Ewing Company Planned to Be in Operation for Three Years

question 55

Essay

Ewing Company planned to be in operation for three years.During the first year, it had no sales but incurred $120,000 in variable manufacturing expenses and $40,000 in fixed manufacturing expenses.In the next year, it sold half of the finished goods inventory from the previous year for $100,000 but it had no manufacturing costs.In the third year, it sold the remainder of the inventory for $120,000, had no manufacturing expenses and went out of business.Marketing and administrative expenses were fixed and totalled $20,000 each year.Required:
a.Prepare an income statement for each year using absorption costing in the gross margin format.
b.Prepare an income statement for each year using variable costing contribution margin format.

Knowledge of procedural memory and its distinction from other memory types.

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Definitions:

Greenbacks

A term historically used to refer to paper currency issued by the United States during the Civil War, recognized by their green coloring.

Gold Standard

A monetary system in which the value of a country's currency is directly linked to gold, ensuring stability and trust in the currency.

Time Deposits

A financial product provided by banks that offers a higher interest rate in exchange for keeping a specified amount of money untouched for a predetermined period.

Reserve Requirement

The minimum percentage of customer deposits and notes that a bank must hold as reserves rather than lending out, as mandated by the central bank.