PA16. LO 6.5 Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning inventory Units produced Units sold Selling price per unit Variable sales and administration expenses Fixed sales and administration expenses Direct material cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost per month 0 25,000 20,000 145 5 $ $975,000 $ 25 $ 11 $ 3 $980,000 Prepare an income statement under both the absorption and variable costing methods along with a reconciliation between the two statements.
PA16. LO 6.5 Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning inventory Units produced Units sold Selling price per unit Variable sales and administration expenses Fixed sales and administration expenses Direct material cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost per month 0 25,000 20,000 145 5 $ $975,000 $ 25 $ 11 $ 3 $980,000 Prepare an income statement under both the absorption and variable costing methods along with a reconciliation between the two statements.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:PA16. LO 6.5 Appliance Apps has the following costs associated with its production and sale of devices that allow appliances
to receive commands from cell phones.
Beginning inventory
Units produced
Units sold
Selling price per unit
Variable sales and administration expenses
Fixed sales and administration expenses
Direct material cost per unit
Direct labor cost per unit
Variable manufacturing overhead cost per unit
Fixed manufacturing overhead cost per month
$
$
0
25,000
20,000
145
5
$975,000
$
25
$
11
$
$980,000
3
Prepare an income statement under both the absorption and variable costing methods along with a reconciliation between the
two statements.
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