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 (161,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 141,000 units during the mont but sold 161,000 units at $520 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Total Cost Cost Manufacturing costs in February 1 beginning inventory: Variable 20,000 $260.00 $5,200,000 Fixed 20,000 40.00 800,000 Total $300.00 $6,000,000 Manufacturing costs in February: Variable Fixed Total 141,000 $260.00 $36,660,000 141,000 46.20 6,514,200 $306.20 $43,174,200 Selling and administrative expenses in February: Variable 161,000 $30.80 $4,958,800 Fixed 161,000 4.00 644,000 $34.80 $5,602,800 Total This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the Check My Work Previous

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 (161,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 141,000 units during the mont but sold 161,000 units at $520 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Total Cost Cost Manufacturing costs in February 1 beginning inventory: Variable 20,000 $260.00 $5,200,000 Fixed 20,000 40.00 800,000 Total $300.00 $6,000,000 Manufacturing costs in February: Variable Fixed Total 141,000 $260.00 $36,660,000 141,000 46.20 6,514,200 $306.20 $43,174,200 Selling and administrative expenses in February: Variable 161,000 $30.80 $4,958,800 Fixed 161,000 4.00 644,000 $34.80 $5,602,800 Total This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the Check My Work Previous

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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At the end of the first year of operations, 5,600 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $29.10 Direct labor 13.20 Fixed factory overhead 4.80 Variable factory overhead 4.20 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing $ Variable costing $
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Income statements under absorption and variable costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (3,500 units) $2,345,000 Production costs (4,000 units): Direct materials $1,152,400 Direct labor 495,600 Variable factory overhead 80,800 Fixed factory overhead 126,800 1,855,600 Selling and administrative expenses: Variable selling and administrative expenses $57,500 Fixed selling and administrative expenses 24,100 81,600 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income…