materials per unit Direct labor per unit $ $ Variable manufacturing overhead per unit $ Variable selling and administration expenses $ Units produced Units sold Sales price Fixed manufacturing expenses Fixed selling and administration expenses $ 2.50 1.50 0.25 1.75 40,000 35,000 12 $140,000 $ 20,000 Requirements: 1.) Prepare an income statement under variable costing. 2.) Prepare an income statement under absorption costing. 3.) Prepare a reconciliation to the income under the absorption method.
materials per unit Direct labor per unit $ $ Variable manufacturing overhead per unit $ Variable selling and administration expenses $ Units produced Units sold Sales price Fixed manufacturing expenses Fixed selling and administration expenses $ 2.50 1.50 0.25 1.75 40,000 35,000 12 $140,000 $ 20,000 Requirements: 1.) Prepare an income statement under variable costing. 2.) Prepare an income statement under absorption costing. 3.) Prepare a reconciliation to the income under the absorption method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:PA17. LO 6.5 This information was collected for the first year of manufacturing for Appliance Apps:
Direct materials per unit
Direct labor per unit
$
$
$
Variable manufacturing overhead per unit
Units produced
Variable selling and administration expenses $
Units sold
Sales price
Fixed manufacturing expenses
Fixed selling and administration expenses
2.50
1.50
0.25
1.75
40,000
35,000
12
$
$140,000
$ 20,000
Requirements:
1.) Prepare an income statement under variable costing.
2.) Prepare an income statement under absorption costing.
3.) Prepare a reconciliation to the income under the absorption method.
FIVE STAR
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