Aspen Popular Company prepared the following absorption-costing income statement for the year ended May 31, 2015. Sales (8,000 units) $160,000 Cost of goods sold $108,000 Gross margin $52,000 Selling and administrative expenses $18,000 Operating income $ 29,000 Additional information follows: Variable Selling and administrative expenses include $1.50 per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs Required: Prepare a variable-costing income statement for the same period.
Aspen Popular Company prepared the following absorption-costing income statement for the year ended May 31, 2015. Sales (8,000 units) $160,000 Cost of goods sold $108,000 Gross margin $52,000 Selling and administrative expenses $18,000 Operating income $ 29,000 Additional information follows: Variable Selling and administrative expenses include $1.50 per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs Required: Prepare a variable-costing income statement for the same period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q1: Aspen Popular Company prepared the following absorption-costing income statement for the year ended May 31, 2015.
Sales (8,000 units) $160,000
Cost of goods sold $108,000
Gross margin $52,000
Selling and administrative expenses $18,000
Operating income $ 29,000
Additional information follows:
Variable Selling and administrative expenses include $1.50 per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable
Required:
Prepare a variable-costing income statement for the same period.
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