Dear all I need help in solving one question.Kimi Co. makes and sells high tech googles, Operating results for the first three years of operations for this company (using absorption costing) were as follows:


2012 2013 2014
Sales 700,000 717,500 717,500
Cost of goods sold 492,727 539,136 525,500
Gross margin 207,273 178,364 192,000
Selling & administrative 110,000 111,750 111,750
Operating income $97,273 $66,614 $80,250





Sales and production in each year is shown below:

2012 2013 2014
Production 2200 1950 2050
(production and actual units)
Sales unites 2000 2050 2050

The company’s manufacturing facilities are highly automated. Fixed manufacturing overhead costs are applied to units of product on the basis of each year’s production, thus, a new fixed overhead rate is computed each year. The company uses a last-in, first-out (LIFO) inventory flow assumption.

Variable manufacturing costs
(direct materials, direct labor, variable manufacturing overhead) $110.00 per unit
Fixed manufacturing overhead costs $300,000 per year
Variable selling and admin. expenses $35.00 per unit sold
Fixed selling and admin. expenses $40,000 per year

Required:
1. Prepare a variable costing (contribution format) income statement for each year.
2. a. Compute the fixed overhead rate per unit produced for each year under absorption
costing.
b. Compute the total product (inventroiable) cost per unit for each year under absorption costing.
3. Reconcile the difference in operating income between absorption and variable costing, in each year, using the following formula: FMOH in ending inventory – FMOH in beginning inventory = difference in income. Note that a little rounding error (should be less than $1) is ok.
4. Refer to the absorption costing income statements given above. Thoroughly explain (in words, not numbers) why net operating income was lower in 2013 than it was in 2012 under absorption costing, even though more units were sold in 2013 than in 2012.
5. Refer again to the absorption costing income statements above. Thoroughly explain (in words, not numbers) why profits increased in 2014 when the sales volume stayed the same as in 2013.
6. Absorption costing is required by generally accepted accounting principles for external reporting; however, many companies use variable costing for internal reporting and analysis purposes. Identify and thoroughly discuss two advantages and two disadvantages of using variable costing for internal purposes.

Please solve the question and write solution

Can i book Previous Year expenses in current year?

For the F.Y 2013-14 finalization also done. In Dec'2014 i found that some expenses not booked in Previous year. For that expenses there is no provision was created.



How can i book those expenses in F.Y 2014-15?
What are the Journal entries are required to pass for this?
What is the Tax Treatment for this?

why interim dividend in fund flow comes in debit side of p&l appropriation account where only the items not affecting working capital comes in indirect method?

our company's security raise a bill service bill amount 20225 (18000+2225(12.36%)).now suggests me which amount tds will be deduct ?

Plz help:-

Question:

If we get any Income after deducting TDS on the amount, what will be the journal entries when;

a. Receiving the amount
b. reimbursement of TDS from Govt.

What is stated in IFRS

Let me know that what is the difference between TPT & NEFT/RTGS.


Thank U

Whether IFRS is applicable for CA-Final November 2015 Exam??
Please reply as soon as possible!!

Ramesh and suresh are partners sharing profits in the ratio of 2:1 (ramesh capital is Rs.1,02,000 and Suresh capital is Rs.73,000). They admitted mahesh & agreed to give him 1/5 in share. He brings Rs.14,000 as his share of goodwill . He agreed to contribute capital in profit sharing ratio. How much capital will be brought by incoming partner ?

Dear Sir/mam Karta of huf transfered his property in huf without consideration my query clubbing provision is applicable in the hands of Karta plz suggest how we can save from tax liability of karta