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Income Statement Through Gross Profit For the Year Ending December 31 Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Unfavorable Favorable

Income Statement Through Gross Profit For the Year Ending December 31 Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Unfavorable Favorable

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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Baxter Company Income Statement Through Gross Profit For the Year Ending December 31 Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Direct materials quantity Direct labor rate Direct labor time Factory overhead controllable Factory overhead volume Net variance from standard cost-unfavorable Gross profit-actual Unfavorable Favorable
Transcribed Image Text:Baxter Company Income Statement Through Gross Profit For the Year Ending December 31 Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Direct materials quantity Direct labor rate Direct labor time Factory overhead controllable Factory overhead volume Net variance from standard cost-unfavorable Gross profit-actual Unfavorable Favorable
Baxter Company sold 8,800 units at $145 per unit. Normal production is 9,200 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.00 hours per unit at $15.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $207,000 (budgeted and actual amount) Actual yards used: 44,500 yards hours at $6.25 per yard Actual hours worked: 17,350 hours at $14.90 per hour Baxter Company Income Statement Through Gross Profit For the Year Ending December 31 Actual total factory overhead: $236,500 Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.
Transcribed Image Text:Baxter Company sold 8,800 units at $145 per unit. Normal production is 9,200 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.00 hours per unit at $15.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $207,000 (budgeted and actual amount) Actual yards used: 44,500 yards hours at $6.25 per yard Actual hours worked: 17,350 hours at $14.90 per hour Baxter Company Income Statement Through Gross Profit For the Year Ending December 31 Actual total factory overhead: $236,500 Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.
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