As part of her year-end responsibilities, Sharon prepared the company's variable costing income statement as follows. Sales Variable expenses: $418,700 COGS $142,200 Operating expenses 23,700 165,900 Contribution margin 252,800 Fixed expenses: MOH 60,750 Operating expenses 74,000 134,750 Operating income $118,050 She hadn't been able to compare the income to last year's income yet, but she was expecting it to be lower because sales volume was down slightly from the prior year. Still, this year the company managed to produce 8,600 units, which was 1,100 units more than it had originally budgeted. Sharon also included the following detail on her worksheet to support this income statement: variable operating expenses were $3 per unit, and there were no price or efficiency variances within the standard costing system this period. Help Sharon prepare the same period's income statement but under absorption costing, in good form. The company writes off any standard cost variances directly to COGS. (Round inventory cost per unit to 2 decimal places, e.g. 15.25 and final answer to O decimal places, e.g. 5,125.)

As part of her year-end responsibilities, Sharon prepared the company's variable costing income statement as follows. Sales Variable expenses: $418,700 COGS $142,200 Operating expenses 23,700 165,900 Contribution margin 252,800 Fixed expenses: MOH 60,750 Operating expenses 74,000 134,750 Operating income $118,050 She hadn't been able to compare the income to last year's income yet, but she was expecting it to be lower because sales volume was down slightly from the prior year. Still, this year the company managed to produce 8,600 units, which was 1,100 units more than it had originally budgeted. Sharon also included the following detail on her worksheet to support this income statement: variable operating expenses were $3 per unit, and there were no price or efficiency variances within the standard costing system this period. Help Sharon prepare the same period's income statement but under absorption costing, in good form. The company writes off any standard cost variances directly to COGS. (Round inventory cost per unit to 2 decimal places, e.g. 15.25 and final answer to O decimal places, e.g. 5,125.)

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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