Exercise 19-7 (Algo) Income reporting under absorption costing and variable costing LO P2 Sims Company began operations on January 1. Its cost and sales information for this year follow. $35 per unit $ 55 per unit $20 per unit $ 8,400,000 per year $ 11 per unit $4,500,000 per year 105,000 units 75,000 units $360 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses. Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) $ 0 0 ||

Exercise 19-7 (Algo) Income reporting under absorption costing and variable costing LO P2 Sims Company began operations on January 1. Its cost and sales information for this year follow. $35 per unit $ 55 per unit $20 per unit $ 8,400,000 per year $ 11 per unit $4,500,000 per year 105,000 units 75,000 units $360 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses. Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) $ 0 0 ||

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Cost Behavior And Cost-volume-profit Analysis

Section: Chapter Questions

Problem 21.28EX: Appendix Absorption costing income statement On June 30, the end of the first month of operations,...

See similar textbooks

Related questions

Q: Natarajan, Inc. had the following operating segments, with the in Segment Expenses $ 650,000…

A: We must contrast the segment revenues with the sum of the revenues of all other segments in order to…

Q: Please correct the aswer

A: The current yield of the bond is referred to as the relationship between the annual coupon amount…

Q: The Quick Buck Company is an all-equity firm that has been in existence for the past three years.…

A: Dividend policy The guidelines set by the board of directors regarding the dividend distribution of…

Q: What does the blank section post mean or what goes there

A: Post Column : It is the Column through which book keeper identify whether journal entries are…

Q: lournal Entries for Accounts and Notes Receivable Lancaster, Inc., began business on January 1.…

Q: Define red-line method

A: Answer: A red-line strategy is nothing but a tactic used for controlling the stock, as it is the…

Q: Any device used to provide the results of processing data is a(n) ________ device. Group of answer…

A: Processing Data: In it, all the information is processed in a systematic way to provide a useful…

Q: not use ai please

A: To manually divide 110 by 39.37 using long division, follow these steps: Step 1: SetupDivide…

Q: What is the purpose of the blind copy of a PO?

A: The blind copy of a Purchase order(PO) provides no details regarding the amount or pricing of the…

Q: Activity F stomer Service

A: 1) S. Inc Activity rate = Total activity cost ÷ Activity Base Customer Service = $29,190 ÷ 210 =…

Q: Choose the term that best describes static data? O Static data does not change once it is created. O…

A: static data does not change once it is createdThe best describes static data does not change once it…

Q: Source documents ________.A. are input devicesB. are output devicesC. do not have to be on paperD.…

A: Accounting is the art of classifying, recording, summarizing, and interpreting financial…

Q: Oriole Company expects to produce 1,260,000 units of product XX in 2022. Monthly production is…

A: Variable Cost :— It is the cost that changes with change in activity of cost driver. Variable cost…

Q: Luis Madero, after working for several years with a large public accounting firm, decided to open…

A: The accounting equation is considered as a mathematical representation of the transaction. It…

Q: Define deferred call

A: Bonds are fixed-income securities issued by a company or government to raise capital from the…

Q: Wrong Answer

A: The cost of purchase is $1800 on October 23. It can be done using one of the two credit cards a)…

Q: help please, the answers I put are not correct

A: Answer a) Calculation of Predetermined overhead application rate Predetermined overhead application…

Q: look at the image to solve the question

A: Meaning of Retained earnings: Retained earnings (RE) is the amount of net income left over for the…

Q: Write me a human paragraph without using Al about what a memorandoms of understanding is and how it…

A: A Memorandum of Understanding (MoU) is a formal agreement between two or more parties. It is not…

Question

Don't give answer in image format

Exercise 19-7 (Algo) Income reporting under absorption costing and variable costing LO P2
Sims Company began operations on January 1. Its cost and sales information for this year follow.
$ 35 per unit
$ 55 per unit
$20 per unit
$8,400,000 per year
$11 per unit
$4,500,000 per year
105,000 units
75,000 units
$360 per unit
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Units produced
Units sold
Sales price
1. Prepare an income statement for the year using variable costing.
2. Prepare an income statement for the year using absorption costing.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare an income statement for the year using absorption costing.
SIMS COMPANY
Income Statement (Absorption Costing)
$
< Required 1
0
0
Required 2 >
11

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!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Absorption Costing -

VIEW

Step 2: Computation of Ending Inventory -

VIEW

Step 3: Income Statement (Absorption Costing) -

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Appendix Absorption costing income statement On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable existing concept: Sales (420,000 units) 7,450,000 Variable cost of goods sold: Variable cost of goods manufactured (500,000 units x 14 per unit) 7,000,000 Less ending inventory (80,000 units x 14 per unit) 1,120,000 Variable cost of goods sold 5,880,000 Manufacturing margin 1,570,000 Variable selling and administrative expenses 80,000 Contribution margin 1,490,000 Fixed costs: Fixed manufacturing costs 160,000 Fixed selling and administrative expenses 75,000 235,000 Income from operations 1,255,000 a. Prepare an absorption costing income statement. b. Reconcile the variable costing income from operations of 1,255,000 with the absorption costing income from operations determined in (a).
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
(Appendix 4B) Sequential Method of Support Department Cost Allocation Refer to Exercise 4-51 for data. Now assume that Stevenson uses the sequential method to allocate support department costs to the operating divisions. General Factory is allocated first in the sequential method for the company. Required: 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.) 2. Allocate the support service costs to the operating divisions. (Note: Round all amounts to the nearest dollar.) 3. Assume divisional overhead rates are based on direct labor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Division. (Note: Round overhead rates to the nearest cent.)
Exercise 19-7 (Algo) Income reporting under absorption costing and variable costing LO P2 Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 40 per unit Direct labor $ 60 per unit Variable overhead $ 40 per unit Fixed overhead $ 6,300,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 5,000,000 per year Units produced 105,000 units Units sold 75,000 units Sales price $ 350 per unit 1. Prepare an income statement for the year using variable costing.2. Prepare an income statement for the year using absorption costing.
Please do not give solution in image format thanku
Alpesh
cost account solution want asap
Exercise 19-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 Skip to question [The following information applies to the questions displayed below.]Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $120 per unit. Direct materials $ 48 per unit Direct labor $ 18 per unit Variable overhead $ 6 per unit Fixed overhead $ 420,000 per year Variable selling and administrative expenses $ 12 per unit Fixed selling and administrative expenses $ 110,000 per year Exercise 19-3 (Algo) 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. 2a. Assume the company uses variable costing. Determine its total product cost per unit. 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $450,000 P2 750,000 $1 273,000 Other data follow: Numbers of employees Production capacity (units) Space occupied (square feet) Five-year average of $1's service output used P1 P2 150 50 100,000 60,000 5,000 15,000 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments. 1. Based on number of employees $ P1 P2 $ 2. Production capacity in units 3. Space occupied 4. Five-year average of $1 service used 627,450✔ 845,550✔ 5. Estimated direct overhead costs
general account questions