Exercise 19-10 (Algo) Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 325 bikes were produced and 215 were sold. Income statement information under variable costing follows. Sales (215 x $1,725) Variable cost of goods sold (215 x $625) Variable selling and administrative expenses (215 x $70) Contribution margin Fixed overhead Fixed selling and administrative expenses Income Prepare the company's income statement under absorption costing. $ 370,875 134,375 15,050 221,450 65,000 75,000 $ 81,450
Exercise 19-10 (Algo) Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 325 bikes were produced and 215 were sold. Income statement information under variable costing follows. Sales (215 x $1,725) Variable cost of goods sold (215 x $625) Variable selling and administrative expenses (215 x $70) Contribution margin Fixed overhead Fixed selling and administrative expenses Income Prepare the company's income statement under absorption costing. $ 370,875 134,375 15,050 221,450 65,000 75,000 $ 81,450
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 19-10 (Algo) Absorption costing income statement LO P2
Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement
under absorption costing for external reporting. For its first month of operations, 325 bikes were produced and 215 were sold. Income
statement information under variable costing follows.
Sales (215 x $1,725)
Variable cost of goods sold (215 x $625)
Variable selling and administrative expenses (215 x $70)
Contribution margin
Fixed overhead
Fixed selling and administrative expenses
Income
$ 370,875
134,375
15,050
221,450
65,000
75,000
$ 81,450
Prepare the company's income statement under absorption costing.
HAYEK BIKES
Income Statement (Absorption Costing)
0
$
0
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