contestada

galaxy, incorporated, a manufacturer of telescopes, began operations on june 1 of the current year. during this time, the company produced 60,000 units and sold 40,000 units at a sales price of $600 per unit. cost information for this year is shown in the following table: direct materials $ 90 per unit direct labor $ 75 per unit variable overhead $ 4 per unit fixed overhead $ 420,000 in total variable selling and administrative $ 80,000 in total fixed selling and administrative $ 520,000 in total given the galaxy, incorporated data, what is income using absorption costing?

Respuesta :

Parrain

The income, using absorption costing, and based on the revenue and cost to Galaxy Incorporated, can be found to be $ 16, 220, 000

How to find the income?

The income to Galaxy Incorporated, can be found by the formula:

= Sales - Direct materials - Direct labor  variable overhead - Fixed overhead - Variable selling and administrative cost - Fixed selling and administrative cost

The Direct materials and direct labor, as well as the variable overhead, are considered variable expenses under absorption costing.

The income to the company, based on the number of units of telescopes sold is:

= (40, 000 x 600 per unit ) - ( 90 x 40, 000 ) - ( 75 x 40, 000 ) - ( 4 x 40, 000 ) - 420, 000 - 80, 000 - 520, 000

= 24, 000, 000 - 3, 600, 000 - 3, 000, 000 - 160, 000 - 420, 000 - 80, 000 - 520, 000

= $ 16, 220, 000

Find out more in absorption costing at https://brainly.com/question/14609187

#SPJ1

Otras preguntas