Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Line Item Description Amount Amount Sales $2,150,000 Manufacturing costs: Direct materials $960,000 Direct labor 420,000 Variable manufacturing cost 156,000 Fixed manufacturing cost 288,000 1,824,000 Selling and administrative expenses: Variable $204,000 Fixed 96,000 300,000 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 Line Item Description Amount Amount Cost of goods sold: - Question Content Area 2. Prepare an income statement based on the variable costing concept. YoSan Inc.Variable Costing Income StatementFor the Month Ended July 31 Line Item Description Amount Amount Variable cost of goods sold: Fixed costs: Question Content Area 3. Explain the reason for the difference in the amount of operating income reported in and . The operating income reported under fill in the blank costing exceeds the operating income reported under costing, due to manufacturing costs that are deferred to a future month under costing.
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Line Item Description Amount Amount Sales $2,150,000 Manufacturing costs: Direct materials $960,000 Direct labor 420,000 Variable manufacturing cost 156,000 Fixed manufacturing cost 288,000 1,824,000 Selling and administrative expenses: Variable $204,000 Fixed 96,000 300,000 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 Line Item Description Amount Amount Cost of goods sold: - Question Content Area 2. Prepare an income statement based on the variable costing concept. YoSan Inc.Variable Costing Income StatementFor the Month Ended July 31 Line Item Description Amount Amount Variable cost of goods sold: Fixed costs: Question Content Area 3. Explain the reason for the difference in the amount of operating income reported in and . The operating income reported under fill in the blank costing exceeds the operating income reported under costing, due to manufacturing costs that are deferred to a future month under costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
-
Absorption and Variable Costing Income Statements
During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows:
Line Item Description Amount Amount Sales $2,150,000 Manufacturing costs :Direct materials $960,000 Direct labor 420,000 Variable manufacturing cost 156,000 Fixed manufacturing cost 288,000 1,824,000 Selling and administrative expenses: Variable $204,000 Fixed 96,000 300,000 Required:
Question Content Area
YoSan Inc.Absorption Costing Income StatementFor the Month Ended July 311. Prepare an income statement based on the absorption costing concept.
Line Item Description Amount Amount Cost of goods sold: - Question Content Area
YoSan Inc.Variable Costing Income StatementFor the Month Ended July 312. Prepare an income statement based on the variable costing concept.
Line Item Description Amount Amount Variable cost of goods sold: Fixed costs: Question Content Area
3. Explain the reason for the difference in the amount of operating income reported in and .
The operating income reported under fill in the blankcosting exceeds the operating income reported under
costing, due to
manufacturing costs that are deferred to a future month under costing.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education