follows: Number of units in the beginning inventory Number of units produced Number of units sold Number of units in the ending inventory Selling price per unit Variable costs per unit Direct materials Direct labour Variable overhead Variable selling and administrative expenses Fixed overhead Fixed selling and administrative expenses (total) 2021 0 60,000 54,000 6,000 $300 $80 $40 $35 $28 $2,400,000 $324,000 Required: A. Prepare the 2022 income statement using absorption costing. B. Prepare the 2022 income statement using variable costing. 2022 6,000 50,000 54,000 2,000 $300 $80 $45 $35 $30 $2,400,000 $324,000 There was no finished goods inventory on January 1, 2021. The company uses the FIFO method for inventories.
follows: Number of units in the beginning inventory Number of units produced Number of units sold Number of units in the ending inventory Selling price per unit Variable costs per unit Direct materials Direct labour Variable overhead Variable selling and administrative expenses Fixed overhead Fixed selling and administrative expenses (total) 2021 0 60,000 54,000 6,000 $300 $80 $40 $35 $28 $2,400,000 $324,000 Required: A. Prepare the 2022 income statement using absorption costing. B. Prepare the 2022 income statement using variable costing. 2022 6,000 50,000 54,000 2,000 $300 $80 $45 $35 $30 $2,400,000 $324,000 There was no finished goods inventory on January 1, 2021. The company uses the FIFO method for inventories.
Chapter5: Process Costing
Section: Chapter Questions
Problem 12EA: What are the total costs to account for if a companys beginning inventory had $231,432 in materials,...
Related questions
Question
Please dont provide solution in image format thanku
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College