A Company Reported Net Sales of $850,000, Net Income of $200,000

question 126

Short Answer

A company reported net sales of $850,000, net income of $200,000 and average total assets of
$575,000. Calculate its return on total assets.

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Definitions:

Machine-Hours

A measure of the amount of time machines are run, often used as a base for allocating factory overhead.

Total Job Cost

The cumulative cost of materials, labor, and overhead for a specific job or project.

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, making it possible to track the cost of specific jobs.

Machine-Hours

A measure of production time, used as a basis for allocating manufacturing overhead costs based on the number of hours machines are operated.