Over a 3-year period, a corporation expects sales of 300 units. To avoid the problems associated with employee turnover, it decided to produce 100 units each year, even though sales are expected to increase. The best estimate of sales is 80 units in Year 1, 100 units in Year 2, and 120 units in Year 3. Variable production costs are $50 per unit, and fixed costs are $1,000 per year (even if production is zero). Under absorption costing, if all expenses are paid in cash, by how much does income exceed cash flows in Year 3? a. $60
b. $1,200
c. $6,000
d. $0

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. its ending equity is

Bcorporation, a merchandising company, reported the following results for october: sales $ 490,000 cost of goods sold (all variable) $ 169,700 total variable selling expense $ 24,200 total fixed selling expense $ 21,700 total variable administrative expense $ 13,200 total fixed administrative expense $ 33,600 the contribution margin for october is:

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: