Accounting Question...

[Regs]

Can figure out this one part of the qeustion. "40% in the month following the sale"

I thought it would be as simple as 450,000 * .90 * .60 or 202500 * 60 but that's incorrect.


Link to Question

 

[Dr. Detroit]

40% * $405,000

 

[dbk]

1st month: 10% (cash) + 45% (account)
2nd month: 36% (account)
3rd month: 9% (account)
= 100%

it means 40% of the 90% on accounts

 

[Epic Fail]

wut?

this month = 450,000 * .9 * .5
next month = 450,000 * .9 * .4
next next month = 450,000 * .9 * .1

 

[summit]

202500 sales collected in march = 50%
x sales collected in april = 40%
so its (202500/50)= (x/40)

x= 162000
i maybe very wrong...its been a long night

 

[Ns1]

When in doubt, debit fail

 

[Regs]

ty dbk amd Epic, I knew it was simple. For some reason I was taking the compliment of 40%. Fmr, you missed a step. 🙂


Now you think you guys can solve a variable vs absorption cost income statement for me? Hah. Basically I have to convert a absorption cost statement into a variable cost income statement. Though the damn question won't give me any data on the variable or fixed costs.

This one is much more involved, though if someone can explain to me where to be even begin! My guess is there is a formula involved for figuring out the fixed/varible costs of the units though my book is less than helpful.

Last one I promise!

 

[blinky8225]

Originally posted by: Regs
40%. Fmr, you missed a step. 🙂

No he didn't. He implicitly took 90% of 450,000. Hence, 405,000.

 

[Regs]

Whoops...

all I had to do is minus the fix manufacturing with the total costs of goods sold and got the variable.

Give me a few moments and I can likely crack it....

 

[Regs]

Woot got the 2nd one. Something about anandtech that gets my brain working at 1:30 am. Love you guys.

 

[BoomerD]

Remember...Absorption costing includes both fixed and variable costs. Variable costing (duh) only includes the variable costs of manufacturing.

(we just went through this chapter in Managerial Accounting a few weeks ago)

 

[Regs]

Originally posted by: BoomerD
Remember...Absorption costing includes both fixed and variable costs. Variable costing (duh) only includes the variable costs of manufacturing.

(we just went through this chapter in Managerial Accounting a few weeks ago)

It's easy in wording for me, but then they give you these stupid questions that make you do 2 or 3 steps before actually getting to the real solution that easily overwhelm me. Job cost systems and conversion costs are a real PITA. You likely did that a month ago.

 

[BoomerD]

Originally posted by: Regs

Originally posted by: BoomerD
Remember...Absorption costing includes both fixed and variable costs. Variable costing (duh) only includes the variable costs of manufacturing.

(we just went through this chapter in Managerial Accounting a few weeks ago)

It's easy in wording for me, but then they give you these stupid questions that make you do 2 or 3 steps before actually getting to the real solution that easily overwhelm me. Job cost systems and conversion costs are a real PITA. You likely did that a month ago.

Managerial Accounting is a PITA...period.

We're working on budgeting, cash flows, and "Balanced Scorecard" to finish the semester.
My professor is a taskmistress...she loads us up with homework in the hopes that we'll gain some understanding of the subject, AND makes us outline each chapter before we cover it in class. (it helps, but damn, it's time consuming as hell)