Solved: Determine the absorption costing net operating income, Accounting Basics

+44 141 628 6080
[email protected]

Determine the absorption costing net operating income

Problem: Tribeca Company manufactures a variety of products. The following data pertain to the company's operations over the last two years:

Variable costing net operating income, last year      $82,700
Variable costing net operating income, this year      $87,800
Increase in ending inventory, last year                         900
Decrease in ending inventory, this year                     3,100
Fixed manufacturing overhead cost per unit                    $2

1. Determine the absorption costing net operating income for LAST year.

2. Determine the absorption costing net operating income for THIS year.

View Complete Question

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Determine the absorption costing net operating income

Reference No:- TGS01738833

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Sales volume at the expected level of sales

Of which $10,000 are costs not varying directly with sales volume at the expected level of sales. Required: Prepare a report that will be of more value in analyzing and appraising the performance of the manager of Department D for October. Comment

Q : Earnings power of a stock

One basic investing tenet is that prices appreciate to reflect the earnings power of a stock. Fast growing stocks should therefore outperform slow growing stocks.

Q : Allocated costs and expenses

The items of allocated costs and expenses represent general cots and expenses of the company that were allocated to the divisions.

Q : Compute the direct cost rate for each cost pool

Need to understand how to do the calculations. a) Compute the direct cost rate for each cost pool b) Compute the indirect cost rate for Overhead costs

Q : Determine the absorption costing net operating income

1. Determine the absorption costing net operating income for LAST year. 2. Determine the absorption costing net operating income for THIS year.

Q : Decision supporting calculations

Assume Gorvin Industries has no alternative use for the facilities presently devoted to production of the BINC gaskets. If the outside supplier offers to sell the gaskets for $0.46 each, should Gorvin Industries accept the offer? Please teach/show

Q : Needs of global business environment beyond the framework

Problem: Has the global business environment created needs that can no longer be addressed by the existing concept framework?

Q : Producing goods for inventory

Some management accountants argue that absorption costing provides an incentive to continue producing goods for inventory, even when sales decline.

Q : Reported for total income tax expense

In ABC's 2008 income statement, what amount should be reported for total income tax expense?

1953225

Questions
Asked

3,689

Active Tutors

1450944

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Determine the absorption costing net operating income

Reference No:- TGS01738833

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Sales volume at the expected level of sales

Q : Earnings power of a stock

Q : Allocated costs and expenses

Q : Compute the direct cost rate for each cost pool

Q : Determine the absorption costing net operating income

Q : Decision supporting calculations

Q : Needs of global business environment beyond the framework

Q : Producing goods for inventory

Q : Reported for total income tax expense

Is lifespan psychologists are unlikely to investigate

Outline a social issue that is important to you

Review a social, behavioral, or cultural factor

Why you feel unpleasantly hot and sweaty

Identify a true statement about validity

Examine historical literature to the most current period

Discuss social worker working with foster children

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Determine the absorption costing net operating income

Reference No:- TGS01738833

Recent Questions Asked Accounting Basics

Q : Sales volume at the expected level of sales

Q : Earnings power of a stock

Q : Allocated costs and expenses

Q : Compute the direct cost rate for each cost pool

Q : Determine the absorption costing net operating income

Q : Decision supporting calculations

Q : Needs of global business environment beyond the framework

Q : Producing goods for inventory

Q : Reported for total income tax expense

Asked Questions