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(Click the icon to view the data using variable costing.) Read the requirements. Requirement 1. Prepare the April income statement using absorption costing. Net Sales Revenue Cost of Goods Sold: Income Statement (Absorption Costing) Month Ended April 30 Variable Cost of Goods Sold Fixed Cost of Goods Sold Gross Profit Selling and Administrative Costs: ReVitalAde Operating Income Fixed Selling and Administrative Costs Variable Selling and Administrative Costs 348000 Requirements 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. Reference Print Done Total product cost per unit Cost of Finished Goods Inventory as of April 30 Print Done $ $ Variable Costing - X - X 9.00 9,000

(Click the icon to view the data using variable costing.) Read the requirements. Requirement 1. Prepare the April income statement using absorption costing. Net Sales Revenue Cost of Goods Sold: Income Statement (Absorption Costing) Month Ended April 30 Variable Cost of Goods Sold Fixed Cost of Goods Sold Gross Profit Selling and Administrative Costs: ReVitalAde Operating Income Fixed Selling and Administrative Costs Variable Selling and Administrative Costs 348000 Requirements 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. Reference Print Done Total product cost per unit Cost of Finished Goods Inventory as of April 30 Print Done $ $ Variable Costing - X - X 9.00 9,000

FINANCIAL ACCOUNTING
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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ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,000 cases in April. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable costing: (Click the icon to view the data using variable costing.) Read the requirements. Requirement 1. Prepare the April income statement using absorption costing. Net Sales Revenue Cost of Goods Sold: Income Statement (Absorption Costing) Month Ended April 30 Variable Cost of Goods Sold Fixed Cost of Goods Sold Gross Profit Selling and Administrative Costs: ReVitalAde Operating Income Fixed Selling and Administrative Costs Variable Selling and Administrative Costs 348000 ← Requirements 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. Reference Print Done Total product cost per unit Cost of Finished Goods Inventory as of April 30 Print Done Variable Costing $ $ - X 9.00 9,000 X
Transcribed Image Text:ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,000 cases in April. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable costing: (Click the icon to view the data using variable costing.) Read the requirements. Requirement 1. Prepare the April income statement using absorption costing. Net Sales Revenue Cost of Goods Sold: Income Statement (Absorption Costing) Month Ended April 30 Variable Cost of Goods Sold Fixed Cost of Goods Sold Gross Profit Selling and Administrative Costs: ReVitalAde Operating Income Fixed Selling and Administrative Costs Variable Selling and Administrative Costs 348000 ← Requirements 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. Reference Print Done Total product cost per unit Cost of Finished Goods Inventory as of April 30 Print Done Variable Costing $ $ - X 9.00 9,000 X
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