Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 11,800 cases in July. The sales prices was $30.00, variable costs were $12.00 per case, comprising $10.00 for manufacturing costs and $2.00 for selling and administrative expenses. Total fixed costs were $70,600, which were made up of manufacturing costs of $45,700 and selling and administrative cost of $24,900. The company had no beginning Finished Goods Inventory. 1. Prepare the July income statement using absorption costing. Revive Me Sports Drink
Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 11,800 cases in July. The sales prices was $30.00, variable costs were $12.00 per case, comprising $10.00 for manufacturing costs and $2.00 for selling and administrative expenses. Total fixed costs were $70,600, which were made up of manufacturing costs of $45,700 and selling and administrative cost of $24,900. The company had no beginning Finished Goods Inventory. 1. Prepare the July income statement using absorption costing. Revive Me Sports Drink
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 11,800 cases in
July. The sales prices was $30.00, variable costs were $12.00 per case, comprising $10.00 for
manufacturing costs and $2.00 for selling and administrative expenses. Total fixed costs were
$70,600, which were made up of manufacturing costs of $45,700 and selling and administrative
cost of $24,900. The company had no beginning Finished Goods Inventory.
1. Prepare the July income statement using absorption costing.
Revive Me Sports Drink
Income Statement
For Month Ending July 31, 20XX
Cost of Goods Sold
Selling and Administrative Costs:
2. Prepare the July income statement using variable costing.
Revive Me Sports Drink
Contribution Margin Income Statement
For Month Ending July 31, 20XX
Variable Costs:
Fixed Costs:
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