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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fbfcb2-6df1-4a5c-a821-4b5aaeafbd76%2F33321017-5388-4c9d-a0dd-c57b8c7a7f65%2Fev16e1u_processed.png&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fbfcb2-6df1-4a5c-a821-4b5aaeafbd76%2F33321017-5388-4c9d-a0dd-c57b8c7a7f65%2Fiyoiojf_processed.png&w=3840&q=75)
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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