Exercises 18-44 (Algo) Profit Centers: Comparison of Variable and Full Costing [LO 18-3, 18-4] es Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the pri year. These data summarize the current and prior year operations: -Fixed (000s) Prior Year. 2,700 units 3,800 units $ 0.60 $ 1,900 $ 0.40 $ 500 Current Year 4,900 units 3,800 units $ 0.60 $ 1,900 $ 0.40 $ 500 Sales (800s) Production (8005) Production cost Factory-variable (per unit) Marketing-variable (per unit) Administrative-fixed (0005) Required: 1. Prepare an income statement for each year based on full costing. 2 Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an income statement for each year based on full costing. Note: Enter your answers in thousands of dollars. Sales Less: Cost of goods sold Beginning inventory Cost of goods produced Available for sale Less: Ending inventory Cost of goods sold Gross margin Less: Selling and administrative costs Variable Fixed Operating income YALE COMPANY Full Costing Income Statement Prior Year Current Year 5 8,100 14.700 Required 2 >
Exercises 18-44 (Algo) Profit Centers: Comparison of Variable and Full Costing [LO 18-3, 18-4] es Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the pri year. These data summarize the current and prior year operations: -Fixed (000s) Prior Year. 2,700 units 3,800 units $ 0.60 $ 1,900 $ 0.40 $ 500 Current Year 4,900 units 3,800 units $ 0.60 $ 1,900 $ 0.40 $ 500 Sales (800s) Production (8005) Production cost Factory-variable (per unit) Marketing-variable (per unit) Administrative-fixed (0005) Required: 1. Prepare an income statement for each year based on full costing. 2 Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an income statement for each year based on full costing. Note: Enter your answers in thousands of dollars. Sales Less: Cost of goods sold Beginning inventory Cost of goods produced Available for sale Less: Ending inventory Cost of goods sold Gross margin Less: Selling and administrative costs Variable Fixed Operating income YALE COMPANY Full Costing Income Statement Prior Year Current Year 5 8,100 14.700 Required 2 >
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...
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un.1
![Exercises 18-44 (Algo) Profit Centers: Comparison of Variable and Full Costing [LO 18-3, 18-4]
es
Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the pri
year. These data summarize the current and prior year operations:
-Fixed (000s)
Prior Year.
2,700 units
3,800 units
$ 0.60
$ 1,900
$ 0.40
$ 500
Current Year
4,900 units
3,800 units
$ 0.60
$ 1,900
$ 0.40
$ 500
Sales (800s)
Production (8005)
Production cost
Factory-variable (per unit)
Marketing-variable (per unit)
Administrative-fixed (0005)
Required:
1. Prepare an income statement for each year based on full costing.
2 Prepare an income statement for each year based on variable costing.
3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and
variable costing method.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare an income statement for each year based on full costing.
Note: Enter your answers in thousands of dollars.
Sales
Less: Cost of goods sold
Beginning inventory
Cost of goods produced
Available for sale
Less: Ending inventory
Cost of goods sold
Gross margin
Less: Selling and administrative costs
Variable
Fixed
Operating income
YALE COMPANY
Full Costing
Income Statement
Prior Year
Current Year
5
8,100
14.700
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b2c6705-90a4-4fe6-953a-cea8f35dfa3c%2F51316d20-98e9-43e0-8aec-9bfe34e44b91%2Far4cup8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercises 18-44 (Algo) Profit Centers: Comparison of Variable and Full Costing [LO 18-3, 18-4]
es
Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the pri
year. These data summarize the current and prior year operations:
-Fixed (000s)
Prior Year.
2,700 units
3,800 units
$ 0.60
$ 1,900
$ 0.40
$ 500
Current Year
4,900 units
3,800 units
$ 0.60
$ 1,900
$ 0.40
$ 500
Sales (800s)
Production (8005)
Production cost
Factory-variable (per unit)
Marketing-variable (per unit)
Administrative-fixed (0005)
Required:
1. Prepare an income statement for each year based on full costing.
2 Prepare an income statement for each year based on variable costing.
3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and
variable costing method.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare an income statement for each year based on full costing.
Note: Enter your answers in thousands of dollars.
Sales
Less: Cost of goods sold
Beginning inventory
Cost of goods produced
Available for sale
Less: Ending inventory
Cost of goods sold
Gross margin
Less: Selling and administrative costs
Variable
Fixed
Operating income
YALE COMPANY
Full Costing
Income Statement
Prior Year
Current Year
5
8,100
14.700
Required 2 >
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