Sims company, a manufacturer of tablet computers, began operations on january 1, 2017. its cost and sales information for this year follows.
manufacturing costs:
direct materials $ 35 per unit
direct labor $ 55 per unit
overhead costs for the year:
variable overhead $ 3,150,000
fixed overhead $ 7,350,000
selling and administrative costs for the year:
variable $ 800,000
fixed $ 4,500,000
production and sales for the year:
units produced 105,000 units
units sold 75,000 units
sales price per unit $ 350 per unit
1. prepare an income statement for the year using variable costing.
2. prepare an income statement for the year using absorption costing.
3. under what circumstance(s) is reported income identical under both absorption costing and variable costing?

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.

Record the journal entry for the provision for uncollectible accounts under each of the following independent assumptions: a. the allowance for doubtful accounts before adjustment has a credit balance of $500. b. the allowance for doubtful accounts before adjustment has a debit balance of $250. c. assume that octoberʼs credit sales were $70,000. uncollectible accounts expense is estimated at 2% of sales. smith, gaylord n.. excel applications for accounting principles (p. 51). cengage textbook. kindle edition.