Use the following information to calculate cash paid for income taxes: Income Tax Expense $ 65,000...

Use the following information to calculate cash paid for income taxes:


Income Tax Expense	$	65,000
Income Tax Payable, January 1		24,000
Income Tax Payable, December 31		14,500

Multiple Choice

$65,000.
$89,000.
$79,500.
$55,500.
$74,500.

A manufacturer reports the following costs to produce 24,000 units in its first year of operations: Direct materials, $24 per unit, Direct labor, $20 per unit, Variable overhead, $216,000, and Fixed overhead, $288,000. Of the 24,000 units produced, 23,200 were sold, and 800 remain in inventory at year-end. Under absorption costing, the value of the inventory is:

Multiple Choice

$35,200.
$42,400.
$52,000.
$44,800.
$26,400.

Solutions

Expert Solution

Question #1

Correct Answer = Option #5: $ 74,500 is the cash paid for Income Taxes

Working
Income tax payables Jan 1	$ 24,000
Add: Income tax expense	$ 65,000
Income tax payables 31 Dec	$ (14,500)
Income tax paid in cash	$ 74,500 = Answer

Question 2

Correct Answer = Option #3: $ 52,000

A	Direct material	$ 24
B	Direct Labor	$ 20
C = 216000 / 24000 units	Variable Overhead	$ 9
D = 288000 / 24000 units	Fixed Overhead per unit	$ 12
E = A+B+C+D	Total manufacturing cost per unit	$ 65
F	Units in ending Inventory	800
G = E/F	Value of Inventory	$ 52,000 = Answer

ekkarill92 answered 1 year ago

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