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 $26 Direct Labor Cost per Unit $11 Variable Manufacturing Overhead Cost per Unit $3 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 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 $26 Direct Labor Cost per Unit $11 Variable Manufacturing Overhead Cost per Unit $3 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. -Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. -Prepare a reconciliation between the two statements.

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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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	$26
Direct Labor Cost per Unit	$11
Variable Manufacturing Overhead Cost per Unit	$3
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 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	$26
Direct Labor Cost per Unit	$11
Variable Manufacturing Overhead Cost per Unit	$3
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.

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

-Prepare a reconciliation between the two statements.

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