AJ Manufacturing Company incurred $52,000 of fixed product cost and $41,600 of variable product cost during its first year of operation. Also during its first year, AJ incurred $16,600 of fixed and $13,400 of variable selling and administrative costs. The company sold all of the units it produced for $168,000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). b. Prepare an income statement using the contribution margin approach.
AJ Manufacturing Company incurred $52,000 of fixed product cost and $41,600 of variable product cost during its first year of operation. Also during its first year, AJ incurred $16,600 of fixed and $13,400 of variable selling and administrative costs. The company sold all of the units it produced for $168,000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). b. Prepare an income statement using the contribution margin approach.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:AJ Manufacturing Company incurred $52,000 of fixed product cost and $41,600 of variable product cost during its
first year of operation. Also during its first year, AJ incurred $16,600 of fixed and $13,400 of variable selling and
administrative costs. The company sold all of the units it produced for $168,000.
Required
a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).
b. Prepare an income statement using the contribution margin approach.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).
AJ MANUFACTURING COMPANY
Income Statement
Required A Required B
Prepare an income statement using the contribution margin approach.
AJ MANUFACTURING COMPANY
Income Statement
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