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EraCruz company had the following operating data for its first two years of operation:Variable costs per unit:Direct materials $8Direct Labor 4Variable Overhead 1.5
Fixed Costs Per Year:Overhead 90,000Selling and admin 23,450
Veracruz produced 30,000 units in the first year and sold 25,000. INn the second year, it produced 25,000 units and sold 30,000 units. The selling price per unit each year was $21. Veracruz uses an actual costing system for product costing.
1.) Prepare income statement for both years using absorption costing. Has firm performance, as measured by income, improved or declined frm year 1 to year 2?2.) Prepare income statement for both years using variable costing. Has firm performance, as measured by income, improved or declined frm year 1 to year 2?3.) Which methid do you think most accurately measures firm performance? Why?
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The majority of ratios and other metrics are used by companies of all sizes. And you are correct, each user has their own method of evaluating performance and capability
Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column.
For purposes of determining current E&P, which of the following items cannot be deducted in the year incurred?
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