Income Statements and Firm Performance: Variable and Absorption Costing Jellison Company had the following operating data for its first two years of operations: Variable costs per unit: Direct materials 4.00 Direct labor $2.90 Variable overhead 1.50 Fixed costs per year: Overhead 180,000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing. Prepare income statements for both years using variable costing. If an amount is zero, enter "0". Jellison CompanyVariable-Costing Income StatementFor Years 1 and 2 Year 1 Year 2 Contribution margin Less: Operating income Variable cost of goods sold:
Income Statements and Firm Performance: Variable and Absorption Costing Jellison Company had the following operating data for its first two years of operations: Variable costs per unit: Direct materials 4.00 Direct labor $2.90 Variable overhead 1.50 Fixed costs per year: Overhead 180,000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing. Prepare income statements for both years using variable costing. If an amount is zero, enter "0". Jellison CompanyVariable-Costing Income StatementFor Years 1 and 2 Year 1 Year 2 Contribution margin Less: Operating income Variable cost of goods sold:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Income Statements and Firm Performance: Variable and Absorption Costing
Jellison Company had the following operating data for its first two years of operations:
| Variable costs per unit: | |||
| Direct materials | 4.00 | ||
| Direct labor | $2.90 | ||
| Variable |
1.50 | ||
| Fixed costs per year: | |||
| Overhead | 180,000 | ||
| Selling and administrative | 70,350 |
Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing.
Prepare income statements for both years using variable costing. If an amount is zero, enter "0".
Jellison CompanyVariable-Costing Income StatementFor Years 1 and 2
| Year 1 | Year 2 | |
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| Contribution margin | ||
| Less: | ||
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| Operating income | ||
| Variable cost of goods sold: | ||
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| Cost of goods sold |
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