Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825. at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (825 × $1,075) Cost of goods sold (825 × $450) Gross margin Selling and administrative expenses Net income Additional Information $ 886,875 371,250 515,625 240,000 $ 275,625 a. Product cost per kayak totals $450, which consists of $350 in variable production cost and $100 fixed production cost-the latter amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced. b. The $240,000 in selling and administrative expense consists of $105,000 that is variable and $135,000 that is fixed. Required 1. Prepare an income statement for the current year under variable costing.

Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825. at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (825 × $1,075) Cost of goods sold (825 × $450) Gross margin Selling and administrative expenses Net income Additional Information $ 886,875 371,250 515,625 240,000 $ 275,625 a. Product cost per kayak totals $450, which consists of $350 in variable production cost and $100 fixed production cost-the latter amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced. b. The $240,000 in selling and administrative expense consists of $105,000 that is variable and $135,000 that is fixed. Required 1. Prepare an income statement for the current year under variable costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How is the access control list approach different from RBAC?
could not understand need manual answer not on excel
Adjusting entries and error example
Please help me,
U the common shares is $165 each and market price of the preferred is $230 each. (Round to nearest dollar.) b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $170 per share. E14.6 (LO 1, 2) (Stock Issuances and Repurchase) Lindsey Hunter Corporation is authorized to issue 50,000 shares of $5 par value common stock. During 2025, Lindsey Hunter took part in the following selected transactions. a. Issued 5,000 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,000. b. Issued 1,000 shares of stock for land appraised at $50,000. The stock was actively traded on a national stock exchange at approximately $46 per share on the date of issuance. c. Purchased 500 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2021 at $40 per share. d. Retired the treasury shares purchased in part (c). Instructions Prepare the journal entries to record these…
how to find ADF
Can I gt help for part iv, v, vi tank u
Answer the missing numbers.
Write a about memorandum message
How do you access the Power Query interface?
The easiest way to change the order in a chart is in the __________. Multiple Choice underlying spreadsheet slicer chart options chart itself