32 Degrees, Inc APrepare 32 Degree's December 31 Income Statement for the Current

question 96

Essay

32 Degrees, Inc., a manufacturer of frozen food, began operations on July 1 of the current year.During this time, the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit.Cost information for this period is shown in the following table:
$\begin{array}{ll}\text { Production costs } & \\\text { Direct materials } & \$ 13.00 \text { per unit } \\\text { Direct labor } & \$ 6.00 \text { per unit } \\\text { Variable overhead } & \$ 2,100,000 \text { in total } \\\text { Fixed overhead } & \$ 3,220,000 \text { in total } \\\text { Nonproduction costs } & \\\text { Variable selling and administrative } & \$ 91,000 \text { in total } \\\text { Fixed selling and administrative } & \$ 458,000 \text { in total }\end{array}$ a.Prepare 32 Degree's December 31 income statement for the current year under absorption costing.
b.Prepare 32 Degree's December 31 income statement for the current year under variable costing.

Understand the concept of open and closed systems in organizations and their interaction with the environment.

Acknowledge the importance of continuous improvement and tactical approaches like network models and simulation in enhancing organizational performance.

Recognize the significance of contingency theory and its application in managerial practices.

Understand the fundamental aspects and benefits of investing in mutual funds.

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Definitions:

Corporal Punishment

A form of physical discipline that involves the deliberate infliction of pain as retribution for an offense.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, involving skepticism, logic, and reasoning.

Motivation Strategies

Techniques or methods used to inspire individuals to initiate or persist in tasks towards achieving goals.

Learning Style

The preferred method or approach an individual uses to learn and process information, such as visual, auditory, kinesthetic, etc.