Prepare an income statement through gross profit for Venneman Company for the month ended March 31. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorabie variances. A colon () will automatically appear for you if it is required Instructions Venneman Company Venneman Company produces a product that requires 3.5 standard pounds per unit. The standard price is $5.10 per Income Statement Through Gross Profit pound. The company produced 14,000 units that required 48,000 pounds, which were purchased at $5.40 per pound. The (Label) product also requires 4 standard hours per unit at a standard hourly rate of $12 per hour. The 14,000 units required 58,000 hours at an hourly rate of $11.85 per hour. In addition, the standard variable overhead cost per unit is $0.80 per hour and the actual variable factory overhead was $46, 100. Finally, the standard fixed overhead cost per unit is S0.95 per hour at 55,000 hours, which is 100% of normal capacity. Assume that Venneman sold 14,000 units at $165 per unit. Required: Prepare an income statement through gross profit for Venneman Company for the month ended March 31. Unfavorable Favorable Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter all amounts as 6 (Label) positive numbers except favorable variances. Use a minus sign to indicate favorable variances. A colon () will automatically appear for you if it is required.
Prepare an income statement through gross profit for Venneman Company for the month ended March 31. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorabie variances. A colon () will automatically appear for you if it is required Instructions Venneman Company Venneman Company produces a product that requires 3.5 standard pounds per unit. The standard price is $5.10 per Income Statement Through Gross Profit pound. The company produced 14,000 units that required 48,000 pounds, which were purchased at $5.40 per pound. The (Label) product also requires 4 standard hours per unit at a standard hourly rate of $12 per hour. The 14,000 units required 58,000 hours at an hourly rate of $11.85 per hour. In addition, the standard variable overhead cost per unit is $0.80 per hour and the actual variable factory overhead was $46, 100. Finally, the standard fixed overhead cost per unit is S0.95 per hour at 55,000 hours, which is 100% of normal capacity. Assume that Venneman sold 14,000 units at $165 per unit. Required: Prepare an income statement through gross profit for Venneman Company for the month ended March 31. Unfavorable Favorable Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter all amounts as 6 (Label) positive numbers except favorable variances. Use a minus sign to indicate favorable variances. A colon () will automatically appear for you if it is required.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Income Statement
Prepare an income statement through gross profit for Venneman Company for the month ended March 31. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter all amounts as positive numbers except favorable variances. Use a minus sign to
indicate favorable variances. A colon (:) will automatically appear for you if it is required.
Instructions
Venneman Company
Venneman Company produces a product that requires 3.5 standard pounds per unit. The standard price is $5.10 per
Income Statement Through Gross Profit
pound. The company produced 14,000 units that required 48,000 pounds, which were purchased at $5.40 per pound. The
(Label)
product also requires 4 standard hours per unit at a standard hourly rate of $12 per hour. The 14,000 units required
58,000 hours at an hourly rate of $11.85 per hour. In addition, the standard variable overhead cost per unit is $0.80 per
1
hour and the actual variable factory overhead was $46, 100. Finally, the standard fixed overhead cost per unit is $0.95 per
2
hour at 55,000 hours, which is 100% of normal capacity. Assume that Venneman sold 14,000 units at $165 per unit.
Required:
Prepare an income statement through gross profit for Venneman Company for the month ended March 31.
Unfavorable
Favorable
5
Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter all amounts as
6 (Label)
positive numbers except favorable variances. Use a minus sign to indicate favorable variances. A colon (:) will
automatically appear for you if it is required.
8
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