Solution-How much fixed manufacturing overhead cost was

How much fixed manufacturing overhead cost was deferred

Assignment Help Managerial Accounting

Reference no: EM132876832

Question - The following financial information has been provided by Snow Action Sports Inc., which manufactures downhill skis. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government.

	Year 1	Year 2	Year 3
Inventory (in units): Opening balance	225	240	225
Ending balance	240	225	300
Variable costing operating income	438,600	403,800	377,700

Fixed manufacturing overhead per unit was constant at $3,750 for all three years.

Required -

1. Determine each year's absorption costing operating income. Show all required calculations, neatly presented.

2. In year 4, the company's variable costing operating income was $360,300 and its absorption costing operating income was $307,800. How much fixed manufacturing overhead cost was deferred or released from inventory during year 4?

Reference no: EM132876832

Questions Cloud

Company license software use Capex funds : Does a company license software use Capex funds, or is it always Opex? Can you buy hardware with Opex or is it always Capex?

Why is a good succession management plan : Why is a good succession management plan important in today's workplace.

Operationalize cqi by asking two separate : In patient care settings, we operationalize CQI by asking two separate, but related, questions:

Should the united states create a separate cybersecurity : Should the United States create a separate cybersecurity strategy to be published alongside the National Security Strategy (NSS)

How much fixed manufacturing overhead cost was deferred : In year 4, the company's variable costing operating income was $360,300. How much fixed manufacturing overhead cost was deferred

Build effective workplace relationships with team members : Explain emotional intelligence and its importance in the workplace - build effective workplace relationships with team members

Demonstrate how to use pseudo code to help programming : Demonstrate how to use pseudo code to help programming. Use Scanner class to get user input from a keyboard (allow user interaction).

Research the variety of enumeration tools available : Research the variety of enumeration tools available. Select one tool and explain what it does, how it works and what type of information it extracts

How much should you deposit today in an investment fund : If you want to have $11,500.00 in 5 years and 9 months, how much should you deposit today in an investment fund

User Account

All Pages

How much fixed manufacturing overhead cost was deferred

Reference no: EM132876832

Reference no: EM132876832

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT