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Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 50,000 units, but its production was 80,000 units. It had no beginning finished goods inventory for the current period. Diaz COMPANY Income Statement (Variable Costing) Sales (50,000 units x $60 per unit) Variable expenses Variable manufacturing expense (50,000 units $28 per unit) Variable selling and admin. expense (50,000 units x $5 per unit) Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses Net income $3,000,000 1,400,000 250,000 1,650,000 1,350,000 320,000 160,000 480,000 $ 870,000 1. Convert Diaz's variable costing income statement to an abjorption costing income statement

Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 50,000 units, but its production was 80,000 units. It had no beginning finished goods inventory for the current period. Diaz COMPANY Income Statement (Variable Costing) Sales (50,000 units x $60 per unit) Variable expenses Variable manufacturing expense (50,000 units $28 per unit) Variable selling and admin. expense (50,000 units x $5 per unit) Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses Net income $3,000,000 1,400,000 250,000 1,650,000 1,350,000 320,000 160,000 480,000 $ 870,000 1. Convert Diaz's variable costing income statement to an abjorption costing income statement

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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K 1 nt Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 50,000 units, but its production was 80,000 units. It had no beginning finished goods inventory for the current period. Diaz COMPANY Income Statement (Variable Costing) Sales (50,000 units x $60 per unit) Variable expenses Variable manufacturing expense (50,000 units $28 per unit) Variable selling and admin. expense (50,000 units x $5 per unit) Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses Net income $3,000,000 1,400,000 250,000 1,650,000 1,350,000 320,000 160,000 480,000 $ 870,000 1. Convert Diaz's variable costing income statement to an abjorption costing income statement.
Transcribed Image Text:K 1 nt Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 50,000 units, but its production was 80,000 units. It had no beginning finished goods inventory for the current period. Diaz COMPANY Income Statement (Variable Costing) Sales (50,000 units x $60 per unit) Variable expenses Variable manufacturing expense (50,000 units $28 per unit) Variable selling and admin. expense (50,000 units x $5 per unit) Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses Net income $3,000,000 1,400,000 250,000 1,650,000 1,350,000 320,000 160,000 480,000 $ 870,000 1. Convert Diaz's variable costing income statement to an abjorption costing income statement.
1. Convert Diaz's variable costing income statement to an absorption costing income statement. DIAZ COMPANY Absorption Costing Income Statement Sales Less: Variable costs Fixed overhead costs Gross margin Selling general and administrative expenses Net income (loss) +
Transcribed Image Text:1. Convert Diaz's variable costing income statement to an absorption costing income statement. DIAZ COMPANY Absorption Costing Income Statement Sales Less: Variable costs Fixed overhead costs Gross margin Selling general and administrative expenses Net income (loss) +
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