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 $970,000 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $11 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $977,500 Question Content Area Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. blankAppliance AppsIncome Statement: Absorption blank $Sales Cost of Goods Sold: $Beginning Inventory Cost of Goods Manufactured $Cost of Goods Available for Sale Ending Inventory Total Cost of Goods Sold fill in the blank 07321b055fbf02d_11 $Gross Profit Sales and Administrative Expenses: Variable $fill in the blank 07321b055fbf02d_14 Fixed fill in the blank 07321b055fbf02d_15 Total Fixed Sales and Administrative Expenses $Net Operating Income Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. blankAppliance AppsIncome Statement: Variable blank $Sales Cost of Goods Sold: $Beginning Inventory Cost of Goods Manufactured $Cost of Goods Available for Sale Ending Inventory Total Cost of Goods Sold fill in the blank f1f5f4029ffd00f_11 $Gross Contribution Margin Sales and Administrative Expenses: Variable fill in the blank f1f5f4029ffd00f_14 $Contribution Margin $Fixed Sales and Administrative Expenses Fixed Manufacturing Total Fixed Sales and Administrative Expenses $Net Operating Income Prepare a reconciliation between the two statements. Reconciliation $Net Income under Variable Costing Add: Fixed Manufacturing Overhead Deferred $Net Income under Absorption

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 $970,000 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $11 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $977,500 Question Content Area Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. blankAppliance AppsIncome Statement: Absorption blank $Sales Cost of Goods Sold: $Beginning Inventory Cost of Goods Manufactured $Cost of Goods Available for Sale Ending Inventory Total Cost of Goods Sold fill in the blank 07321b055fbf02d_11 $Gross Profit Sales and Administrative Expenses: Variable $fill in the blank 07321b055fbf02d_14 Fixed fill in the blank 07321b055fbf02d_15 Total Fixed Sales and Administrative Expenses $Net Operating Income Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. blankAppliance AppsIncome Statement: Variable blank $Sales Cost of Goods Sold: $Beginning Inventory Cost of Goods Manufactured $Cost of Goods Available for Sale Ending Inventory Total Cost of Goods Sold fill in the blank f1f5f4029ffd00f_11 $Gross Contribution Margin Sales and Administrative Expenses: Variable fill in the blank f1f5f4029ffd00f_14 $Contribution Margin $Fixed Sales and Administrative Expenses Fixed Manufacturing Total Fixed Sales and Administrative Expenses $Net Operating Income Prepare a reconciliation between the two statements. Reconciliation $Net Income under Variable Costing Add: Fixed Manufacturing Overhead Deferred $Net Income under Absorption

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 Content Area

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

blankAppliance AppsIncome Statement: Absorption

	blank	$Sales
Cost of Goods Sold:
	$Beginning Inventory
	Cost of Goods Manufactured
	$Cost of Goods Available for Sale
	Ending Inventory
Total Cost of Goods Sold		fill in the blank 07321b055fbf02d_11
		$Gross Profit
Sales and Administrative Expenses:
Variable	$fill in the blank 07321b055fbf02d_14
Fixed	fill in the blank 07321b055fbf02d_15
		Total Fixed Sales and Administrative Expenses
		$Net Operating Income

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

blankAppliance AppsIncome Statement: Variable

	blank	$Sales
Cost of Goods Sold:
	$Beginning Inventory
	Cost of Goods Manufactured
	$Cost of Goods Available for Sale
	Ending Inventory
Total Cost of Goods Sold		fill in the blank f1f5f4029ffd00f_11
		$Gross Contribution Margin
Sales and Administrative Expenses:
Variable		fill in the blank f1f5f4029ffd00f_14
		$Contribution Margin
	$Fixed Sales and Administrative Expenses
	Fixed Manufacturing
		Total Fixed Sales and Administrative Expenses
		$Net Operating Income

Prepare a reconciliation between the two statements.

Reconciliation

	$Net Income under Variable Costing
	Add: Fixed Manufacturing Overhead Deferred
	$Net Income under Absorption

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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	$970,000
Direct Material Cost per Unit	$25
Direct Labor Cost per Unit	$11
Variable Manufacturing Overhead Cost per Unit	$2
Fixed Manufacturing Overhead Cost per Month	$977,500