Reference no: EM131294926
During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $25 per unit)................................... $1,000,000 $1,250,000 Cost of goods sold (@ $18 per unit)................... 720,000 900,000 Gross Margin.............................................. 280,000 350,000 Selling and administrative expenses.................. 210,000 230,000 Net operating income.................................. 70,000 120,000 $2.00 per unit variable: $130,000 fixed each year The company's $18 unit product cost is computed as follows: Direct Materials...............................................................$4 Direct Labor...................................................................$7 Variable Manufacturing Overhead..........................................$1 Fixed Manufacturing Overhead.............................................$6 Absorption costing unit product cost......................................$18 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the two years are: Year 1 Year 2 Units produced................................................. 45,000 45,000 Units Sold....................................................... 40,000 50,000
1. Prepare a variable costing contribution format income statement for each year.
2. Reconcile the absorption costing and the variable costing net operating income figures for each year.
|
Write a journal entry
: You purchased a new car that costs 10,000. You signed a six month 20% installment note payable for the cost of the car. The car has an estimated useful life of 3 years the residual salvage value is 200. Write a journal entry.
|
|
Determine the unemployment taxes
: During 2016, Jeff Smallwood worked for two different employers. Until May, he worked for Rowland Construction Company in Ames, Iowa, and earned $22,000. The state unemployment rate for Rowland is 4.6%. He then changed jobs and worked for Ford Improve..
|
|
Compute the unit product cost for year one
: Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Compute the unit product cost for year 1, year 2, and year 3. . Pre..
|
|
What was the change in shareholders equity
: Calculate the net income earned during the year. Assume that the change to shareholders’ equity results only from net income earned during the year. If total assets increased $25,000 and total liabilities decreased $7,000, what was the change in shar..
|
|
Prepare variable costing contribution format income
: During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $25 per unit) Prepare a variable costing contribution format income statement for each year. Reconc..
|
|
Prepare a worksheet to consolidate these two companies
: The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.70 per share on January 1, 2014. The remaining 20 percent of Devine’s shares also traded actively at $7.70 per share before and after Holtz’s a..
|
|
Explain the differences between job enlargement
: Explain the differences between job enlargement
|
|
What is the name of the parent and subsidiary firm
: In the business world, firms acquire other companies all the time. However, the questions arises how is the merger paid for. In this Journal you will be looking at how outside ownership benefits from either accepting a cash buyout or stock in the par..
|
|
Your firm should bid to perform the auditing services
: Imagine you work for an auditing firm. Your most recent task is to determine whether or not your firm should bid to perform the auditing services of a public company. Determine the fundamental kind of information that you need in order to make an inf..
|