On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept: Sales (90,000 units) $1,530,000 Variable cost of goods sold: Variable cost of goods manufactured (110,000 units x $12 per unit) $1,320,000 Less ending inventory (20,000 units x $12 per unit) 240,000 Variable cost of goods sold 1,080,000 Manufacturing margin $450,000 Variable selling and administrative expenses 15,000 Contribution margin $435,000 Fixed costs: Fixed manufacturing costs $49,500 Fixed selling and administrative expenses 28,000 77,500 Income from operations $357,500 Question Content Area a. Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Tudor Manufacturing Co.Income Statement-Absorption CostingFor the Month Ended June 30 $- Select - Cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - Income from operations $fill in the blank 0e735b006fd600b_13 Question Content Area b. Reconcile the variable costing income from operations of $357,500 with the absorption costing income from operations determined in (a). Reconciliation of Variable and Absorption Costing Income Variable costing income from operations Absorption costing income from operations Difference
On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept: Sales (90,000 units) $1,530,000 Variable cost of goods sold: Variable cost of goods manufactured (110,000 units x $12 per unit) $1,320,000 Less ending inventory (20,000 units x $12 per unit) 240,000 Variable cost of goods sold 1,080,000 Manufacturing margin $450,000 Variable selling and administrative expenses 15,000 Contribution margin $435,000 Fixed costs: Fixed manufacturing costs $49,500 Fixed selling and administrative expenses 28,000 77,500 Income from operations $357,500 Question Content Area a. Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Tudor Manufacturing Co.Income Statement-Absorption CostingFor the Month Ended June 30 $- Select - Cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - Income from operations $fill in the blank 0e735b006fd600b_13 Question Content Area b. Reconcile the variable costing income from operations of $357,500 with the absorption costing income from operations determined in (a). Reconciliation of Variable and Absorption Costing Income Variable costing income from operations Absorption costing income from operations Difference
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept:
| Sales (90,000 units) | $1,530,000 | |||
| Variable cost of goods sold: | ||||
| Variable cost of goods manufactured (110,000 units x $12 per unit) | $1,320,000 | |||
| Less ending inventory (20,000 units x $12 per unit) | 240,000 | |||
| Variable cost of goods sold | 1,080,000 | |||
| Manufacturing margin | $450,000 | |||
| Variable selling and administrative expenses | 15,000 | |||
| Contribution margin | $435,000 | |||
| Fixed costs: | ||||
| Fixed manufacturing costs | $49,500 | |||
| Fixed selling and administrative expenses | 28,000 | 77,500 | ||
| Income from operations | $357,500 |
Question Content Area
a. Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.
|
|
$- Select - | |
| Cost of goods sold: | ||
|
|
$- Select - | |
|
|
- Select - | |
|
|
- Select - | |
|
|
$- Select - | |
|
|
- Select - | |
| Income from operations | $fill in the blank 0e735b006fd600b_13 |
Question Content Area
b. Reconcile the variable costing income from operations of $357,500 with the absorption costing income from operations determined in (a).
| Variable costing income from operations | |
| Absorption costing income from operations | |
| Difference |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education