Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $ 122Units in beginning inventory 290Units produced 6,600Units sold 6,590Units in ending inventory 300Variable costs per unit:Direct materials $ 42Direct labor $ 26Variable manufacturing overhead $ 2Variable selling and administrative expense $ 21Fixed costs:Fixed manufacturing overhead $ 151,800Fixed selling and administrative expense $ 46,130The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.Required:a. Prepare a contribution format income statement for the month using variable costing.b. Prepare an income statement for the month using absorption costing.

Answer:

Part a

Nelter Corporation

Contribution format income statement for the month using variable costing

Sales ($ 122 x 6,590)                                                           $803,980

Less Cost of Goods Sold

Beginning Inventory                                          $20,300

Add Cost of Goods Manufactured                 $462,000

Less Ending Inventory                                      ($21,000)    ($461,300)

Contribution                                                                           $342,680

Less Expenses

Selling and administrative expense :

Variable  ($21 x 6,590)                                    $138,390

Fixed                                                                   $46,130

Fixed manufacturing overhead                      $ 151,800     ($336,320)

Net Income (Loss)                                                                      $6,360

Part b

Nelter Corporation

Income statement for the month using absorption costing

Sales ($ 122 x 6,590)                                                           $803,980

Less Cost of Goods Sold

Beginning Inventory                                          $26,970

Add Cost of Goods Manufactured                  $613,800

Less Ending Inventory                                     ($27,900)    ($612,870)

Gross Profit                                                                              $191,110

Less Expenses

Selling and administrative expense :

Variable  ($21 x 6,590)                                    $138,390

Fixed                                                                   $46,130    ($184,520)

Net Income (Loss)                                                                    $6,590

Explanation:

Variable Costing Calculations

Unit Product Cost = Variable Manufacturing Costs

                              = $ 42 + $ 26 + $ 2

                              = $ 70

Cost of Goods Manufactured = 6,600 x $ 70 = $462,000

Opening Inventory = 290 x $ 70 = $20,300

Ending Inventory =  300 x $70 = $21,000

Absorption Costing Calculations

Unit Product Cost = Variable Manufacturing Costs

                              = $ 42 + $ 26 + $ 2 + ($ 151,800 ÷ 6,600)

                              = $ 42 + $ 26 + $ 2 + $23

                              = $93

Cost of Goods Manufactured = 6,600 x $93 = $613,800

Opening Inventory = 290 x $93 = $26,970

Ending Inventory =  300 x $93 = $27,900

Diving Fiasco. Mike, who owns a dive shop in the United States, decides to take a group of his customers diving in U.S. waters. Mike is aware that sharks occasionally visit the area where the divers will be visiting. He is also aware that while stingrays are usually tame, they can become aggressive when fed. Mike does not reveal that information to the group of divers going with him. The divers go down into the water, and some have squid with which to feed the stingrays. During the dive, one of the stingrays becomes agitated and latches onto diver Susie's arm. Susie is so disconcerted that she drops her regulator (her breathing device) from her mouth and is in considerable difficulty. Another diver, Billy, encounters a shark, which snaps at him. While the shark does not actually bite Billy, the attack results in damage to his diving equipment. Mike, who is in charge of the dive, does nothing to help and leaves the other divers to return to the boat because the dive turned out to be more trouble than expected. Wendy, another diver on the trip, also returns to the boat without doing anything to help the divers in distress. Sam, on the other hand, goes to rescue the divers who are in distress. He manages to do so but in the process he pulls his back and requires medical care. All divers are very unhappy with Mike. Billy and Susie are annoyed that Mike did not come to their assistance. Which is true regarding Mike's duty to provide assistance to them during the dive?
A) Mike had no duty to provide any assistance to them.
B) Mike had a duty to come to their aid because he arranged the dive and was charging them.
C) Mike had a duty to come to their assistance only if he had specifically agreed to do so prior to the dive.
D) Mike had a duty to come to their assistance only if they were minors.
E) Mike had a duty to come to their assistance only if no one else did so.

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Drag each label to the correct location on the image.
Identify the features of stocks and bonds.

Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $12,000. The estimated useful life was four years, and the residual value was $960. Assume that the estimated productive life of the machine was 9,200 hours. Actual annual usage was 3,680 hours in year 1; 2,760 hours in year 2; 1,840 hours in year 3; and 920 hours in year 4.
Required:
1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)
a. Straight-line.
b. Units-of-production (use four decimal places for the per unit output factor).
c. Double-declining-balance.

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Select the correct answer.

In terms of market research, which statement describes an advantage for businesses?

O Market research agencies always collect accurate market information, regardless of their client's guidance.

O Secondary sources are inexpensive and can meet any business's market research needs.

O Primary research methods, such as interviews, are highly reliable because respondents always give their honest opinions.

A business can explore new market opportunities with the help of accurate market research data.

Submit

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As of January 31 As of February 28
Inventory account balances:
Raw materials inventory $42,000 $30,000
Work in process inventory $9,200 $20,600
Finished goods $56,000 $33,500
Additional information for the month ended February 28:
Raw materials purchased $198,000
Factory payroll $150,000
Actual factory overhead costs:
Indirect materials $15,000
Indirect labor $34,500
Other overhead costs $13,500
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Predetermined overhead rate (based on direct labor costs) = 55% of DL costs
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a. Cost of direct materials used.
b. Total manufacturing costs.
c. Cost of goods manufactured.
d. Cost of goods sold.(ignore effects of underapplied / overapplied overhead)
e. Gross profit.
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daily
annually
never
hourly

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what effect does a rise in fuel prices have on product prices​

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Why do you think women occupy so few seats on boards of directors

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