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 Units Produced 26,000 Units Sold 20,800 Selling Price per Unit $145 Variable Sales and Administration Expenses $4 Fixed Sales and Administration Expenses $1,008,800 Direct Material Cost per Unit $26 Direct Labor Cost per Unit $10 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $1,016,600 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 Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable Fixed 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 Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Units Produced
26,000
Units Sold
20,800
Selling Price per Unit
$145
Variable Sales and Administration Expenses
$4
Fixed Sales and Administration Expenses
$1,008,800
Direct Material Cost per Unit
$26
Direct Labor Cost per Unit
$10
Variable Manufacturing Overhead Cost per Unit
$2
Fixed Manufacturing Overhead Cost per Month $1,016,600
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
Cost of Goods Sold:
Total Cost of Goods Sold
Sales and Administrative Expenses:
Variable
Fixed
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
Cost of Goods Sold:
$
Total Cost of Goods Sold
Sales and Administrative Expenses:
Variable
띠
Transcribed Image Text: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 Units Produced 26,000 Units Sold 20,800 Selling Price per Unit $145 Variable Sales and Administration Expenses $4 Fixed Sales and Administration Expenses $1,008,800 Direct Material Cost per Unit $26 Direct Labor Cost per Unit $10 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $1,016,600 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 Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable Fixed 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 Cost of Goods Sold: $ Total Cost of Goods Sold Sales and Administrative Expenses: Variable 띠
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