(Solution) 13-43 Simple Comparison Of Variable And Absorption Costing Khalid Company Began Business On January 1, 20X1, With Assets Of $150,000 Cash And... | Snapessays.com


(Solution) 13-43 Simple Comparison of Variable and Absorption Costing Khalid Company began business on January 1, 20X1, with assets of $150,000 cash and...


13-43 Simple Comparison of Variable and Absorption Costing

 

Khalid Company began business on January 1, 20X1, with assets of $150,000 cash and equities of $150,000 capital stock. In 20X1, it manufactured some inventory at a cost of $60,000 cash, including $16,000 for factory rent and other fixed factory overhead. In 20X2, it manufactured nothing and sold half of its inventory for $43,000 cash. In 20X3, it manufactured nothing and sold the remaining half for another $43,000 cash. It had no fixed expenses in 20X2 or 20X3.

 

 

There are no other transactions of any kind. Ignore income taxes.

 

Prepare an ending balance sheet plus an income statement for 20X1, 20X2, and 20X3

 

under

 

(1) absorption costing and

 

(2) variable costing (direct costing).

 

Explain the differences in net income between absorption and variable costing.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: May 23, 2022

Solution~00021147602310.zip (25.37 KB)


This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

May 23, 2022

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • ■ As a reference for in-depth understanding of the subject.
  • ■ As a source of ideas / reasoning for your own research (if properly referenced)
  • ■ For editing and paraphrasing.

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

Get Free Price Quote