Commodity brokers use forward and futures contracts for which of the
following reasons?
A. Th...
Business, 13.07.2020 17:01 Juicebox18
Commodity brokers use forward and futures contracts for which of the
following reasons?
A. The raw, unprocessed nature of commodities means that there is
always a third party to any commodity-purchase contract.
B. The riskiness of commodity production means that many
commodity producers go bankrupt before harvest time.
C. The seasonal nature of many commodities would lead to wide
variations in supply and price without these contracts.
D. Commodities come from many different countries with very
different currency exchange rates.
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Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.
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