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?

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

What type of budget is stated? a budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year.

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?