Ireland Corporation Planned to Be in Operation for Three Years

question 180

Essay

Ireland Corporation planned to be in operation for three years.
-During the first year, 2017, it had no sales but incurred $240,000 in variable manufacturing expenses and $80,000 in fixed manufacturing expenses.
-In 2018, it sold half of the finished goods inventory from 2017 for $200,000 but it had no manufacturing costs.
-In 2019, it sold the remainder of the inventory for $240,000, had no manufacturing expenses and went out of business.
-Marketing and administrative expenses were fixed and totaled $40,000 each year.
Required:
a.Prepare an income statement for each year using absorption costing.
b.Prepare an income statement for each year using variable costing.

Understand the sociocultural changes affecting consumer behavior and marketing strategies.

Distinguish between different types of consumer incomes and their relevance to marketing.

Recognize key legislations and their impact on marketing practices.

Understand the complexity of distinguishing between genuine and masked emotional expressions.

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Definitions:

Fixed Displacement

Pertains to pumps or engines where the volume of fluid or gas moved per cycle is constant, unrelated to pressure or flow rate.

Rotational Speed

The number of rotations per unit time, typically measured in revolutions per minute (RPM).

Volume of Oil

The total amount of oil contained within a system or component, critical for lubrication and cooling in machinery and engines.

Open Center Circuit

A hydraulic system configuration where fluid returns to the reservoir through the center of the control valve when it is in the neutral position.