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. Required: Question Content Area 1. Prepare income statements for both years using absorption costing. If an amount is zero, enter "0". Jellison CompanyAbsorption-Costing Income StatementFor Years 1 and 2 Year 1 Year 2 Gross profit Operating income Cost of goods sold: Cost of goods sold
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. Required: Question Content Area 1. Prepare income statements for both years using absorption costing. If an amount is zero, enter "0". Jellison CompanyAbsorption-Costing Income StatementFor Years 1 and 2 Year 1 Year 2 Gross profit Operating income Cost of goods sold: Cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question Content Area
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.
Required:
Question Content Area
1. Prepare income statements for both years using absorption costing. If an amount is zero, enter "0".
| Year 1 | Year 2 | |
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| Gross profit | ||
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| Operating income | ||
| Cost of goods sold: | ||
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| Cost of goods sold |
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