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Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results f March: Sales (8,500 units) Production costs (11,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $850,000 $407,000 195,800 97,900 64,900 765,600 $118,700 45,900 164,600 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended March 31

Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results f March: Sales (8,500 units) Production costs (11,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $850,000 $407,000 195,800 97,900 64,900 765,600 $118,700 45,900 164,600 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended March 31

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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Homework help. Chapter 21 number 2. Need help with missing data for part A and part B. Thank You!

 

Income Statements under Absorption Costing and Variable Costing Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results for March: Sales (8,500 units) Production costs (11,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses Line Item Description Sales Cost of goods sold Gross profit Selling and administrative expenses If required, round interim per-unit calculations to the nearest cent. Operating Income ✓ a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended March 31 -✓ ✓ Amount $1 $850,000 $407,000 195,800 97,900 64,900 765,600 $118,700 45,900 $ 164,600
Transcribed Image Text:Income Statements under Absorption Costing and Variable Costing Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results for March: Sales (8,500 units) Production costs (11,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses Line Item Description Sales Cost of goods sold Gross profit Selling and administrative expenses If required, round interim per-unit calculations to the nearest cent. Operating Income ✓ a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc. Absorption Costing Income Statement For the Month Ended March 31 -✓ ✓ Amount $1 $850,000 $407,000 195,800 97,900 64,900 765,600 $118,700 45,900 $ 164,600
b. Prepare an income statement according to the variable costing concept. Crazy Mountain Sports Inc. Variable Costing Income Statement For the Month Ended March 31 Line Item Description Sales ✓ Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Total fixed costs -✓ Operating income ✓ Fixed factory overhead costs Fixed selling and administrative expenses ✓ ✓ ✓ ✓ ✓ Amount 8 100000001
Transcribed Image Text:b. Prepare an income statement according to the variable costing concept. Crazy Mountain Sports Inc. Variable Costing Income Statement For the Month Ended March 31 Line Item Description Sales ✓ Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Total fixed costs -✓ Operating income ✓ Fixed factory overhead costs Fixed selling and administrative expenses ✓ ✓ ✓ ✓ ✓ Amount 8 100000001
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