Absorption Costing Income Statement For the Month Ended April 30 Sales (2,500 units) Cost of goods sold: Cost of goods manufactured (2,900 units) Inventory, April 30 (400 units) Total cost of goods sold Gross profit Selling and administrative expenses Operating income $75,400 (10,400) $92,500 (65,000) $27,500 (16,050) $11,450 If the fixed manufacturing costs were $18,096 and the fixed selling and administrative expenses were $7,860, prepare an income statement according to the

Absorption Costing Income Statement For the Month Ended April 30 Sales (2,500 units) Cost of goods sold: Cost of goods manufactured (2,900 units) Inventory, April 30 (400 units) Total cost of goods sold Gross profit Selling and administrative expenses Operating income $75,400 (10,400) $92,500 (65,000) $27,500 (16,050) $11,450 If the fixed manufacturing costs were $18,096 and the fixed selling and administrative expenses were $7,860, prepare an income statement according to the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Variable Costing Income Statement On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (14,000 units) $1,134,000 Cost of goods sold: Cost of goods manufactured $871,250 Less ending inventory (3,000 units) 153,750 Cost of goods sold 717,500 Gross profit $416,500 Selling and administrative expenses 79,000 Income from operations $337,500 Question Content Area a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $51,000 and the variable selling and administrative expenses were $36,000. In your computations, round unit costs to two decimal places
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 9,600 flat panel televisions, of which 8,800 were sold. Operating data for the month are summarized as follows: Sales $1,320,000 Manufacturing costs: Direct materials $681,600 Direct labor 201,600 Variable manufacturing cost 172,800 Fixed manufacturing cost 86,400 1,142,400 Selling and administrative expenses: Variable $105,600 Fixed 48,600 154,200 Required: Question Content Area 1. Prepare an income statement based on the absorption costing concept. YoSan Inc.Absorption Costing Income StatementFor the Month Ended July 31 $- Select - Cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - $- Select - Question Content Area 2. Prepare an income statement based on the variable costing concept.…
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 2,000 units and sold 1,700 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1 Sales $646,000 Variable cost of goods sold: Variable cost of goods manufactured $364,000 Inventory, March 31 (54,600) Total variable cost of goods sold (309,400) Manufacturing margin $336,600 Total variable selling and administrative expenses (78,200) Contribution margin $258,400 Fixed costs: Fixed manufacturing costs $168,000 Fixed selling and administrative expenses 51,000 Total fixed costs (219,000) Operating income $39,400 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing…
Variable and Absorption Costing The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: (in millions) $41,748 $(29,082) (8,113) $(37,195) Operating income $4,553 Assume that $10,575 million of cost of goods sold and $5,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Beginning inventory $11,266 11,402 Ending inventory Also, assume that 30% of the beginning and ending inventories were fixed costs. Sales Cost of goods sold Selling, administrative, and other expenses Total expenses a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. Caterpillar Inc. Variable Costing Income Statement (assumed) For the Year Ended December 31 Line Item Description Sales Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Ending inventory Total…
Philadelphia Company has the following information for March: Sales $456,237 Variable cost of goods sold 219,296 Fixed manufacturing costs 77,140 Variable selling and administrative expenses 50,892 Fixed selling and administrating expenses 38,240 Determine the March: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income for Philadelphia Company $fill in the blank 3
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 1,800 units and sold 1,500 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1 Sales $390,000 Variable cost of goods sold: Variable cost of goods manufactured $225,000 Inventory, March 31 (37,500) Total variable cost of goods sold (187,500) Manufacturing margin $202,500 Total variable selling and administrative expenses (46,500) Contribution margin $156,000 Fixed costs: Fixed manufacturing costs $102,600 Fixed selling and administrative expenses 31,500 Total fixed costs (134,100) Operating income $21,900 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing…
Absorption Costing Income Statement On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept: Sales (90,000 units) $1,530,000 Variable cost of goods sold: Variable cost of goods manufactured (110,000 units x $12 per unit) $1,320,000 Less ending inventory (20,000 units x $12 per unit) 240,000 Variable cost of goods sold 1,080,000 Manufacturing margin $450,000 Variable selling and administrative expenses 15,000 Contribution margin $435,000 Fixed costs: Fixed manufacturing costs $49,500 Fixed selling and administrative expenses 28,000 77,500 Income from operations $357,500 a. Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Tudor Manufacturing Co. Income Statement-Absorption Costing For the Month Ended June 30 Sales Cost of goods sold: Cost of goods manufactured Less ending inventory…
Provide correct answer for the question
Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 29,300 hats, of which 27,800 were sold. Operating data for the month are summarized as follows: Sales $177,920 Manufacturing costs: Direct materials $105,480 Direct labor 29,300 Variable manufacturing cost 11,720 Fixed manufacturing cost 11,720 158,220 Selling and administrative expenses: Variable $8,340 Fixed 6,090 14,430 During August, Head Gear Inc. manufactured 26,300 hats and sold 27,800 hats. Operating data for August are summarized as follows: Sales $177,920 Manufacturing costs: Direct materials $94,680 Direct labor 26,300 Variable manufacturing cost 10,520 Fixed manufacturing cost 11,720 143,220 Selling and administrative expenses: Variable $8,340 Fixed 6,090 14,430 Required: 1a. Prepare income…
Compute for the net operating income under variable costing for year 2
Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (6, 100 units) $201, 300 Cost of goods sold: Cost of goods manufactured (7, 100 units) $163,300 Inventory, April 30 (1,000 units) (23,000) Total cost of goods sold (140, 300) Gross profit $61,000 Selling and administrative expenses (36,830) Operating income $24, 170 If the fixed manufacturing costs were $ 44,091 and the fixed selling and administrative expenses were $18, 040, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the Month Ended April 30 $Sales Variable cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - $ - Select - Fixed costs: $Variable cost of goods sold Fixed…
The level of inventory of a manufactured product has increased by 7,848 units during a period. The following data are also available Variable Fixed Unit manufacturing costs of the period $11.00 $3.00 Unit operating expenses of the period 2.00 5.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $23,544 increase Ob. $62,784 decrease Oc. $62,784 increase Od. $23,544 decrease