eBookPrint ItemAppliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones.Beginning Inventory0Units Produced24,000Units Sold19,200Selling Price per Unit$146Variable Sales and Administration Expenses$5Fixed Sales and Administration Expenses$931,200Direct Material Cost per Unit$25Direct Labor Cost per Unit$11Variable Manufacturing Overhead Cost per Unit$4Fixed Manufacturing Overhead Cost per Month$940,800Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.Appliance AppsIncome Statement: AbsorptionSales$ 2,803,200Cost of Goods Sold:Beginning Inventory1,900,800 XCost of Goods Manufactured380,160 | ХCost of Goods Available for Sale1,520,640 XEnding Inventory1,282,560Total Cost of Goods SoldGross ProfitSales and Administrative Expenses:VariableFixedTotal Fixed Sales and Administrative ExpensesNet Operating Income Beginning InventoryCost of Goods Manufactured$Cost of Goods Available for SaleEnding InventoryTotal Cost of Goods SoldGross Contribution MarginSales and Administrative Expenses:VariableContribution MarginFixed Sales and Administrative ExpensesFixed ManufacturingTotal Fixed Sales and Administrative ExpensesNet Operating IncomeFeedbackPrepare a reconciliation between the two statements.ReconciliationNet Income under Variable CostingAdd: Fixed Manufacturing Overhead DeferredNet Income under Absorption

The income statement is prepared to find the net income or loss incurred during the period. The…

Answered: Appliance Apps Income Statement:…

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	24,000
Units Sold	19,200
Selling Price per Unit	$146
Variable Sales and Administration Expenses	$5
Fixed Sales and Administration Expenses	$931,200
Direct Material Cost per Unit	$25
Direct Labor Cost per Unit	$11
Variable Manufacturing Overhead Cost per Unit	$4
Fixed Manufacturing Overhead Cost per Month	$940,800

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

Beginning Inventory
Cost of Goods Manufactured
$
Cost of Goods Available for Sale
Ending Inventory
Total Cost of Goods Sold
Gross Contribution Margin
Sales and Administrative Expenses:
Variable
Contribution Margin
Fixed Sales and Administrative Expenses
Fixed Manufacturing
Total Fixed Sales and Administrative Expenses
Net Operating Income
Feedback
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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