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Prepare an absorption-casting income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 280,000 units are produced. Units produced Units sold (b) Sales Less V Gross profit Less Net Income Cost of goods sold BLOSSOMMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing Selling and administrative expenses eTextbook and Media 280,000 -280000 -2240000 For the Year Ended 2022 Variable Costing -1260000 BLOSSOMMOTORS DIVISION Income Statement -980000 -151100 -828900 $ 180,000 990 101 Prepare a variable-costing income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 280,000 units are produced. Attempts: 2 of 2 used

Prepare an absorption-casting income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 280,000 units are produced. Units produced Units sold (b) Sales Less V Gross profit Less Net Income Cost of goods sold BLOSSOMMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing Selling and administrative expenses eTextbook and Media 280,000 -280000 -2240000 For the Year Ended 2022 Variable Costing -1260000 BLOSSOMMOTORS DIVISION Income Statement -980000 -151100 -828900 $ 180,000 990 101 Prepare a variable-costing income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 280,000 units are produced. Attempts: 2 of 2 used

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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Blossom Motors is a division of Blossom Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 180,000 units for $8.00 per unit. Donna Clark is the division manager. She is considering producing either 180,000 or 280,000 units during the period. Other information is as follows: Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 180,000 units Based on 280,000 units Manufacturing cost per unit Based on 180,000 units (a) Based on 280,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) - Your answer is partially correct. Units produced Units sold (b) Sales Less Prepare an absorption-costing income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 280,000 units are produced. Gross profit Less V Division Information for 2022 v Net Income Units sold eTextbook and Media Units produced Cost of goods sold 0 180,000 $8.00 $2.70 $504,000 $2.80 per unit ($504,000+ 180,000) $1.80 per unit ($504,000+ 280,000) $5.50 per unit ($2.70 variable + $2.80 fixed) $4.50 per unit ($2.70 variable + $1.80 fixed) $0.50 per unit $11,100 BLOSSOMMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing V Selling and administrative expenses V 280,000 $ -280000 -2240000 -1260000 BLOSSOMMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing -980000 -151100 -8.28900 $ Prepare a variable-costing income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 280,000 units are produced. 280,000 180,000 990 101 Attempts: 2 of 2 used 180)
Transcribed Image Text:Blossom Motors is a division of Blossom Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 180,000 units for $8.00 per unit. Donna Clark is the division manager. She is considering producing either 180,000 or 280,000 units during the period. Other information is as follows: Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 180,000 units Based on 280,000 units Manufacturing cost per unit Based on 180,000 units (a) Based on 280,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) - Your answer is partially correct. Units produced Units sold (b) Sales Less Prepare an absorption-costing income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 280,000 units are produced. Gross profit Less V Division Information for 2022 v Net Income Units sold eTextbook and Media Units produced Cost of goods sold 0 180,000 $8.00 $2.70 $504,000 $2.80 per unit ($504,000+ 180,000) $1.80 per unit ($504,000+ 280,000) $5.50 per unit ($2.70 variable + $2.80 fixed) $4.50 per unit ($2.70 variable + $1.80 fixed) $0.50 per unit $11,100 BLOSSOMMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing V Selling and administrative expenses V 280,000 $ -280000 -2240000 -1260000 BLOSSOMMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing -980000 -151100 -8.28900 $ Prepare a variable-costing income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 280,000 units are produced. 280,000 180,000 990 101 Attempts: 2 of 2 used 180)
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