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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please dont provide solution in image format thanku
Transcribed Image Text:ABC Co. manufactures a single product. The company's operating data for 2021 and 2022 are as
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.
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