Sunrise Pools and Spas manufactures fibreglass forms for in-ground pools and swim spas for all-season use....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sunrise Pools and Spas manufactures fibreglass forms for in-ground pools and swim spas for all-season use. The company uses variable costing for Internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the data for their swim spa business in years 1, 2, and 3 shown below. The company's fixed manufacturing overhead per unit was constant at $4,300 for all three years: Year 1 Year 2 Year 3 Inventories: Beginning (units) 180 220 160 Ending (units) Variable costing operating income 220 $294,200 160 $271,000 260 $253,600 Required: 1. Determine each year's absorption costing operating Income. Present your answer in the form of a reconciliation report. Absorption Costing Operating Incomes Year 1 Year 2 Year 3 Variable costing operating income Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income $ 0 $ 0 $ 0 2-a. In year 4, the company's variable costing operating Income was $258,200 and its absorption costing operating Income was $229,200. Did Inventories increase or decrease during year 4? O Increase O Decrease 2-b. How much fixed manufacturing overhead cost was deferred or released from inventory during year 4? Fixed manufacturing overhead cost inventory during year 4 released from deferred in Sunrise Pools and Spas manufactures fibreglass forms for in-ground pools and swim spas for all-season use. The company uses variable costing for Internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the data for their swim spa business in years 1, 2, and 3 shown below. The company's fixed manufacturing overhead per unit was constant at $4,300 for all three years: Year 1 Year 2 Year 3 Inventories: Beginning (units) 180 220 160 Ending (units) Variable costing operating income 220 $294,200 160 $271,000 260 $253,600 Required: 1. Determine each year's absorption costing operating Income. Present your answer in the form of a reconciliation report. Absorption Costing Operating Incomes Year 1 Year 2 Year 3 Variable costing operating income Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income $ 0 $ 0 $ 0 2-a. In year 4, the company's variable costing operating Income was $258,200 and its absorption costing operating Income was $229,200. Did Inventories increase or decrease during year 4? O Increase O Decrease 2-b. How much fixed manufacturing overhead cost was deferred or released from inventory during year 4? Fixed manufacturing overhead cost inventory during year 4 released from deferred in
Expert Answer:
Answer rating: 100% (QA)
Lets start by calculating each years absorption costing operating income using the provided data 1 Determine each years absorption costing operating i... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
Students also viewed these accounting questions
-
Question 13 what is the best statement to make about this list for [x] and [c]? [8] d_t U_ # a_a O it's correct O_# [x] I_# E_+ E_^ _#I_a I_ [x] is missing [i_#] [x] is missing [e_#] O the lists are...
-
For years Samsung has had a proper market equilibrium with its smartphone's prices. However, the introduction of the Samsung Galaxy S10 plus allowed Samsung to produce a more expensive version of...
-
Can you unblur the " Portfolio Management Paper #1 (1).docx" document titled, "Feynman: Learning and Portfolio Theory Using CRSP and PMSP?" I would only like to review that one document, so I was...
-
For the attractive-nuisance doctrine to apply, the possessor need not be aware that children are likely to trespass on his land or have reason to know that the condition poses an unreasonable risk of...
-
Name several locations where a tax researcher would find the text of the current Internal Revenue Code.
-
When are objects on the periphery of your vision most noticeable?
-
Discuss the factors that influence pricing decisions.
-
a. You created an interactive StaffDinnerEvent class that obtains all the data for a dinner event for Carlys Catering, including details about the event and all the staff members required to work at...
-
E9.19 (LO 3) (Gross Profit Method) Presented below is information related to Jerrold Ltd. for the current year. 50 J Beginning inventory Purchases Total goods available for sale Sales O 810 LCNRV...
-
Net Sales = Total credit sales Sales Discounts Sales Returns and Allowances true or false
-
if a firm's management wants to use its discretion over accounting choices to decrease operating income in the next period, they are most likely to: a. decrease the assumed useful lives of plant and...
-
There are three ways of classifying units that have been reworked. What are those classifications and how do companies account for each of those categories? DISCUSS.
-
The Algonquin Company developed the following budgeted life-cycle income statement for two proposed products. Each product's life cycle is expected to be two years. Sales Cost of goods sold Gross...
-
(a) What actions did HP take to improve their IDC performance (a) by reducing the component devaluation cost and (b) by keeping price protection to a minimum? (b) How did the IDC measures link to...
-
Total production costs for Jordan, Inc. are budgeted at P2,300,000 for 50,000 units of budgeted output and P2,800,000 for 60,000 units of budgeted output. Because of the need for additional...
-
What are some of the possible reasons that actual results may differ from what had been budgeted at the beginning of a period?
-
The Taylor's series expansion for cosx about x = 0 is given by: where x is in radians. Write a user-defined function that determines cosx using Taylor's series expansion. For function name and...
-
In preparing monthly financial statements, overapplied overhead is rep orated in the balance sheet as a(an): (a) prepaid expense. (b) unearned revenue. (c) noncurrent asset. navigator (d) noncurrent...
-
Hal Adelman is studying for an accounting midterm examination. What should Hal know about how management may use job cost data?
-
What are the major differences in measurement principles between the Anglo-Saxon, Nordic, Germanic, Latin, and Asian countries?
Study smarter with the SolutionInn App