Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,600 rackets and sold 5,500. Each racket was sold at a price of $96. Fixed overhead costs are $89,760 for the year, and fixed selling and administrative costs are $65,800 for the year. The company also reports the following per unit variable costs for the year: Direct materials $ 12.18 Direct labor 8.18 Variable overhead 5.24 Variable selling and administrative expenses 2.60 Required: Prepare an income statement under absorption costing.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Aces Incorporated, a manufacturer of
tennis rackets, began operations this year.
The company produced 6,600 rackets and
sold 5,500. Each racket was sold at a price
of $96. Fixed overhead costs are $89,760
for the year, and fixed selling and
administrative costs are $65,800 for the
year. The company also reports the
following per unit variable costs for the
year: Direct materials $ 12.18 Direct labor
8.18 Variable overhead 5.24 Variable selling
and administrative expenses 2.60 Required:
Prepare an income statement under
absorption costing.
Transcribed Image Text:Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,600 rackets and sold 5,500. Each racket was sold at a price of $96. Fixed overhead costs are $89,760 for the year, and fixed selling and administrative costs are $65,800 for the year. The company also reports the following per unit variable costs for the year: Direct materials $ 12.18 Direct labor 8.18 Variable overhead 5.24 Variable selling and administrative expenses 2.60 Required: Prepare an income statement under absorption costing.
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