Following is the revenue and cost data for Metlock Ltd. in the manufacturing of luxury shower curtains for the year ended December 31, 2022: NewsVariable manufacturingcosts $34 per curtainVariable selling and administrative expenses $8 per curtain Fixed manufacturing overhead $53,900Fixed selling and administrative expenses $184,800Units produced and sold 7, 700Selling price $84 per curtain. Prepare an income statement using absorption costing. Prepare an income statement using variable costing.

The objective of the question is to prepare an income statement for Metlock Ltd. using both…

Answered: Following is the revenue and cost data…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (17,000 units) Production costs (22,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $1,302,400 624,800 312,400 209,000 2,448,600 $379,500 146,900 $2,720,000 If required, round interim per-unit calculations to the nearest cent. 526,400
Rey Company's only product sells for $216 per unit. Data for its first year of operations follow. $ 20 per unit $ 28 per unit $ 6 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced and sold 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 $ 160,000 per year $ 18 per unit $ 200,000 per year 20,000 units Prepare an income statement for the year using absorption costing. REY COMPANY Income Statement (Absorption Costing) Required 1 Required 2 >
Please help me with show all calculation thanku
Prapare an Income Statement Using absorption costing. Prapare an Income Statement Using variable costing.
A company's only product sells for $435 per unit. In its first year of operations, the company produced and sold 4,300 units and reported the following cost information. Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead Fixed overhead Complete this question by entering your answers in the tabs below. Required A Required B Using absorption costing, compute total product cost per unit. Product cost per unit Absorption costing Total product cost per unit $ 39 per unit $430,000 per year $ 43 per unit $59 per unit $ 15 per unit $ 301,000 per year
Prepare Income statement for the month of December 2020 assuming absorption Costing and Variable Costing and state the reason for difference in income computed between absorption costing and variable costing.
Prepare the income statement using the absorption costing method
Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table from the data provided in the income statements. Each company sold 84,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) Unit contribution margin Break-even sales (units) Break-even sales (dollars) Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y7 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing expense $254,400.00 4 Selling expense 21,200.00 5 Administrative expense 63,600.00 339,200.00 6 Contribution margin $84,800.00 7 Fixed costs: 8 Manufacturing expense $5,000.00 9 Selling expense…
Cullumber Industries produces and sells a cell phone-operated home security control systems. Information regarding the costs and sales during May 2022 is as follows. Unit selling price Unit variable costs Total monthly fixed costs Units sold Prepare a CVP income statement for Cullumber Industries for the month of May. (Round per unit answers to 2 decimal places, e.g. 15.25.) Cullumber Industries CVP Income Statement For the Month Ended May 31, 2022 Sales Variable Costs Contribution Margin Fixed Costs $55.00 $31.35 $128,000 7,800 Net Income/(Loss) S Total SA Per Unit 8400 Percent of Sales se
Brindle Arts uses Variable Costing for internal purposes, but uses Absorption Costing for their financial reports. The following information is for Quarter 4, 2021 and Quarter 1, 2022. Calculate unit product costs for Quarters 4 and 1 for Variable and Absorption Costing. Prepare an income statement for each method, then show why there is a difference between the two. Selling price per unit $ 150 Quarter 4 Quarter 1 Variable costs per unit Units in beginning inventory - 1,750 Direct materials $ 45.00 Production (in units) 15,000 10,750 Direct labor $ 20.00 Sales (in units) 13,250 12,500 Variable overhead $ 15.00 Ending inventory 1,750 - Variable S&A $ 10.00 Fixed Costs in total per quarter Fixed manufacturing overhead…
Please help me understand this& the difference Show all work and label all numbers. Etters Manufacturing Company has provided the following financial data for its most recent month. Selling Price $18 Units produced 10,000 Units sold 9,500 Variable costs per unit: Direct materials $6 Direct labor $4 Manufacturing overhead $3 Selling and administrative costs $1 Fixed costs: Manufacturing overhead $12,000 Selling and administrative costs $8,000 Questions: a)Prepare an operating income statement using variable costing. b)Prepare an operating income statement using absorption costing.
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