Can you please check my work Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statementunder absorption costing for external reporting. For its first month of operations, 375 bikes were produced and 225 were sold; this left150 bikes in ending inventory. The income statement information under variable costing follows.Sales (225 x $1,600)Variable product cost (225Variable selling and administrative expenses ( 225 x $65)Contribution margin$ 360,000140,625$625)14,625204,750Fixed overhead cost56,25075,000$ 73,500Fixed selling and administrative expenseNet income1. Prepare this company's income statement for its first month of operations under absorption costing.2. Fill in the blanks:Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare this company's income statement for its first month of operations under absorption costing.HAYEK BIKES Required 1Required 2Prepare this company's income statement for its first month of operations under absorption costing.HAYEK BIKESAbsorption Costing Income StatementSales$360,000Less: Cost of goods soldVariable product costs$140,625Fixed overhead costsCost of goods soldGross margin140,625Selling general and administrative expensesVariable selling and administrative expenses14,625Fixed selling and administrative costs75,000Total selling general and administrative expenses89,625Net income (loss)Net income under absorption costing is higher than net income under variable costing by:89,625Number of units added to(subtracted from) inventory%24

Period Costs are costs which are not assigned to the products but are charged as expenses against…

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, 375 bikes were produced and 225 were sold; this left 150 bikes in ending inventory. The income statement information under variable costing follows. Sales (225 x $1,600) Variable product cost (225 x $625) Variable selling and administrative expenses (225 x $65) $ 360,000 Contribution margin Fixed overhead cost Fixed selling and administrative expense 140,625 14,625 204,750 56,250 75,000 Net income $ 73,500 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks:

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, 375 bikes were produced and 225 were sold; this left 150 bikes in ending inventory. The income statement information under variable costing follows. Sales (225 x $1,600) Variable product cost (225 x $625) Variable selling and administrative expenses (225 x $65) $ 360,000 Contribution margin Fixed overhead cost Fixed selling and administrative expense 140,625 14,625 204,750 56,250 75,000 Net income $ 73,500 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks:

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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