Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 Units Produced 25,000 Units Sold 20,000 Selling Price per Unit $146 Variable Sales and Administration Expenses $4 Fixed Sales and Administration Expenses $975,000 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $10 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $977,500 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Absorption Sales $fill in the blank 86ad0b00b06b05e_2 Cost of Goods Sold: Beginning Inventory $fill in the blank 86ad0b00b06b05e_4 Cost of Goods Manufactured fill in the blank 86ad0b00b06b05e_6 Cost of Goods Available for Sale $fill in the blank 86ad0b00b06b05e_8 Ending Inventory fill in the blank 86ad0b00b06b05e_10 Total Cost of Goods Sold fill in the blank 86ad0b00b06b05e_11 Gross Profit $fill in the blank 86ad0b00b06b05e_13 Sales and Administrative Expenses: Variable $fill in the blank 86ad0b00b06b05e_14 Fixed fill in the blank 86ad0b00b06b05e_15 Total Fixed Sales and Administrative Expenses fill in the blank 86ad0b00b06b05e_17 Net Operating Income $fill in the blank 86ad0b00b06b05e_19 Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Variable Sales $fill in the blank b3bc4bf9805f03b_2 Cost of Goods Sold: Beginning Inventory $fill in the blank b3bc4bf9805f03b_4 Cost of Goods Manufactured fill in the blank b3bc4bf9805f03b_6 Cost of Goods Available for Sale $fill in the blank b3bc4bf9805f03b_8 Ending Inventory fill in the blank b3bc4bf9805f03b_10 Total Cost of Goods Sold fill in the blank b3bc4bf9805f03b_11 Gross Contribution Margin $fill in the blank b3bc4bf9805f03b_13 Sales and Administrative Expenses: Variable fill in the blank b3bc4bf9805f03b_14 Contribution Margin $fill in the blank b3bc4bf9805f03b_16 Fixed Sales and Administrative Expenses $fill in the blank b3bc4bf9805f03b_18 Fixed Manufacturing fill in the blank b3bc4bf9805f03b_20 Total Fixed Sales and Administrative Expenses fill in the blank b3bc4bf9805f03b_22 Net Operating Income $fill in the blank b3bc4bf9805f03b_24 Prepare a reconciliation between the two statements. Reconciliation Net Income under Variable Costing $fill in the blank 5b9d6003afdf04a_2 Add: Fixed Manufacturing Overhead Deferred fill in the blank 5b9d6003afdf04a_4 Net Income under Absorption $fill in the blank 5b9d6003afdf04a_6

Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 Units Produced 25,000 Units Sold 20,000 Selling Price per Unit $146 Variable Sales and Administration Expenses $4 Fixed Sales and Administration Expenses $975,000 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $10 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $977,500 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Absorption Sales $fill in the blank 86ad0b00b06b05e_2 Cost of Goods Sold: Beginning Inventory $fill in the blank 86ad0b00b06b05e_4 Cost of Goods Manufactured fill in the blank 86ad0b00b06b05e_6 Cost of Goods Available for Sale $fill in the blank 86ad0b00b06b05e_8 Ending Inventory fill in the blank 86ad0b00b06b05e_10 Total Cost of Goods Sold fill in the blank 86ad0b00b06b05e_11 Gross Profit $fill in the blank 86ad0b00b06b05e_13 Sales and Administrative Expenses: Variable $fill in the blank 86ad0b00b06b05e_14 Fixed fill in the blank 86ad0b00b06b05e_15 Total Fixed Sales and Administrative Expenses fill in the blank 86ad0b00b06b05e_17 Net Operating Income $fill in the blank 86ad0b00b06b05e_19 Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Variable Sales $fill in the blank b3bc4bf9805f03b_2 Cost of Goods Sold: Beginning Inventory $fill in the blank b3bc4bf9805f03b_4 Cost of Goods Manufactured fill in the blank b3bc4bf9805f03b_6 Cost of Goods Available for Sale $fill in the blank b3bc4bf9805f03b_8 Ending Inventory fill in the blank b3bc4bf9805f03b_10 Total Cost of Goods Sold fill in the blank b3bc4bf9805f03b_11 Gross Contribution Margin $fill in the blank b3bc4bf9805f03b_13 Sales and Administrative Expenses: Variable fill in the blank b3bc4bf9805f03b_14 Contribution Margin $fill in the blank b3bc4bf9805f03b_16 Fixed Sales and Administrative Expenses $fill in the blank b3bc4bf9805f03b_18 Fixed Manufacturing fill in the blank b3bc4bf9805f03b_20 Total Fixed Sales and Administrative Expenses fill in the blank b3bc4bf9805f03b_22 Net Operating Income $fill in the blank b3bc4bf9805f03b_24 Prepare a reconciliation between the two statements. Reconciliation Net Income under Variable Costing $fill in the blank 5b9d6003afdf04a_2 Add: Fixed Manufacturing Overhead Deferred fill in the blank 5b9d6003afdf04a_4 Net Income under Absorption $fill in the blank 5b9d6003afdf04a_6

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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Question

Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones.

Beginning Inventory	0
Units Produced	25,000
Units Sold	20,000
Selling Price per Unit	$146
Variable Sales and Administration Expenses	$4
Fixed Sales and Administration Expenses	$975,000
Direct Material Cost per Unit	$25
Direct Labor Cost per Unit	$10
Variable Manufacturing Overhead Cost per Unit	$2
Fixed Manufacturing Overhead Cost per Month	$977,500

Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.


Appliance Apps
Income Statement: Absorption
Sales		$fill in the blank 86ad0b00b06b05e_2
Cost of Goods Sold:
Beginning Inventory	$fill in the blank 86ad0b00b06b05e_4
Cost of Goods Manufactured	fill in the blank 86ad0b00b06b05e_6
Cost of Goods Available for Sale	$fill in the blank 86ad0b00b06b05e_8
Ending Inventory	fill in the blank 86ad0b00b06b05e_10
Total Cost of Goods Sold		fill in the blank 86ad0b00b06b05e_11
Gross Profit		$fill in the blank 86ad0b00b06b05e_13
Sales and Administrative Expenses:
Variable	$fill in the blank 86ad0b00b06b05e_14
Fixed	fill in the blank 86ad0b00b06b05e_15
Total Fixed Sales and Administrative Expenses		fill in the blank 86ad0b00b06b05e_17
Net Operating Income		$fill in the blank 86ad0b00b06b05e_19

Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank.


Appliance Apps
Income Statement: Variable
Sales		$fill in the blank b3bc4bf9805f03b_2
Cost of Goods Sold:
Beginning Inventory	$fill in the blank b3bc4bf9805f03b_4
Cost of Goods Manufactured	fill in the blank b3bc4bf9805f03b_6
Cost of Goods Available for Sale	$fill in the blank b3bc4bf9805f03b_8
Ending Inventory	fill in the blank b3bc4bf9805f03b_10
Total Cost of Goods Sold		fill in the blank b3bc4bf9805f03b_11
Gross Contribution Margin		$fill in the blank b3bc4bf9805f03b_13
Sales and Administrative Expenses:
Variable		fill in the blank b3bc4bf9805f03b_14
Contribution Margin		$fill in the blank b3bc4bf9805f03b_16
Fixed Sales and Administrative Expenses	$fill in the blank b3bc4bf9805f03b_18
Fixed Manufacturing	fill in the blank b3bc4bf9805f03b_20
Total Fixed Sales and Administrative Expenses		fill in the blank b3bc4bf9805f03b_22
Net Operating Income		$fill in the blank b3bc4bf9805f03b_24

Prepare a reconciliation between the two statements.



Reconciliation
Net Income under Variable Costing	$fill in the blank 5b9d6003afdf04a_2
Add: Fixed Manufacturing Overhead Deferred	fill in the blank 5b9d6003afdf04a_4
Net Income under Absorption	$fill in the blank 5b9d6003afdf04a_6

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