Prepare an income statement (through income before income tax) for presentation to management, using the following data from the records of Greenway Manufacturing Company for November of the current year:Administrative expenses$73,500Cost of goods sold (at standard)470,000Direct materials quantity variance—favorable1,200Direct materials price variance—favorable2,400Direct labor time variance—unfavorable900Direct labor rate variance—favorable500Factory overhead volume variance—unfavorable10,000Factory overhead controllable variance—favorable1,500Sales950,000Selling expenses165,800 If an amount box does not require an entry, leave it blank. Greenway Manufacturing CompanyIncome StatementFor Month Ended November 30Sales $fill in the blank 1Cost of goods sold - at standard fill in the blank 2Gross profit - at standard $fill in the blank 3Less variances from standard cost: FavorableUnfavorable Direct materials price$fill in the blank 4$fill in the blank 5 Direct materials quantityfill in the blank 6fill in the blank 7 Direct labor ratefill in the blank 8fill in the blank 9 Direct labor timefill in the blank 10fill in the blank 11 Factory overhead controllablefill in the blank 12fill in the blank 13 Factory overhead volumefill in the blank 14fill in the blank 15 Net Variance from Standard Cost fill in the blank 16Gross profit $fill in the blank 17Operating expenses: Selling expenses $fill in the blank 18 Administrative expenses fill in the blank 19 Total Selling & Administrative Expenses fill in the blank 20Income before income tax $fill in the blank 21

The income statement of an organization shows all incomes or revenue and expenses of an organization at the end of an accounting period. It shows the net income or loss for the business. This is one of the financial statements of the business, which is used for analyzing the profitability of the business. Basically, the income statement is the financial statement that tells about the income earned or loss incurred by an entity from its operations.Excel formula: Result:

Answered: Prepare an income statement (through…

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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Prepare an income statement (through income before income tax) for presentation to management, using the following data from the records of Greenway Manufacturing Company for November of the current year:

Administrative expenses	$73,500
Cost of goods sold (at standard)	470,000
Direct materials quantity variance—favorable	1,200
Direct materials price variance—favorable	2,400
Direct labor time variance—unfavorable	900
Direct labor rate variance—favorable	500
Factory overhead volume variance—unfavorable	10,000
Factory overhead controllable variance—favorable	1,500
Sales	950,000
Selling expenses	165,800

If an amount box does not require an entry, leave it blank.

Greenway Manufacturing Company
Income Statement
For Month Ended November 30
Sales			$fill in the blank 1
Cost of goods sold - at standard			fill in the blank 2
Gross profit - at standard			$fill in the blank 3
Less variances from standard cost:
	Favorable	Unfavorable
Direct materials price	$fill in the blank 4	$fill in the blank 5
Direct materials quantity	fill in the blank 6	fill in the blank 7
Direct labor rate	fill in the blank 8	fill in the blank 9
Direct labor time	fill in the blank 10	fill in the blank 11
Factory overhead controllable	fill in the blank 12	fill in the blank 13
Factory overhead volume	fill in the blank 14	fill in the blank 15
Net Variance from Standard Cost			fill in the blank 16
Gross profit			$fill in the blank 17
Operating expenses:
Selling expenses		$fill in the blank 18
Administrative expenses		fill in the blank 19
Total Selling & Administrative Expenses			fill in the blank 20
Income before income tax			$fill in the blank 21

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