Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for externalreporting. For its first month of operations, 400 bikes were produced and 240 were sold. Income statement information under variable costing follows. Sales (240 \times $1,725) $414,000 Variable cost of goods sold (240 \times $600) 144,000 Variable selling and administrative expenses (240 \times $70) 16,800 Contribution margin253,200 Fixed overhead 68,000 Fixed selling and administrative expenses 85,000 Income $ 100, 200 Prepare the company's income statement under absorption costing.

To prepare the income statement under absorption costing, we need to allocate fixed manufacturing…

Answered: Hayek Bikes prepares the income…

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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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead. Variable selling and administrative expense Multiple Choice Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the unit product cost for the month under variable costing? $110 per unit $137 per unit $143 0 $120 per unit 6,850 6,550 300 $93 per unit $23 $53 $17 $17 $184,950 $ 27,300
Please give me step by step instruction on how to get cost of goods manufactured using the following: Cost of Goods Manufactured, using Variable and Absorption Costing On June 30, the end of the first year of operations, Johnson Industries, Inc., manufactured 6,100 units and sold 5,200 units. The following income statement was prepared, based on the variable costing concept: Johnson Industries, Inc.Variable Costing Income StatementFor the Year Ended June 30, 2016 Sales $1,300,000 Variable cost of goods sold: Variable cost of goods manufactured $732,000 Less inventory, June 30 108,000 Variable cost of goods sold 624,000 Manufacturing margin $676,000 Variable selling and administrative expenses 156,000 Contribution margin $520,000 Fixed costs: Fixed manufacturing costs $335,500 Fixed selling and administrative expenses 104,000 439,500 Income from operations $80,500 Determine the unit cost of goods manufactured,…
The section of Waterways that produces controllers for the company provided the following information. Sales for month of February 4,200 Variable manufacturing cost per unit $10.00 Sales price per unit $43.00 Fixed manufacturing overhead cost (per month for controllers) $83,000 Variable selling and administrative expenses per unit $2.90 Fixed selling and administrative expenses (per month for controllers) $13,250 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product. Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.) % Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars $ Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.) %
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Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 400 bikes were produced and 240 were sold Income statement information under variable costing follows. Sales (240 * $1,775) Variable cost of goods sold (240x $600) $ 420,000 Variable selling and administrative expenses (248 $65) Contribution margin 144,000 15,600 266,400 Fixed overhead 68,000 Fixed selling and administrative expenses 75,990 Income $ 123,400 Prepare the company's income statement under absorption costing. HAYEK BIKES Income Statement (Absorption Costing) S 426,000 Sales Cost of goods sold 426,000 Gross profit $ 426,000 Selling and administrative expenses Income Required information (The following information applies to the questions displayed below] Barnes Company reports the following for its product for its first year of operations. Direct materials Direct…
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Namco Inc. is a large company that segments its business into cost and profit centers. The Cost center for the manufacture of Product M2T incurred the following costs in October: Direct Labor: $25/unit Direct Materials: $80/unit Variable Overhead: $15/unit Traceable Fixed Costs: $62,000 Common Fixed Costs: $100,000 Sales were 2,000 units in October. Each unit sells for $210. The M2T Department is being evaluated on overall profitability. In September, the department margin was $100,000. By how much did the department margin increase or decrease in October? Select one: a. $100,000 decrease b. $18,000 increase c. $82,000 decrease d. $118,000 increase e. $80,000 increase

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