On December 30, a fire destroyed most of the accounting records of the Alcorn Division, a small one-product manufacturing division that uses standard costs and flexible budgets. All variances are written off as additions to (or deductions from) income; none are pro-rated to inventories. You have the task of reconstructing the records for the year. The general manager informs you that the accountant has been experimenting with both absorption costing and variable costing.
The following information is available for the current year:
Required:
Compute the following items (ignore income tax effects).

Question

On December 30, a fire destroyed most of the accounting records of the Alcorn Division, a small one-product manufacturing division that uses standard costs and flexible budgets. All variances are written off as additions to (or deductions from) income; none are pro-rated to inventories. You have the task of reconstructing the records for the year. The general manager informs you that the accountant has been experimenting with both absorption costing and variable costing.
The following information is available for the current year:
  Required:
Compute the following items (ignore income tax effects).

Quizplus · Accepted Answer

The Answer of On December 30, a fire destroyed most of the accounting records of the Alcorn Division, a small one-product manufacturing division that uses standard costs and flexible budgets. All variances are written off as additions to (or deductions from) income; none are pro-rated to inventories. You have the task of reconstructing the records for the year. The general manager informs you that the accountant has been experimenting with both absorption costing and variable costing.
The following information is available for the current year:
  Required:
Compute the following items (ignore income tax effects).

On December 30, a Fire Destroyed Most of the Accounting