Aces inc, a manufacturer of tennis rackets, began operations this year. The company produced 6,200 rackets and sold 5,100. Each racket was sold at a price of $92. Fixed overhead costs are $81,840, and fixed selling and administrative costs are $65,400. The company also reports the following per unit variable costs for the year Variable product costs Varlable selling and administrative expenses $ 25.20 $ 2.20 Prepare an income statement under varlable costing ACES INC. Variable Costing Income Statement

Aces inc, a manufacturer of tennis rackets, began operations this year. The company produced 6,200 rackets and sold 5,100. Each racket was sold at a price of $92. Fixed overhead costs are $81,840, and fixed selling and administrative costs are $65,400. The company also reports the following per unit variable costs for the year Variable product costs Varlable selling and administrative expenses $ 25.20 $ 2.20 Prepare an income statement under varlable costing ACES INC. Variable Costing Income Statement

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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The following information pertains to the first year of operation for Crystal Cold Coolers Incorporated: Number of units produced Number of units sold 3,100 2,600 $ 355 Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($201,500÷3,100 units) Total variable selling expenses ($14 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Full Absorption Costing Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the y Answer is not complete. Variable Costing Prepare Crystal Cold's full absorption costing income statement for the year. Crystal Cold Coolers Incorporated Full Absorption Costing Income Statement Sales $ 60 $ 50 923,000 $12 $65 $36,400 $ 65,000
Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Income Statement (Absorption Costing) Sales (80,000 units × $45 per unit) $ 3,600,000 Cost of goods sold 2,000,000 Gross profit 1,600,000 Selling and administrative expenses 560,000 Income $ 1,040,000 Additional Information Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit consists of the following. Direct materials $ 4 per unit Direct labor $ 10 per unit Variable overhead $ 4 per unit Fixed overhead ($700,000 / 100,000 units) $ 7 per unit Required:Prepare an income statement for the company under variable costing.
A company has a single product. The monthly data concerning the single product follows: Item Amount Selling Price per unit $200/unit Variable expenses per unit $80/unit Total Fixed Expenses $980,000 Units produced 10,000 units Units sold 10,000 units What is the current Operating Income given the above information?
Ellie Manufacturing Company produces three products: A, B, and C. The income statement for the most recent year is as follows: $200,000 Sales Less: Variable cost Contribution margin Less fixed cost: Manufacturing Selling and administrative Sales 34,000 Operating income $39,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows: Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common expenses $ $20,000 14,000 $ $ A $60,000 Contribution margin ratio Direct fixed expenses of products Required: Prepare income statements segmented by products. Include a column for the entire firm in the statement. Ellie Manufacturing Company Segmented Income Statement For the Most Recent Year A B 127,000 $73,000 $40,000 30% $8,000 $5,000 35% C B $ C Total $100,000 40% $4,000
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In the last reporting period, Global Tech Company recorded 140,000 units sold for the first time in the history of the company. The price per unit was $85.63 and variable costs per unit at $35.07. Compute the contribution margin. Next, compute the fixed costs if the operating income is $3,810,000. OA. $4,909,800; $4,528,800 OB. $7,078,400; $3,268,400 OC. $4,909,800; $5,290,800 OD. $11,988,200; $11,607,200
The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y P24 Selling price per unit Variable cost per unit Contribution margin per unit P20 12 6. P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.
Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 each. At year-end, the company reported the following income statement information using absorption costing. Sales (775 × $1,025) $ 794,375 Cost of goods sold (775 × $500) 387,500 Gross profit 406,875 Selling and administrative expenses 250,000 Income $ 156,875 Additional Information a. Product cost per kayak under absorption costing totals $500, which consists of $400 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $102,500 of fixed overhead per year divided by 1,025 kayaks produced.b. The $250,000 in selling and administrative expenses consists of $105,000 that is variable and $145,000 that is fixed.Prepare an income statement for the current year under variable costing.
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Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Income Statement (Absorption Costing) Sales (80,000 units x $45 per unit) Cost of goods sold Gross profit Selling and administrative expenses Income Additional Information $ 3,600,000 2,000,000 1,600,000 490,000 $ 1,110,000 a. Selling and administrative expenses consist of $350,000 in annual fixed expenses and $1.75 per unit in variable selling and administrative expenses. b. The company's product cost of $25 per unit consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($700,000 / 100,000 units) Required: $ 5 per unit $ 10 per unit $ 3 per unit $ 7 per unit Prepare an income statement for the company under variable costing. TREZ Company
A condensed income statement by product line for Master Energy Co. indicated the following for the Master Energy product line for the past year: Revenues and Costs Dollar Amount Sales $12,300,000 Cost of goods sold 8,250,000 Gross profit 4,250,000 Operating expenses 6,010,000 Loss from operations (1,960,000) It is estimated that 25% of the cost of goods sold represents fixed factory overhead costs and that 15% of the operating expenses are fixed. Because Master Energy is only one of many products, the fixed costs will not be materially affected if the product is discontinued. Prepare a differential analysis dated March 31st to determine whether Master Energy should be continued (Alternative 1) or discontinued (Alternative 2). Should Master Energy be retained? Explain.
Marley Company has the following information for March: Sales $912,000 Variable cost of goods sold 474,000 Fixed manufacturing costs 82,000 Variable selling and administrative expenses 238,100 Fixed selling and administrative expenses 54,700 Determine the following for Marley Company for the month of March: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income $fill in the blank 3