If the fixed manufacturing costs were $16,254 and the fixed selling and administrative expenses were $6,600, prepare arincome statement according to the variable costing concept. Round all final answers to whole dollars.Joplin CompanyVariable Costing Income StatementFor the Month Ended April 30Sales v74,000Variable cost of goods sold:Variable cost of goods manufactured v43,946Inventory, April 306,132Total variable cost of goods sold vManufacturing margin vVariable selling and administrative expenses6,880Contribution marginXFixed costs:Fixed manufacturing costs16,254Fixed selling and administrative expenses v6,600Total fixed costs22,854Operating income Variable Costing Income StatementOn April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on theabsorption costing concept:Joplin CompanyAbsorption Costing Income StatementFor the Month Ended April 30Sales (3,700 units)$74,000Cost of goods sold:Cost of goods manufactured (4,300 units)$60,200Inventory, April 30 (600 units)(8,400)Total cost of goods sold(51,800)Gross profit$22,200Selling and administrative expenses(13,480)Operating income$8,720If the fixed manufacturing costs were $16,254 and the fixed selling and administrative expenses were $6,600, prepare anincome statement according to the variable costing concept. Round all final answers to whole dollars.

Variable Costing Income Statement - Variable Costing is prepared by deducting all variable expense…

If the fixed manufacturing costs were $16,254 and the fixed selling and administrative expenses were $6,600, prepare income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the Month Ended April 30 Sales v 74,000 Variable cost of goods sold: Variable cost of goods manufactured v 43,946 Inventory, April 30 v 6,132 Total variable cost of goods sold v Manufacturing margin v Variable selling and administrative expenses v 6,880 Contribution margin v X Fixed costs: Fixed manufacturing costs 16,254 Fixed selling and administrative expenses 6,600 V Total fixed costs v 22,854 Operating income v

If the fixed manufacturing costs were $16,254 and the fixed selling and administrative expenses were $6,600, prepare income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the Month Ended April 30 Sales v 74,000 Variable cost of goods sold: Variable cost of goods manufactured v 43,946 Inventory, April 30 v 6,132 Total variable cost of goods sold v Manufacturing margin v Variable selling and administrative expenses v 6,880 Contribution margin v X Fixed costs: Fixed manufacturing costs 16,254 Fixed selling and administrative expenses 6,600 V Total fixed costs v 22,854 Operating income v

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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On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept: Weatherford Company Absorption Costing Income Statement For the Month Ended November 30 Sales (6,100 units) Cost of goods sold: Cost of goods manufactured (7,000 units) Inventory, November 30 (1,000 units) Total cost of goods sold Gross profit $161,000 Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, November 30 (23,000) $201,300 138,000 $63,300 Selling and administrative expenses 35,910 Income from operations $27,390 Assume the fixed manufacturing costs were $38,640 and the fixed selling and administrative expenses were $17,590 Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Weatherford Company Variable Costing Income Statement For the Month Ended November 30 201,300
Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin CompanyAbsorption Costing Income StatementFor the Month Ended April 30 Sales (6,600 units) $178,200 Cost of goods sold: Cost of goods manufactured (7,700 units) $146,300 Inventory, April 30 (1,100 units) (20,900) Total cost of goods sold (125,400) Gross profit $52,800 Selling and administrative expenses (32,280) Operating income $20,520 If the fixed manufacturing costs were $39,501 and the fixed selling and administrative expenses were $15,810, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin CompanyVariable Costing Income StatementFor the Month Ended April 30 $Sales Variable cost of goods sold: $Variable cost of goods manufactured…
Income Statements under Absorption Costing and Variable Costing Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (70,400 units) during the first month, creating an ending inventory of 6,400 units. During February, the company produced 64,000 units during the month but sold 70,400 units at $90 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Manufacturing costs in February 1 beginning inventory: Variable Fixed Total Manufacturing costs in February: Variable Fixed Total Selling and administrative expenses in February: Variable Fixed Total Number of Units Cost of goods sold: 6,400 $36.00 6,400 14.00 64,000 64,000 Unit Cost 70,400 70,400 Total Cost $230,400 89,600 $50.00 $320,000 $36.00 $2,304,000 15.40 985,600 $51.40 $3,289,600 $18.20 $1,281,280 7.00 492,800 $25.20 $1,774,080 a. Prepare an income statement according to the absorption…
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Michie Company's management accountant prepared the following income statement relating to its second year of operations using the absorption costing format: Michie Company Income Statement (Absorption Costing) Year Ended December 31, Year 2 Sales Cost of goods sold: Beginning inventory Variable and fixed manufacturing costs Cost of goods available for sale Less ending inventory Total cost of goods sold Gross margin Less operating costs: Variable selling and administrative costs Fixed selling and administrative costs Net income (50,000 x $ 20.00) (10,000 $ 10.00*) (45,000 x $ 10.00*) (55,000 $10.00) (5,000 * $ 10.00) $ 1,000,000 $ 100,000 450,000 550,000 50,000 (500,000) $ 500,000 (50,000 x $ 2.00) $ 100,000 150,000 Variable manufacturing costs of $8.00 plus fixed manufacturing costs of $2.00. (250,000) $ 250,000
On October 31, the end of the first month of operations, Maryville Equipment Company pre- pared the following income statement, based on the variable costing concept: Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (220,000 units).... $ 7,920,000 Variable cost of goods sold: Variable cost of goods manufactured . Inventory, October 31 (45,000 units) .. Total variable cost of goods sold... Manufacturing margin....... Variable selling and administrative expenses $ 6,360,000 (1,080,000) (5,280,000) $ 2,640,000 (330,000) $ 2,310,000 Contribution margin... Fixed costs: Fixed manufacturing costs ... Fixed selling and administrative expenses.. $ 530,000 100,000 Total fixed costs.... (630,000) $ 1,680,000 Operating income... Prepare an income statement under absorption costing.
Variable Costing Income Statement On April 30, the end of the first month of operations, Jopl Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (4,600 units) Cost of goods sold: Cost of goods manufactured (5,200 units) Inventory, April 30 (700 units) Total cost of goods sold Gross profit Selling and administrative expenses Operating income Joplin Company Variable Costing Income Statement For the Month Ended April 30 Variable cost of goods sold: If the fixed manufacturing costs were $29,484 and the fixed selling and administrative expenses were $12,590, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. 1:110 $109,200 (14,700) Fixed costs: $138,000 (94,500) $43,500 (25,700) $17,800
2. On February 28, the end of the first month of operations, Kibitz Computer Technology prepared the following income statement, based on the variable costing concept: Kibitz Computer Technology Variable Costing Income Statement For the Month Ended February 28 Sales (250,000 units) 2$ 67,000,000 Variable cost of goods sold: Variable cost of goods manufactured $ 46,000,000 Inventory, February 28 (5,500,000) Total variable cost of goods sold 40,500,000 Manufacturing margin 2$ 26,500,000 Total variable selling and admin. expenses 2,400,000 Contribution margin 2$ 24,100,000 Fixed Costs Fixed manufacturing costs $ 8,500,000 Fixed selling and admin. Expenses 375,000 Total fixed costs 8,875,000 Income from operations 15,225,000 Prepare an income statement under absorption costing.
The level of inventory of a manufactured product has increased by 7,859 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 2.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $78,590 increase Ob. $62,872 increase Oc. $78,590 decrease Od. $62,872 decrease
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Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc.Absorption Costing Income StatementFor the Year Ended December 31 Sales $1,200,000 Cost of goods sold: Cost of goods manufactured $840,000 Ending inventory (210,000) Total cost of goods sold (630,000) Gross profit $570,000 Selling and administrative expenses (290,000) Operating income $280,000 Variable Statement Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. This type of income statement includes a computation of manufacturing margin. Saxon, Inc.Variable Costing Income StatementFor the Year Ended December 31 Sales $1,200,000 Variable cost of goods sold: Variable cost of goods manufactured $600,000 Ending inventory (150,000) Total variable cost of goods sold (450,000) Manufacturing margin $750,000…