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Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 12,800 cases in July. The sales prices was $31.00, variable costs were $15.00 per case, comprising $11.00 for manufacturing costs and $4.00 for selling and administrative expenses. Total fixed costs were $70,700, which were made up of manufacturing costs of $44,900 and selling and administrative cost of $25,800. The company had no beginning Finished Goods Inventory. 1. Prepare the July income statement using absorption costing.

Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 12,800 cases in July. The sales prices was $31.00, variable costs were $15.00 per case, comprising $11.00 for manufacturing costs and $4.00 for selling and administrative expenses. Total fixed costs were $70,700, which were made up of manufacturing costs of $44,900 and selling and administrative cost of $25,800. The company had no beginning Finished Goods Inventory. 1. Prepare the July income statement using absorption costing.

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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Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 12,800 cases in July. The sales prices was $31.00, variable costs were $15.00 per case, comprising $11.00 for manufacturing costs and $4.00 for selling and administrative expenses. Total fixed costs were $70,700, which were made up of manufacturing costs of $44,900 and selling and administrative cost of $25,800. The company had no beginning Finished Goods Inventory.

1. Prepare the July income statement using absorption costing.

 

Cost of Goods Sold Selling and Administrative Costs: Revive Me Sports Drink Income Statement For Month Ending July 31, 20XX 2. Prepare the July income statement using variable costing. Variable Costs: Fixed Costs: Revive Me Sports Drink Contribution Margin Income Statement For Month Ending July 31, 20XX
Transcribed Image Text:Cost of Goods Sold Selling and Administrative Costs: Revive Me Sports Drink Income Statement For Month Ending July 31, 20XX 2. Prepare the July income statement using variable costing. Variable Costs: Fixed Costs: Revive Me Sports Drink Contribution Margin Income Statement For Month Ending July 31, 20XX
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