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Prepare an absorption-costing income statement for the first month of operation. Sales Cost of goods sold Beginning inventory Add: Costs of goods manufactured Goods available for sale Less Ending inventory Gross margin SheridanProducts Income Statement-Absorption Costing For the first month of operations Operating income : Less # Selling and administrative expenses # 0 370000 370000 990000 217000 Assistance Used

Prepare an absorption-costing income statement for the first month of operation. Sales Cost of goods sold Beginning inventory Add: Costs of goods manufactured Goods available for sale Less Ending inventory Gross margin SheridanProducts Income Statement-Absorption Costing For the first month of operations Operating income : Less # Selling and administrative expenses # 0 370000 370000 990000 217000 Assistance Used

FINANCIAL ACCOUNTING
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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Sheridan Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable 0 units 10,000 9,000 $80,000 per unit per unit $25 per unit $3 $9 $190,000 $3 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement. Assuming the company uses absorption costing
Transcribed Image Text:Sheridan Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable 0 units 10,000 9,000 $80,000 per unit per unit $25 per unit $3 $9 $190,000 $3 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement. Assuming the company uses absorption costing
Prepare an absorption-costing income statement for the first month of operation. Sales Cost of goods sold Beginning inventory Add: Costs of goods manufactured Goods available for sale- Less Ending inventory Gross margin SheridanProducts Income Statement-Absorption Costing For the first month of operations Operating income : Less # Selling and administrative expenses # 0 370000 370000 990000 217000 Assistance Used
Transcribed Image Text:Prepare an absorption-costing income statement for the first month of operation. Sales Cost of goods sold Beginning inventory Add: Costs of goods manufactured Goods available for sale- Less Ending inventory Gross margin SheridanProducts Income Statement-Absorption Costing For the first month of operations Operating income : Less # Selling and administrative expenses # 0 370000 370000 990000 217000 Assistance Used
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