(Answered) Question - enrg inc produces trail mix packaged for sale in

Accounting

Question - EnRG Inc., produces trail mix packaged for sale in convienience stores in the NE section of the US. At the beginning of April 2008, the company has no inventory of trail mix. Demand for the product is expected to remain constant at 50,000 bags per month. The company plans to produce to demand, 50,000 bags in April, however many of the employees take vacation in June, so the company will make 70,000 bags in May and 30,000 bags in June.

Costs for the 3 months are expected to remain unchanged. The costs for revenue for April, May and June are expected to be:

Sales revenue: $6/bag

Direct material cost: $0.80/bag

Direct manufactoring labor costs: $0.45/bag

Variable manufacturing overhead costs: $0.30/bag

Variable Selling Costs: $0.15/bag

Fixed manufactoring overhead costs: $105,000/month

Fixed Admin Costs: $35,000/month

Suppose the actual costs, marketing demand, and levels of production for April, May and June are as expected.

Compute operating income for April, May and June under variable costing?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92587152
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - retained earnings at 111x was 150000 and at

Question - Retained earnings at 1/1/1X was $150,000 and at 12/31/1X it was $200,000. During 2010, cash dividends of $50,000 were paid and a stock dividend of $30,000 was issued. Both dividends were properly charged to re ...

Question - beyer company is considering the purchase of an

Question - Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return ...

Question - on january 1 2016 company x had an inventory

Question - On January 1, 2016, Company X had an inventory balance of $200,000. During the year, Company X had net purchases of $1,000,000 and net sales of $900,000. Historically, Company X's gross profit ratio has been 4 ...

Question - jennifer is a cpa and a single taxpayer using

Question - Jennifer is a CPA and a single taxpayer using the standard deduction. In 2018, her CPA practice generates net income of $162,000 and she has no other income or losses. Jennifer's taxable income before the QBI ...

Question - at december 31 2016 grouper corporation reported

Question - At December 31, 2016, Grouper Corporation reported current assets of $384,870 and current liabilities of $206,100. The following items may have been recorded incorrectly. 1. Goods purchased costing $22,150 wer ...

Question - the ward county hospital center wchc wants to

Question - The Ward County Hospital Center (WCHC) wants to buy a new mobile primary care van to use in screening residents in an underserved local neighborhood. The van will last five years and costs sixty-eight thousand ...

Question - colorado corporation was organized on january 1

Question - Colorado Corporation was organized on January 1, 2006, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash an ...

Question - calculation of book valueon june 1 20 a

Question - Calculation of Book Value On June 1, 20 a depreciable asset was acquired for $4,560. The asset has an estimated useful life of five years (60 months) and no salvage value. Using the straight-line depreciation ...

Question - convertible preferred stocklove company issued

Question - Convertible Preferred Stock Love Company issued LDDEI shares of convertible preferred stock, $1,000 par, for 103 (103% of face value) on June 30, 2014. Each preferred share was convertible into 10 shares of co ...

Question - hillary clinton is the vice president of finance

Question - Hillary Clinton is the Vice President of Finance for Trump Industries. At a recent finance meeting, Hillary made the following statement: "the managers of a company should use the same information as the share ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert