QS 21-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $25.80 $ 2.80 Required: Prepare an income statement under absorption costing. ACES INC. Absorption Costing Income Statement Sales 24 558,600 Less: Cost of goods sold Variable production costs 147.060 Fixed overhead costs Cost of goods sold 147,060
QS 21-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $25.80 $ 2.80 Required: Prepare an income statement under absorption costing. ACES INC. Absorption Costing Income Statement Sales 24 558,600 Less: Cost of goods sold Variable production costs 147.060 Fixed overhead costs Cost of goods sold 147,060
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![QS 21-20B Absorption costing income statement LO P5
Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each
racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The
company also reports the following per unit costs for the year:
Variable production costs
Variable selling and administrative expenses
$25.80
$ 2.80
Required:
Prepare an income statement under absorption costing.
ACES INC.
Absorption Costing Income Statenent
Sales
$4
558 600
Less: Cost of goods sold
Variable production costs
147.060
Fixed overhead costs
Cost of goods sold
147.060
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42fd2894-08da-4aeb-b7bc-33923f0e8439%2Fa9ea18f9-53c5-42b8-80c9-9b437bd2f196%2Fbp47sf8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QS 21-20B Absorption costing income statement LO P5
Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each
racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The
company also reports the following per unit costs for the year:
Variable production costs
Variable selling and administrative expenses
$25.80
$ 2.80
Required:
Prepare an income statement under absorption costing.
ACES INC.
Absorption Costing Income Statenent
Sales
$4
558 600
Less: Cost of goods sold
Variable production costs
147.060
Fixed overhead costs
Cost of goods sold
147.060
%24
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