Dog Absorption Costing Income StatementOn 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 (420,000 units)Variable cost of goods sold:Variable cost of goods manufactured (500,000 units x $14 per unit)Less ending inventory (80,000 units x $14 per unit)Variable cost of goods soldManufacturing marginVariable selling and administrative expensesContribution marginFixed costs:Fixed manufacturing costsFixed selling and administrative expensesIncome from operationsCost of goods sold:Income from operations$7,000,0001,120,000$160,00075,000Variable costing income from operationsAbsorption costing income from operationsDifference$7,450,000a. 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 CostingFor the Month Ended June 305,880,000$1,570,00080,000$1,490,000235,000$1,255,000b. Reconcile the variable costing income from operations of $1,255,000 with the absorption costing income from operations determined in (a).Reconciliation of Variable and Absorption CostingIncomePreciou

The income statement is prepared using various methods as variable costing and 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 (420,000 units) Variable cost of goods sold: Variable cost of goods manufactured (500,000 units x 514 per unit) Less ending inventory (80,000 units x $14 per unit) Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and admini $7,000,000 1,120,000 $160,000 75.000 $7,450,000 5,680,000 $1,570,000 80,000 $1,490,000 235.000

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 (420,000 units) Variable cost of goods sold: Variable cost of goods manufactured (500,000 units x 514 per unit) Less ending inventory (80,000 units x $14 per unit) Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and admini $7,000,000 1,120,000 $160,000 75.000 $7,450,000 5,680,000 $1,570,000 80,000 $1,490,000 235.000

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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