Dalton Corporation Has Fixed Manufacturing Cost of $12 Per Unit

question 66

Essay

Dalton Corporation has fixed manufacturing cost of $12 per unit. Consider the three independent cases that follow.
Case A: Absorption- and variable costing income each totaled $240,000 in a period when the firm produced 18,000 units.
Case B: Absorption-costing income totaled $320,000 in a period when finished-goods inventory levels rose by 7,000 units.
Case C: Absorption-costing income and variable-costing income respectively totaled $220,000 and $250,000 in a period when the beginning finished-goods inventory was 14,000 units.
Required:
A. In Case A, how many units were sold during the period?
B. In Case B, how much income would Dalton report under variable costing?
C. In Case C, how many units were in the ending finished-goods inventory?

Understand the role and impact of analytics in business decision-making.

Recognize the contributors and benefits of crowdsourcing as a decision aid.

Comprehend the concept and application of evidence-based management in organizational decisions.

Identify key companies that have successfully applied analytics and crowdsourcing in their operations.

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Definitions:

Reporting

The process of organizing and presenting data, often financial, to provide insights into the performance of an entity.

Accounts Payable

Liabilities or amounts owed by a business to its creditors or suppliers for goods and services received.

Subsidiary Ledger

A group of accounts that provide details supporting a general ledger control account.

Supplier

An entity that provides goods or services to another entity, typically within a supply chain.