On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (16,000 units) $1,152,000 Cost of goods sold: Cost of goods manufactured $874,000 Less ending inventory (3,000 units) 138,000 Cost of goods sold 736,000 Gross profit $416,000 Selling and administrative expenses 88,000 Income from operations $328,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $57,000 and the variable selling and administrative expenses were $40,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollarn

On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (16,000 units) $1,152,000 Cost of goods sold: Cost of goods manufactured $874,000 Less ending inventory (3,000 units) 138,000 Cost of goods sold 736,000 Gross profit $416,000 Selling and administrative expenses 88,000 Income from operations $328,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $57,000 and the variable selling and administrative expenses were $40,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollarn

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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