units its total variable cost is 139722 and its total fixed

  At what amount was cost of goods sold reported in the

ranns supply uses a perpetual inventory system. on january 1 its inventory account had a beginning balance of 6450000.

  A particular project requires an initial investment of

a particular project requires an initial investment of 10000 and is expected to generate future cash flows of 4000 for

  What is a solid state storage device

What is a solid state storage device?

  Harrington company is giving each of its employees

Harrington Company is giving each of its employees a holiday bonus of $250 on December 20 (a non pay day). The company wants each employee's check to be $250.

  The applicable tax rate is 40 there are no other temporary

the following information relates to interstate trucking for itsfirst year of operations data in millions

  Relationship between capacity utilization and quality

What is the relationship between capacity utilization and quality in a service operation

  Construction of new building

In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

  Suppose you want to estimate the proportion of cars that

suppose you want to estimate the proportion of cars that are sport utility vehicles suvs being driven in kansas city

  Carmack company has credit sales of 26 million for year

carmack company has credit sales of 2.6 million for year 2011. on december 31 2011 the companys allowance for doubtful

  Compute the contribution margin per unit of limited resource

Mars Company manufactures and sells three products. Compute the contribution margin per unit of limited resource (machine hours) for each product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd