2. On February 28, the end of the first month of operations, Kibitz Computer Technology preparedthe following income statement, based on the variable costing concept:Kibitz Computer TechnologyVariable Costing Income StatementFor the Month Ended February 28Sales (250,000 units)2$67,000,000Variable cost of goods sold:Variable cost of goods manufactured$46,000,000Inventory, February 28(5,500,000)Total variable cost of goods sold40,500,000Manufacturing margin2$26,500,000Total variable selling and admin. expenses2,400,000Contribution margin2$24,100,000Fixed CostsFixed manufacturing costs$8,500,000Fixed selling and admin. Expenses375,000Total fixed costs8,875,000Income from operations15,225,000Prepare an income statement under absorption costing.

Name: 2. On February 28, the end of the first month of operations, Kibitz C
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Description: 2. On February 28, the end of the first month of operations, Kibitz Computer Technology preparedthe following income statement, based on the variable costing concept:Kibitz Computer TechnologyVariable Costing Income StatementFor the Month Ended Febr

Working notes: Variable cost of goods sold $40,500,000 a Unit sold…

Answered: On February 28, the end of the first…

Business

Accounting

On February 28, the end of the first month of operations, Kibitz Computer Technology prepared the following income statement, based on the variable costing concept: Kibitz Computer Technology

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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