The adjustment of underapplied manufacturing overhead cost results in all the following , EXCEPT a. increase in net operating income . b . increase in cost of goods c. sold decrease in net operating income . d. none of the given answers
Q: From the following figures, prepare a Reconciliation Statement: Net loss as per costing records Work…
A: After comparing the costing books and financial books ,the differences or causes of differences are…
Q: TRUE OR FALSE STATEMENT 1: If the ending inventory of finished goods is understated, net income…
A: Ending inventory is the value of goods lying in the stock on the date of closing the books.
Q: The adjustment of underapplied manufacturing overhead cost results in: O a. decrease in cost of…
A:
Q: The adjustment of underapplied manufacturing overhead cost results in: O a. decrease in net…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: ssuming that Sheffield closes under- or overapplied overhead to Cost of Goods Sold, calculate the…
A: 1) Particulars Amount Indirect Material (149,300 x 20/100) 29,860 Indirect Labor 168,000…
Q: Sales commissions are classified as: Non-manufacturing costs. Product costs. Indirect labor. None of…
A: Option first is correct because sales commissions are the expenses that is related to sales. It is…
Q: Identify if true or false When inventory decreases, the net operating income under absorption…
A: Costing is a process under which the information about the costs incurred by the business unit is…
Q: It’s common in the electronics industry for unit costs of raw materials inventories to decline over…
A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…
Q: When inventory increases, the fixed manufacturing overhead is deferred in inventory under:"…
A: Under Variable costing method, only variable cost is assigned to inventory.
Q: When inventories are decreasing, _________ costing will lead to lower profits because…
A: When inventories are decreasing, absorption costing will lead to lower profits because capitalized…
Q: Which of the following may not be the reason for a change in gross profit to occur? * G O Change of…
A: Gross profit is the amount of sales revenue which is over and above cost of goods sold. Cost of…
Q: In comparing the absorption and variable cost methods, each of the following statements is true…
A: Variable Costing: The variable costing is a method used to allocate the fixed manufacturing overhead…
Q: The adjustment of overapplied manufacturing overhead cost results in: а. none of the given answers O…
A: When overhead is overapplied to inventory, more overhead is accumulated than is currently incurred.…
Q: When the number of units sold exceed the number of units produced, income reported under absorption…
A: Fixed overhead costs include those costs which shall not vary with the production output. In…
Q: Which condition would cause absorption-costing net income to be lower than variable-costing net…
A: Solution: "Units sold exceeded units produced" would cause absorption-costing net income to be lower…
Q: Which formula reconciles the difference between absorption and variable-costing income? a. Change…
A: Net operating income under absorption costing = Net operating income under variable costing + Change…
Q: Why is variable costing not in compliance with generally accepted accounting principles? a. Fixed…
A: The generally accepted accounting principles are following the absorption method for the valuation…
Q: O a. None of given answer is correct. O b. Cost of Goods Sold will be lower if the overapplied…
A: The correct answer is:- b. Cost of goods sold will be lower if the overapplied overhead is closed…
Q: Sales commissions incurred based on units of product sold during a given period is an example of a…
A: Please check the step 2
Q: S1: Abnormal spoilage is considered a period cost. S2: Backflush costing requires fewer allocations…
A: Product costs are direct costs incurred in producing the product and can be directly allocated to…
Q: Which of the following statement is false? Multiple Choice a)The contribution margin…
A: Ans. Absorption costing allocates fixed manufacturing overhead to a product whether or not it is…
Q: Misleading cost numbers are most likely the result of misallocating: A) direct material costs B)…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: In a manufacturing company, which of the following will affect gross profit? A change in the…
A: Manufacturing company is the company which uses the components, raw materials as well as parts in…
Q: variable costing
A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…
Q: g form
A:
Q: Variable selling expenses are a. Product costs under variable costing but period costs under…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Which of the following would reduce net profit margin but have no effect on gross profit margin? a)…
A: a) Commission paid to salesmen is a selling expense charged against net profit .b) Purchase price…
Q: If a company incurred a significant repairs and maintenance expense for a plant equipment ( used in…
A: Repairs and Maintenance Expense: The cost that is paid to guarantee that an asset continues to…
Q: Which of the following is not an example of a cost that varies in total as the number of units…
A: Option a is correct. As the production happens there is usage of machinery which will increase the…
Q: When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would…
A: When closing overapplied manufacturing overhead to Cost of Goods Sold, Gross profit will increase.…
Q: When production is greater than sales, fixed manufacturing overhead costs are: a. Deferred in…
A: Variable Costing: Variable costing is the method of costing in which only the variable production…
Q: S1 - Net income remains the same when revenue is treated as other income, additional revenue,…
A: Solution : Concept Net income is calculated after deducting all the expenses incurred from all the…
Q: May I ask for an explanation to the question for a better understanding. Thank you! Gross profit…
A: Gross profit is profit earned after deductions of cost of goods sold.
Q: What will be the difference in net earnings computed using variable costing as opposed to absorption…
A: Under variable costing, whole amount of fixed overhead will be charged in the income statement.…
Q: What is the ending balance in Finished Goods? (Show T-Account) Assuming that the company closes its…
A: Overapplied Overhead: If the actual overhead incurred in a period is less than the…
Q: variable costing
A: Option a is wrong because even if there is no change in the fixed costs in the beginning and ending…
Q: True or False. When the underapplied overhead is assigned to Cost of Goods Sold the effect is to…
A: Overheads: These are defined as the ongoing expenses that are incurred centrally in relation to a…
Q: Which of the following statements is true for a company that uses variable costing? Profit…
A: Profit fluctuates with sales Profit increases with increases in sales and vice versa. Product…
Q: Cost of Goods manufactured is equal
A: Cost of goods manufactured is the cost incurred in manufacturing goods. It is called COGM in short…
Q: Which of the following best describes a fixed cost? A. It may only change in total when such…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: In comparing the absorption and variable cost methods, each of the following statements is true…
A: Variable Costing:The variable costing is a method used to allocate the fixed manufacturing overhead…
Q: What factor, related to manufacturing costs, causes the difference in net earnings computed using…
A: The question is related to Marginal Costing and is multiple choice question.
Q: In average cost method the new average price is calculated: a) after the whole period, b) after each…
A: Average cost method is used in the valuation of inventory. Under this method, cost per unit is…
Q: When production exceeds sales, a. Ending inventory under variable costing will exceed ending…
A: Option no. (b) is correct.
Q: Which of the following may not be the reason for a change in gross profit to occur? a. Increase of…
A: In the given case any changes made in the manufacturing process that is raw material,wages and…
Q: When reconciling variable costing and absorption costing net operating income, fixed overhead costs…
A: Solution: S1. When reconciling variable costing and absorption costing net operating income, fixed…
Q: During the production process, company incurred normal spoilage and abnormal loss. Such losses are…
A: Normal loss are those losses which is unavoidable therefore included in the cost of good units in…
Q: Show the solution in good accounting form. Thank you! Using FIFO, compute for the total cost…
A: The abnormal loss would be calculated based on the price of finished goods units. To determine the…
Q: Which of the following is true of abnormal spoilage? a. It is considered to be part of production.…
A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The adjustment of underapplied manufacturing overhead cost results in all :the following, EXCEPT none of the given answers .increase in net operating income .b .decrease in net operating income .c increase in cost of goods sold .d OThe adjustment of overapplied manufacturing overhead cost results in: a. none of the given answers O b. decrease in net operating income. c. decrease in cost of goods sold O d. increase in cost of goods soldIn the immediate write-off approach, under-applied overhead is regarded as: a. an increase in current income b. an increase in the cost of inventory c. a decrease in cost of goods sold d. an increase in cost of goods sold
- Which of the following statements is false? O a. Product costs are inventoriable costs O b. Product costs show up on the income statement in cost of goods sold O c. Product costs are automatically deducted and expensed during the current accou period O d. Product costs become expenses when the units are soldWhich formula reconciles the difference between absorption and variable-costing income? a. Change in inventory units x predetermined variable-overhead rate per unit. b. Change in inventory units / predetermined variable-overhead rate per unit. c. Change in inventory units x predetermined fixed-overhead rate per unit d. Change in inventory units / predetermined fixed-overhead rate per unit. e. Change in net income x fixed-overhead rate per unitWhat will be the difference in net earnings computed using variable costing as opposed toabsorption costing if the ending inventory increases with respect to the beginning inventories interms of units?a. There will be no difference in net earnings.b. Net earnings computed using variable costing will be higher.c. The difference in net earnings cannot be determined from the information given note.d. Net earnings computed using variable costing will be lower
- When overhead is overapplied, is the balance of Cost of Goods Sold, before adjustment, too low ortoo high? Why?When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would be true? Net income will decrease. Cost of Goods Sold will increase. Gross profit will increase. O Work in Process will decrease.What affect would closing an OVERAPPLIED Manufacturing Overhead account to Cost of Goods Sold have on the accounting records? Group of answer choices A. Cost of Goods Sold would increase B. Net Income would decrease C. Cost of Goods Sold would decrease Both A & B
- Under absorption costing, fixed manufacturing overhead costs are:A. are deferred in inventory when production exceeds sales.B. are always treated as period costs.C. are released from inventory when production exceeds sales.D. none of the aboveBelow is the information on a project that you are evaluating for deciding on its worthiness as an investment. ABC company is considering a new investment whose data are shown below. WACC for the project under consideration Net investment in fixed assets (immediate) Required new working capital (immediate) Working capital from the end of the first year onwards as a Percentage of Sales Straight line deprec. Rate (every year end from the end of year 1} Sales revenues (starting at the end of year 1) Operating cost excluding depreciation, (starting at the end of year 1) 10% 75000 15000 25% 33.33% 75000 25000 Tax Rate Annual increase in Operating Costs each year from year 2 onwards Annual increase in Sales revenue from the end of the year 2 onwards Depreciation: Fixed assets to be fully depreciated in books using the straight line method over 4 years to zero Salvage value of the fixed assets at the end of the project life 35% 6% 9750Which of the following best describes a fixed cost? A. It may only change in total when such change is unrelated to changes in production volume (i.e. inflation). B. It may change in total when such change is related to changes in production volume. C. It is constant per unit of change in production volume. D. It may change in total when such change depends on production volume within the relevant range. QUESTION 2 Period costs are best described as those costs: A. Incurred periodically (i.e. not on a regular basis). B. Incurred as a result of activities that occur inside the production building. C. That increase as a result of a change in volume for a particular period. D. Incurred as a result of activities that occur outside of the production building. QUESTION 3 What is the result when the contribution margin ratio increases? A. Break-even point increases B. Fixed Cost…