Question
In: Accounting
Question 2 The income statement for Tiger Co. for 2015 is summarized as follows: Sales...
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Question 2 |
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The income statement for Tiger Co. for 2015 is summarized as follows: |
Sales (200,000 units) $3,000,000
Variable costs 1,000,000
Contribution margin 2,000,000
Fixed costs (80% manufacturing related) 500,000
Operating income $1,500,000
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Variable costs include: |
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Direct materials $1.50/unit $300,000 |
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Direct labour $2.00/unit $400,000 |
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Variable MOH $1.25/unit $250,000 |
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Variable selling & admin $0.25/unit $50,000 |
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There were 0 units in beginning inventory, and 50,000 units in ending inventory. |
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Required - |
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a) Calculate the total cost of ending inventory for 2015 under the variable costing method. |
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b) Calculate the total cost of ending inventory for 2015 under the absorption costing method. |
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c) Create an absorption costing income statement for Tiger Co for 2015. |
Solutions
Expert Solution
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Question 2 |
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The income statement for Tiger Co. for 2015 is summarized as follows |
Sales (200,000 units) $3,000,000
Variable costs 1,000,000
ekkarill92 answered 2 years agoRelated Solutions
Joyner Company’s income statement for Year 2 follows: Joyner Company’s Income Statement Sales $ 790,000 Cost...
Joyner Company’s income statement for Year 2 follows:
Joyner Company’s
Income Statement
Sales
$
790,000
Cost of goods sold
406,000
Gross margin
384,000
Selling and administrative expenses
216,000
Net operating income
168,000
Nonoperating items:
Gain on sale of equipment
6,000
Income before taxes
174,000
Income taxes
52,200
Net income
$
121,800
Its balance sheet amounts at the end of Years 1 and 2 are as
follows:
Joyner Company's
Balance Sheet
Year 2
Year 1
Assets
Cash
$
221,000
$
207,500...
Joyner Company’s income statement for Year 2 follows: Joyner Company’s Income Statement Sales $ 797,000 Cost...
Joyner Company’s income statement for Year 2 follows: Joyner
Company’s Income Statement Sales $ 797,000 Cost of goods sold
411,000 Gross margin 386,000 Selling and administrative expenses
217,000 Net operating income 169,000 Nonoperating items: Gain on
sale of equipment 6,000 Income before taxes 175,000 Income taxes
70,000 Net income $ 105,000 Its balance sheet amounts at the end of
Years 1 and 2 are as follows: Joyner Company's Balance Sheet Year 2
Year 1 Assets Cash $ 195,300 $ 191,500...
Foxboro Company’s income statement for Year 2 follows: Foxboro Company Income Statement Sales $ 719,000 Cost...
Foxboro Company’s income statement for Year 2 follows: Foxboro
Company Income Statement Sales $ 719,000 Cost of goods sold 142,000
Gross margin 577,000 Selling and administrative expenses 216,000
Net operating income 361,000 Gain on sale of equipment 6,000 Income
before taxes 367,000 Income taxes 146,800 Net income $ 220,200 Its
balance sheet amounts at the end of Years 1 and 2 are as follows:
Foxboro Company Balance Sheet Year 2 Year 1 Assets Cash $ 167,800 $
54,300 Accounts receivable...
Joyner Company’s income statement for Year 2 follows: Sales $ 714,000 Cost of goods sold ...
Joyner Company’s income statement for Year 2 follows:
Sales $ 714,000
Cost of goods sold 207,000
Gross margin 507,000
Selling and administrative expenses
217,000
Net operating income 290,000
Nonoperating items:
Gain on sale of equipment 7,000
Income before taxes 297,000
Income taxes 89,100
Net income $ 207,900
Its balance sheet amounts at the end of Years 1 and 2 are as
follows:
Year 2 Year 1
Assets ...
Freeport Company's income statement for last year is as follows: Income Statement Sales $300,000 Less: Cost...
Freeport Company's income statement for last year is as
follows:
Income Statement
Sales
$300,000
Less: Cost of goods sold
200,000
Gross margin
100,000
Less: Operating expenses
60,000
Income before taxes
40,000
Less: Income taxes
16,000
Net income
$24,000
The beginning and ending balances for last year are available
for the following accounts:
Ending
balance
Beginning
balance
Accounts receivable
$32,000
$40,000
Inventory
60,000
50,000
Prepaid expenses
12,000
8,000
Accumulated depreciation
(40,000)
(30,000)
Accounts payable
30,000
45,000
Accrued liabilities
16,000
10,000
Income...
Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. TIGER...
Presented below is the 2018 income statement and comparative
balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2018
($ in thousands)
Sales revenue
$
9,000
Operating expenses:
Cost of goods sold
$
3,800
Depreciation
280
Insurance
300
Administrative and other
2,200
Total operating expenses
6,580
Income before income taxes
2,420
Income tax expense
968
Net income
$
1,452
Balance Sheet Information ($ in thousands)
Dec. 31,2018
Dec. 31, 2017
Assets:
Cash
$...
Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER...
Presented below is the 2021 income statement and comparative
balance sheet information for Tiger Enterprises. TIGER ENTERPRISES
Income Statement For the Year Ended December 31, 2021 ($ in
thousands) Sales revenue $ 8,200 Operating expenses: Cost of goods
sold $ 3,560 Depreciation expense 440 Insurance expense 300 General
and administrative expense 2,000 Total operating expenses 6,300
Income before income taxes 1,900 Income tax expense (800 ) Net
income $ 1,100 Balance Sheet Information ($ in thousands) Dec.
31,2021 Dec. 31,...
Presented below is the 2016 income statement and comparative balance sheet information for Tiger Enterprises. TIGER...
Presented below is the 2016 income statement and comparative
balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2016
($ in thousands)
Sales revenue
$
12,500
Operating
expenses:
Cost of goods sold
$
4,500
Depreciation
350
Insurance
650
Administrative and other
2,900
Total
operating expenses
8,400
Income before income
taxes
4,100
Income tax
expense
1,640
Net income
$
2,460
Balance Sheet
Information ($ in thousands)
Dec. 31, 2016
Dec. 31, 2015
Assets:
Cash...
Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER...
Presented below is the 2021 income statement and comparative
balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Sales revenue
$
7,420
Operating expenses:
Cost of goods sold
$
3,430
Depreciation expense
310
Insurance expense
170
General and administrative expense
1,870
Total operating expenses
5,780
Income before income taxes
1,640
Income tax expense
(670
)
Net income
$
970
Balance Sheet Information ($ in thousands)
Dec. 31,2021
Dec. 31,...
Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER...
Presented below is the 2021 income statement and comparative
balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Sales revenue
$
7,960
Operating expenses:
Cost of goods sold
$
3,520
Depreciation expense
400
Insurance expense
260
General and administrative expense
1,960
Total operating expenses
6,140
Income before income taxes
1,820
Income tax expense
(760
)
Net income
$
1,060
Balance Sheet Information ($ in thousands)
Dec. 31,2021
Dec. 31,...
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