Homework Help is Here – Start Your Trial Now!
Business
Accounting
4. Prepare an income statement for the company for 2019 under absorption costing. 5. Prepare an income statement for the company for 2019 under variable costing. 6. Prepare a schedule to convert variable costing income to absorption costing income for each of the years 2018 and 2019.

4. Prepare an income statement for the company for 2019 under absorption costing. 5. Prepare an income statement for the company for 2019 under variable costing. 6. Prepare a schedule to convert variable costing income to absorption costing income for each of the years 2018 and 2019.

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

answer 4,5 6 

 

Berk Company began operations on January 5, 2018. Cost and sales information for its first two calendar years of operations are summarized below. Manufacturing costs Direct materials.. Direct labor..... Factory overhead costs Variable overhead... Fixed overhead (per year)... Nonmanufacturing costs Variable selling and administrative...... Fixed selling and administrative... $80 per unit $120 per unit $30 per unit $14,000,000 $10 per unit $ 8,000,000 Production and sales data Units produced, 2018. Units sold, 2018...... Units in ending inventory, 2018...... Units produced, 2019. Units sold, 2019..... Units in ending inventory, 2019... Sales price per unit... 200,000 units 140,000 units 60,000 units 80,000 units 140,000 units 0 units $600 per unit Required 1. Prepare an income statement for the company for 2018 under absorption costing. 2. Prepare an income statement for the company for 2018 under variable costing. 3. Explain the source (s) of the difference in reported income for 2018 under the two costing methods. 4. Prepare an income statement for the company for 2019 under absorption costing. 5. Prepare an income statement for the company for 2019 under variable costing. 6. Prepare a schedule to convert variable costing income to absorption costing income for each of the years 2018 and 2019.
Transcribed Image Text:Berk Company began operations on January 5, 2018. Cost and sales information for its first two calendar years of operations are summarized below. Manufacturing costs Direct materials.. Direct labor..... Factory overhead costs Variable overhead... Fixed overhead (per year)... Nonmanufacturing costs Variable selling and administrative...... Fixed selling and administrative... $80 per unit $120 per unit $30 per unit $14,000,000 $10 per unit $ 8,000,000 Production and sales data Units produced, 2018. Units sold, 2018...... Units in ending inventory, 2018...... Units produced, 2019. Units sold, 2019..... Units in ending inventory, 2019... Sales price per unit... 200,000 units 140,000 units 60,000 units 80,000 units 140,000 units 0 units $600 per unit Required 1. Prepare an income statement for the company for 2018 under absorption costing. 2. Prepare an income statement for the company for 2018 under variable costing. 3. Explain the source (s) of the difference in reported income for 2018 under the two costing methods. 4. Prepare an income statement for the company for 2019 under absorption costing. 5. Prepare an income statement for the company for 2019 under variable costing. 6. Prepare a schedule to convert variable costing income to absorption costing income for each of the years 2018 and 2019.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

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.
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