Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 21,800 units, and 2,900 units remain in ending finished goods inventory for May. Fixed overhead was $43,600. Variable selling and administration expenses were $39,000 and fixed selling and administrative expenses were $19,400. Sales (18,900 units) $ 378,000 Cost of goods sold 294,000 Gross profit 84,000 Selling and administrative expenses 58,400 Income $ 25,600 Prepare an income statement using variable costing.
Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 21,800 units, and 2,900 units remain in ending finished goods inventory for May. Fixed overhead was $43,600. Variable selling and administration expenses were $39,000 and fixed selling and administrative expenses were $19,400. Sales (18,900 units) $ 378,000 Cost of goods sold 294,000 Gross profit 84,000 Selling and administrative expenses 58,400 Income $ 25,600 Prepare an income statement using variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 21,800 units, and 2,900 units remain in ending finished goods inventory for May. Fixed
| Sales (18,900 units) | $ 378,000 |
|---|---|
| Cost of goods sold | 294,000 |
| Gross profit | 84,000 |
| Selling and administrative expenses | 58,400 |
| Income | $ 25,600 |
Prepare an income statement using variable costing.
Transcribed Image Text:DION COMPANY
Income Statement (Variable Costing)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education