In May, Limonade produced 10,000 cases of powdered drink mix and sold 11,000 cases, of which 1,000 were produced in April. The total April production was 15,000. Thesales price was $25, variable costs were $11 per case ($8 manufacturing and $3 selling and administrative), and total fixed costs were $75,000 ($60,000 manufacturing and$15,000 selling and administrative). Limonade's May income statement using variable costing follows:(Click the icon to view the variable costing income statement.)Read the requirements.Requirement 1. Prepare the May income statement using absorption costing.LimonadeIncome Statement (Absorption Costing)Month Ended May 31Operating Income

Detailed explanation:Income statement using absorption costing method :Sales Revenue11000 units x $…

Answered: In May, Limonade produced 10,000 cases…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1COMP

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Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
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Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 12,800 cases in July. The sales prices was $31.00, variable costs were $15.00 per case, comprising $11.00 for manufacturing costs and $4.00 for selling and administrative expenses. Total fixed costs were $70,700, which were made up of manufacturing costs of $44,900 and selling and administrative cost of $25,800. The company had no beginning Finished Goods Inventory.1. Prepare the July income statement using absorption costing.
M Company's highest point of the total cost was $83,000 in June. Their point lowest cost was $69,000 in January. The company makes a single product. Production volumes in June and January were 18,000 and 9,000 units, respectively. What is the fixed cost per month?
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