Homework Help is Here – Start Your Trial Now!
Business
Accounting
1. Prepare income statements for Crystal Clear in January and February 2017 under throughput costing.

1. Prepare income statements for Crystal Clear in January and February 2017 under throughput costing.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
9-23 Variable and absorption costing, explaining operating-income differences. Crystal Clear Corporation manufactures and sells 50-inch televi sets and uses standard costing. Actual data relating to January and February 2017 are as follows: Unit data Beginning entry Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs January 0 1,400 1,300 Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit $ 950 $725 $490,000 $120.000 February 100 1275 1375 January $550 175 225 $950 $950 $725 The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 u There are no price-, efficiency-, or spending variances. Any production- volume variance is written off to cost of goods sold in the month in whi occurs. $490,000 $120.000 1. Prepare income statements for Crystal Clear in January and February 2017 under (a) variable costing and (b) absorption costing. 9-24 Throughput costing (continuation of 2-23). The variable manufacturing costs per unit of Cantal Clear Corporation are as follows: February $550 175 225 $950 Required: 1. Prepare income statements for Crystal Clear in January and February 2017 under throughput costing.
Transcribed Image Text:9-23 Variable and absorption costing, explaining operating-income differences. Crystal Clear Corporation manufactures and sells 50-inch televi sets and uses standard costing. Actual data relating to January and February 2017 are as follows: Unit data Beginning entry Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs January 0 1,400 1,300 Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit $ 950 $725 $490,000 $120.000 February 100 1275 1375 January $550 175 225 $950 $950 $725 The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 u There are no price-, efficiency-, or spending variances. Any production- volume variance is written off to cost of goods sold in the month in whi occurs. $490,000 $120.000 1. Prepare income statements for Crystal Clear in January and February 2017 under (a) variable costing and (b) absorption costing. 9-24 Throughput costing (continuation of 2-23). The variable manufacturing costs per unit of Cantal Clear Corporation are as follows: February $550 175 225 $950 Required: 1. Prepare income statements for Crystal Clear in January and February 2017 under throughput costing.
Expert Solution
steps

Step by step

Solved in 6 steps with 8 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS