Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,850 rackets and sold 5,830. Each racket was sold at a price of $90. Fixed overhead costs are $102, 050 per year, and fixed selling and administrative costs are $69,000 per year. The company also reports the following per unit variable costs for the year. Direct materials $ 12 Direct labor 8 Variable overhead 5 Variable selling and administrative expenses 2 Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Cost of goods sold Variable cost of goods sold Variable selling and administrative expenses Fixed overhead Gross profit Less: Fixed expenses Variable selling and administrative expenses Fixed selling and administrative expenses Variable cost of goods sold Income x X $ 69,960 X 46,640 X 75,790 X X$ 11,660 X 69,000 $ 524,700 192,390 303,160 80,660 $ 222,500 X

Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,850 rackets and sold 5,830. Each racket was sold at a price of $90. Fixed overhead costs are $102, 050 per year, and fixed selling and administrative costs are $69,000 per year. The company also reports the following per unit variable costs for the year. Direct materials $ 12 Direct labor 8 Variable overhead 5 Variable selling and administrative expenses 2 Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Cost of goods sold Variable cost of goods sold Variable selling and administrative expenses Fixed overhead Gross profit Less: Fixed expenses Variable selling and administrative expenses Fixed selling and administrative expenses Variable cost of goods sold Income x X $ 69,960 X 46,640 X 75,790 X X$ 11,660 X 69,000 $ 524,700 192,390 303,160 80,660 $ 222,500 X

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Description: Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced7,850 rackets and sold 5,830. Each racket was sold at a price of $90. Fixed overhead costs are $102, 050per year, and fixed selling and administrati

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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Required information [The following information applies to the questions displayed below.] Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,850 rackets and sold 5,330. Each racket was sold at a price of $90. Fixed overhead costs are $89,050 per year, and fixed selling and administrative costs are $67,000 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Prepare an income statement under variable costing. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Vanable selling and administrative expenses Contribution margin Fixed overhead Fixed selling and administrative expenses 333 X x X > $ 89,050✔ 67,000 $479,700 335,790 $12 8 5 2 156,050 Income $ 179,740 "Red text indicates no response was expected in a cell or a formula-based calculation is…
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Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,450 rackets and sold 5,630. Each racket was sold at a price of $90. Fixed overhead costs are $96,850 per year, and fixed selling and administrative costs are $68,200 per year. The company also reports the following per unit variable costs for the year. Direct materials $ 12 Direct labor 8 Variable overhead 5 Variable selling and administrative expenses 2
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