Game Play manufactures video games that it sells for $41 each. The company uses a fixed manufacturing overhears allocation rate of $5 per game. Assume all costs and production levels are exactly as planned. The following data are from Game plays’s first two months in business during 2018:   Requirement 2. Prepare monthly income statements for October and November, including columns for each month and a total columnusing absorption costing.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Game Play manufactures video games that it sells for $41 each. The company uses a fixed manufacturing overhears allocation rate of $5 per game. Assume all costs and production levels are exactly as planned. The following data are from Game plays’s first two months in business during 2018:

 

Requirement 2. Prepare monthly income statements for October and November, including columns for each month and a total columnusing absorption costing.

Game Play
Absorption Costing Income Statement
October 2018
November 2018
Total
Net Sales Revenue
49,200
Cost of Goods Sold
Gross Profit
Selling and Administrative Costs
Operating Income
Transcribed Image Text:Game Play Absorption Costing Income Statement October 2018 November 2018 Total Net Sales Revenue 49,200 Cost of Goods Sold Gross Profit Selling and Administrative Costs Operating Income
October
November
1,200 units
2,700 units
Sales
2,400units
2,400 units
Production
Variable manufacturing cost per game
S.
15 S
15
Sales commission cost per game
12,000
12.000
Total fixed manufacturing overhead
7,500
7.500
Total fixed selling and administrative costs
Print
Done
%24
Transcribed Image Text:October November 1,200 units 2,700 units Sales 2,400units 2,400 units Production Variable manufacturing cost per game S. 15 S 15 Sales commission cost per game 12,000 12.000 Total fixed manufacturing overhead 7,500 7.500 Total fixed selling and administrative costs Print Done %24
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