Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones.Beginning Inventory0Units Produced25,000Units Sold20,000Selling Price per Unit$145Variable Sales and Administration Expenses$4Fixed Sales and Administration Expenses$970,000Direct Material Cost per Unit$26Direct Labor Cost per Unit$11Variable Manufacturing Overhead Cost per Unit$4Fixed Manufacturing Overhead Cost per Month$977,500Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Appliance AppsIncome Statement: AbsorptionSales $fill in the blank 6801b2009034026_2Cost of Goods Sold: Beginning Inventory $fill in the blank 6801b2009034026_4 Cost of Goods Manufactured fill in the blank 6801b2009034026_6 Cost of Goods Available for Sale $fill in the blank 6801b2009034026_8 Ending Inventory fill in the blank 6801b2009034026_10 Total Cost of Goods Sold fill in the blank 6801b2009034026_11Gross Profit $fill in the blank 6801b2009034026_13Sales and Administrative Expenses: Variable$fill in the blank 6801b2009034026_14 Fixedfill in the blank 6801b2009034026_15 Total Fixed Sales and Administrative Expenses fill in the blank 6801b2009034026_17Net Operating Income $fill in the blank 6801b2009034026_19 Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. Appliance AppsIncome Statement: VariableSales $fill in the blank 87f58500606206d_2Cost of Goods Sold: Beginning Inventory $fill in the blank 87f58500606206d_4 Cost of Goods Manufactured fill in the blank 87f58500606206d_6 Cost of Goods Available for Sale $fill in the blank 87f58500606206d_8 Ending Inventory fill in the blank 87f58500606206d_10 Total Cost of Goods Sold fill in the blank 87f58500606206d_11Gross Contribution Margin $fill in the blank 87f58500606206d_13Sales and Administrative Expenses: Variable fill in the blank 87f58500606206d_14Contribution Margin $fill in the blank 87f58500606206d_16Fixed Sales and Administrative Expenses $fill in the blank 87f58500606206d_18 Fixed Manufacturing fill in the blank 87f58500606206d_20 Total Fixed Sales and Administrative Expenses fill in the blank 87f58500606206d_22Net Operating Income $fill in the blank 87f58500606206d_24 Prepare a reconciliation between the two statements. ReconciliationNet Income under Variable Costing $fill in the blank 06b33901a024041_2Add: Fixed Manufacturing Overhead Deferred fill in the blank 06b33901a024041_4Net Income under Absorption $fill in the blank 06b33901a024041_6

The units are produced in the manufacturing industry by incurring a cost of goods sold. It…

Answered: as the following costs associated with…

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

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	$145
Variable Sales and Administration Expenses	$4
Fixed Sales and Administration Expenses	$970,000
Direct Material Cost per Unit	$26
Direct Labor Cost per Unit	$11
Variable Manufacturing Overhead Cost per Unit	$4
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
Income Statement: Absorption
Sales		$fill in the blank 6801b2009034026_2
Cost of Goods Sold:
Beginning Inventory	$fill in the blank 6801b2009034026_4
Cost of Goods Manufactured	fill in the blank 6801b2009034026_6
Cost of Goods Available for Sale	$fill in the blank 6801b2009034026_8
Ending Inventory	fill in the blank 6801b2009034026_10
Total Cost of Goods Sold		fill in the blank 6801b2009034026_11
Gross Profit		$fill in the blank 6801b2009034026_13
Sales and Administrative Expenses:
Variable	$fill in the blank 6801b2009034026_14
Fixed	fill in the blank 6801b2009034026_15
Total Fixed Sales and Administrative Expenses		fill in the blank 6801b2009034026_17
Net Operating Income		$fill in the blank 6801b2009034026_19

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
Sales		$fill in the blank 87f58500606206d_2
Cost of Goods Sold:
Beginning Inventory	$fill in the blank 87f58500606206d_4
Cost of Goods Manufactured	fill in the blank 87f58500606206d_6
Cost of Goods Available for Sale	$fill in the blank 87f58500606206d_8
Ending Inventory	fill in the blank 87f58500606206d_10
Total Cost of Goods Sold		fill in the blank 87f58500606206d_11
Gross Contribution Margin		$fill in the blank 87f58500606206d_13
Sales and Administrative Expenses:
Variable		fill in the blank 87f58500606206d_14
Contribution Margin		$fill in the blank 87f58500606206d_16
Fixed Sales and Administrative Expenses	$fill in the blank 87f58500606206d_18
Fixed Manufacturing	fill in the blank 87f58500606206d_20
Total Fixed Sales and Administrative Expenses		fill in the blank 87f58500606206d_22
Net Operating Income		$fill in the blank 87f58500606206d_24

Prepare a reconciliation between the two statements.



Reconciliation
Net Income under Variable Costing	$fill in the blank 06b33901a024041_2
Add: Fixed Manufacturing Overhead Deferred	fill in the blank 06b33901a024041_4
Net Income under Absorption	$fill in the blank 06b33901a024041_6

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