During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 165,000 mini refrigerators, of which 150,000 were sold. Operating data for the month are summarized as follows:1Sales $11,250,000.002Manufacturing costs: 3Direct materials$1,980,000.00 4Direct labor4,290,000.00 5Variable manufacturing cost412,500.00 6Fixed manufacturing cost2,475,000.009,157,500.007Selling and administrative expenses: 8Variable$450,000.00 9Fixed1,125,000.001,575,000.00Required:1.Prepare an income statement based on the absorption costing concept
During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 165,000 mini refrigerators, of which 150,000 were sold. Operating data for the month are summarized as follows:1Sales $11,250,000.002Manufacturing costs: 3Direct materials$1,980,000.00 4Direct labor4,290,000.00 5Variable manufacturing cost412,500.00 6Fixed manufacturing cost2,475,000.009,157,500.007Selling and administrative expenses: 8Variable$450,000.00 9Fixed1,125,000.001,575,000.00Required:1.Prepare an income statement based on the absorption costing concept
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 165,000 mini refrigerators, of which 150,000 were sold. Operating data for the month are summarized as follows:1Sales $11,250,000.002Manufacturing costs: 3Direct materials$1,980,000.00 4Direct labor4,290,000.00 5Variable manufacturing cost412,500.00 6Fixed manufacturing cost2,475,000.009,157,500.007Selling and administrative expenses: 8Variable$450,000.00 9Fixed1,125,000.001,575,000.00Required:1.Prepare an income statement based on the absorption costing concept
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