Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Variable costing and absorption costing the All-Fixed Company. It is the end of 2009. The All-Fixed Company began operations in January 2008. The company is so named because it has no variable costs. All its costs are fixed; they do not vary with output. The All-Fixed Company is located on the bank of a river and has its own hydroelectric plant to supply power, light, and heat. The company manufactures a synthetic fertilizer from air and river water and sells its product at a price that is not expected to change. It has a small staff of employees, all paid fixed annual salaries. The output of the plant can be increased or decreased by adjusting a few dials on a control panel. The following budgeted and actual data are for the operations of the All-Fixed Company. All-Fixed uses budgeted production as the denominator level and writes off any production-volume variance to cost of goods sold.1. Prepare income statements with one column for 2008, one column for 2009, and one column for the two years together, using (a) variable costing and (b) absorption costing.
2. What is the breakeven point under (a) variable costing and (b) absorption costing?
3. What inventory costs would be carried in the balance sheet on December 31, 2008 and 2009, under each method?
4. Assume that the performance of the top manager of the company is evaluated and rewarded largely on the basis of reported operating income. Which costing method would the manager prefer?Why?
The loader is predictable to have a four-year life and a $20,600 salvage value. Loader costs are recorded in Equipment account. Evaluate what is the journal Entry?
Calculate break-even in pounds if the sales price increases by 10% and fixed costs increase by £12,000 and calculate break-even in pounds if total sales increases by 10% and fixed costs increase by 10%.
Describe the types of actions the employees at New Fashions may have taken to reduce the accuracy of the standards set by the independent consultant. Why would employees take those actions? Is this behavior ethical?
Determine the potential value or accounting treatment for such future development efforts.
Perform the ACL test and prepare a report with your conclusions
How much could Betty include in her 2011 taxable income as interest? How much could Betty report as dividend income for 2011? How much could Betty include in taxable "Other Income" for her state lottery winnings?
Kerry is an employee of the university. She is provided with 10 giftvouchers worth $50 each for use at the local supermarket as a Christmasgift. Advise Kerry and the University of the Tax Consequences of thistransaction.
Move document-Warehouse employees and Shipping employees should sign picking ticket to document transfer of inventory from the Warehouse to the Shipping department
Prepare a contribution income statement for the month based on the actual sales. Present the income statement - Determine whether the company should discontinue operating the Consumer Division.
Under FAS 123R, how would this transaction be reported in SAS's 12/31/09 year-end financial statements-would these terminated options result in some sort of an adjustment? If there is an adjustment, please make the appropriate entry or entries?
Advise the directors of Beda Ltd of the requirements of AASB 127 in respect of the control criterion and how they would apply to this investment.
Suggest when could Bell Mountain buy the new accounting system?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd