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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. The sales 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. Limonade Income Statement (Absorption Costing) Month Ended May 31 Operating Income

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. The sales 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. Limonade Income Statement (Absorption Costing) Month Ended May 31 Operating Income

FINANCIAL ACCOUNTING
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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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. The sales 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. Limonade Income Statement (Absorption Costing) Month Ended May 31 Operating Income
Transcribed Image Text: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. The sales 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. Limonade Income Statement (Absorption Costing) Month Ended May 31 Operating Income
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