H9998.The Manaka Company had the data for its first three years of operation regarding its only product: Year 1 Year 2 Year 3 Total 50,000 30,000 120,000 40,000 40,000 120,000 $30 $30 $5 $5 $600,000 $600,000 $600,000 $2 $2 $2 $300,000 $300,000 $300,000 $100,000 $220,000 ? Units Produced Units Sold 40,000 40,000 $30 Unit Selling Price Unit Variable Manufacturing costs Fixed Manufacturing Overhead costs Unit Variable selling and admin costs Total Selling and admin costs Absorption Costing Operating Income Required: c.Prepare an income statement for Year 2, using the contribution format. $5 The Manaka Company had the data for its first three years of operation regarding its only productYear 1Year 2 Year 3 TotalUnits ProducedUnits Sold40,00040,000$30Unit Selling PriceUnit Variable Manufacturing costsFixed Manufacturing Overhead costsUnit Variable selling and admin costsTotal Selling and admin costsAbsorption Costing Operating IncomeRequired:c.Prepare an income statement for Year 2, using the contribution format.$550,000 30,000 120,00040,000 40,000120,000$30$5$5$600,000 $600,000 $600,000$2$2$300,000 $300,000 $300,000$100,000 $220,000 252$30

The income statement is prepared to know the profit or loss earned during the period. The income…

Answered: 998. The Manaka Company had the data…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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H9998. The Manaka Company had the data for its first three years of operation regarding its only product: Year 1 Year 2 Year 3 Total 50,000 30,000 120,000 40,000 40,000 120,000 $30 $30 $5 $5 $600,000 $600,000 $600,000 $2 $2 $2 $300,000 $300,000 $300,000 $100,000 $220,000 ? Units Produced Units Sold 40,000 40,000 $30 Unit Selling Price Unit Variable Manufacturing costs Fixed Manufacturing Overhead costs Unit Variable selling and admin costs Total Selling and admin costs Absorption Costing Operating Income Required: c.Prepare an income statement for Year 2, using the contribution format. $5

The Manaka Company had the data for its first three years of operation regarding its only product
Year 1
Year 2 Year 3 Total
Units Produced
Units Sold
40,000
40,000
$30
Unit Selling Price
Unit Variable Manufacturing costs
Fixed Manufacturing Overhead costs
Unit Variable selling and admin costs
Total Selling and admin costs
Absorption Costing Operating Income
Required:
c.Prepare an income statement for Year 2, using the contribution format.
$5
50,000 30,000 120,000
40,000 40,000
120,000
$30
$5
$5
$600,000 $600,000 $600,000
$2
$2
$300,000 $300,000 $300,000
$100,000 $220,000 2
52
$30

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