Please do not give solution in image format thanku 5. A business operated at 100% capacity during its first month ofoperations, with the following results:Sales (90 units)Production costs (100 units)Direct materialsDirect laborVariable factory overheadFixed factory overheadTotal manufacturing costsOperating expenses:Variable$40,00020,0002,0007,000Variable operating expenses $8,000Fixed operating expenses1,000Total operating expenses$90,00069,0009,000Use this information to complete a variable costing income statement.

In Variable Costing income statement, variable expenses incurred are reduced from the sale revenue…

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ations, with the (90 units) ction costs (100 units) ect materials ect labor

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Please do not give solution in image format thanku

5. A business operated at 100% capacity during its first month of
operations, with the following results:
Sales (90 units)
Production costs (100 units)
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Total manufacturing costs
Operating expenses:
Variable
$40,000
20,000
2,000
7,000
Variable operating expenses $8,000
Fixed operating expenses
1,000
Total operating expenses
$90,000
69,000
9,000
Use this information to complete a variable costing income statement.

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