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Hi can i get help from this please? It is the end of 2020. Evorgreep. All - Fixed Corporation began operations in Januaty 2019. The
Hi can i get help from this please?
It is the end of 2020. Evorgreep. All - Fixed Corporation began operations in Januaty 2019. The compury is so named because it has no varable costs. Alt is cests are fued, they do not wary with ovept, sells its product at a price that is not expectod to change. It has a smali statf of employees, all paid foed annual salaries. The output of the plant can be increased or decreasos by preseng a lew buttins on a koyboard. The following budgeled and actual data are for the operations of Evergreen Al - Fixed (Cick the icon to view the bodgeted and actual data.) Read the reguirements or a minus sign for an operating lonit) Data table The company uses budgeted production as the denominator level and writes off any production-volume variance to cost of goods sold. ariable costing an a Management adopted the policy, effective January 1, 2020, of producing only as much product as needed to fill sales orders. During 2020, sales were the same as for 2019 and were filled entirely from inventory at the start of 2020 . Requirements 1. Prepare income statements with one column for 2019 , one column for 2020 , and one column for the 2 years together using (a) variable costing and (b) absorption costing. 2. What is the breakeven point under (a) variable costing and (b) absorption costing? 3. What inventory costs would be carried in the balance sheet on December 31, 2019 and 2020 , under each method? 4. Assume that the performance of the top manager of Evergreen All - Fixed is evaluated and rewarded largely on the basis of reported operating income. Which costing method would the manager prefer? Why Step by Step Solution
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