On January 1, 2011, Folk Company changed from the average cost method to the FIFO method to account for its inventory. Ending inventory for each method was given below. Folk Company accrues tax expense on December 31 of each year and pays the tax in April of the following year. The income tax rate is 30%. What is the net income to be reported in 2011 after the change to the FIFO inventory method? a. 1,610,000 b. 2,300,000 c. 1,750,000 d. 1,890,000
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6. On January 1, 2011, Folk Company changed from the average cost method to the FIFO method to account for its inventory. Ending inventory for each method was given below. Folk Company accrues tax expense on December 31 of each year and pays the tax in April of the following year. The income tax rate is 30%. What is the net income to be reported in 2011 after the change to the FIFO inventory method?
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- . Consider the following information: ITEM SALES(Units) SALES VARIABLE COST A 9000 $54000 5.95 B 12000 60000 3.75 C 15000 60000 3.50 D 25000 75000 1.75 Costs of the period are as follows (salaries $45000, rent $10000, depreciation $8000, furniture and computers $24000, raw materials $ 120,000, insurance $5000, periodic maintenance $4000, interest expense $3000, utilities (fixed) $4000, property tax $3000, advertising $9000 (set at the beginning of the year), and new cars $62000). What is the breakeven point for all items? How many units of item A, B, C, & D are needed to breakeven? Calculate the profit of item A.SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…Given the following information: Prime Costs $ 11000 Conversion Costs $ 30000 Direct Materials Purchased $ 51000 Direct Materials Used $ 11000 Change in finished goods inventory $ 30000 increase Change in WIP $ 25000 decrease Calculate the total manufacturing costs.
- If the beginning finished goods inventory 250 000 ID. prime cost 250 000 ID, ending finished goods inventory 160 000 ID, manufacturing overhead expenses 180 000 ID cost of goods manufactured 1224 000 ID, the cost of goods *-: sold areIf the cost of goods sold is $100,000 and the ending finished goods inventory is$30,000 higher than the beginning finished goods inventory, what must be the amountof the cost of goods manufactured?a. $30,000b. $100,000c. $130,000d. $70,000Waterway Industries’s cost of goods sold is $ 520000 variable and $ 290000 fixed. The company’s selling and administrative expenses are $ 400000 variable and $ 460000 fixed. If the company’s sales is $ 1950000, what is its net income? $ 1140000 $ 280000 $ 1030000 $ 1200000
- The following data relates to Campus Goods Inc:  Required: Based on the above data determine the following: 8A. Cost of Goods Sold in $ is ___________. 250,000 100,000 150,000 220,000 unanswered 8B. Gross Profit in $ and % is ___________ and ___________ respectively. 250,000 and 20% 180,0000 and 40% 180,000 and 45% 220,000 and 45% unanswered 8C. Operating expenses is ___________. 100,000 150,000 200,000 120,000 unanswered 8D. Operating profit in $ is ___________. 55,000 65,000 80,000 70,000The Variable Cost of Goods Sold in the Marin Company totals P325,000. Fixed selling and administrative expenses totaled P115,000 and variable selling and administrative expenses were P210,000. If Marin Company's contribution margin totaled P590,000, then sales is? What is the effect of this in the ompany of Marin? a.P650,000 B.Ph 915,000 C.Ph 1,030,000 D.Ph 1,125,000 Topic: Cost Volume Profit Please explain each clearly and solve in good form. Format: 1. What is the nature of the problem? 2. What is being asked in the problem? 3. Solution (with clear explanation on how it happened and step by step solution) (also explain why did you multiply, add, minus or divide) (explain every detail and the concept) 4. Conclusion (explain how you can relate it in real situation)The Variable Cost of Goods Sold in the Marin Company totals P325,000. Fixed selling and administrative expenses totaled P115,000 and variable selling and administrative expenses were P210,000. If Marin Company's contribution margin totaled P590,000, then sales is? What is the effect of this in the ompany of Marin? a.P650,000 B.Ph 915,000 C.Ph 1,030,000 D.Ph 1,125,000 Topic: Cost Volume Profit Please explain the nature of the problem, what is being asked, how to solve it and what would be the effect of that in Marin Company
- A certain company is selling a specific product with a selling price of P105.00. Data regarding costs incurred are as follows: Direct Materials P600,000 Direct Labor 400,000 Variable Factory Overhead 250,000 Fixed Factory Overhead 850,000 Variable Selling and Other Expenses Per Unit 2.50 Fixed Selling and Other Expenses 250,000 Data regarding units are as follows: Case A Case B Case C Beginning Inventory 20,000 15,000 5,000 Ending Inventory 10,000 15,000 25,000 Produced 50,000 25,000 40,000 Requirements: Compute for the product cost per unit for each case under both absorption costing and variable costing. Compute for the inventory cost for each case under both absorption costing and variable costing. Prepare an income statement for each case under both absorption costing and variable costing.Raw Material Consumed is 25000 OMR, Prime cost is 338000 OMR, Cost of Production is 471800 OMR, cost of goods manufactured 485000 OMR Opening stock of work in progress is 27500, and closing stock of Work in progress is 14000 OMR, Opening stock of finished goods is 20000, and closing stock of finished goods is 13750 OMR, Calculate cost of goods available for sale Select one: a. None of These b. 450000 OMR c. 505000 OMR d. 605000 OMR1.The following data are given by Domestic Mfg. Corp.: Increase in Finished Goods Inventory 12,000.00 Decrease in Raw materials Inventory 10,000.00 Increase in Work in Process Inventory 5,000.00 Purchase Returns and Allowances 6,000.00 Freight In 7,000.00 Labor Cost 65,000.00 Factory Overhead 25,000.00 Cost of Goods Sold 153,000.00 How much must be raw materials purchases? 2. The ff. information is provided by Maunlad Mfg. Corp.: Cost of…