Rey Company's only product sells for $228 per unit. Data for Its first year of operations follow.$ 32 per unit$ 40 per unit$ 12 per unit$385,000 per year$ 30 per unit$ 224,000 per year27,500 unitsDirect materialsDirect laborVariable overheadFixed overheadVariable selling and administrative expensesFixed selling and administrative expensesUnits produced and sold1. Prepare an Income statement for the year using absorption costing2. Prepare an income statement for the year using varlable costing.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare an income statement for the year using absorption costing,REY COMPANYIncome Statement (Absorption Costing)SalesCost of goods soldGross profitSelling and administrative expensesIncomeRequired 1Required 2SalesLess Variable expenses* Answer is not complete.IncomePrepare an income statement for the year using variable costing.Direct materialsDirect laborVariable cost of goods soldGross profitLess: Fixed expensesFixed selling and administrative expensesFixed overhead00REY COMPANYIncome Statement (Variable Costing)X333#80

Rey Company's only product sells for $228 per unit. Data for its first year of operations follow. $ 32 per unit $ 40 per unit $ 12 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced and sold 1. Prepare an Income statement for the year using absorption costing 2. Prepare an income statement for the year using varlable costing. Required 1 Complete this question by entering your answers in the tabs below. Required 2 REY COMPANY Income Statement (Absorption Costing) Prepare an income statement for the year using absorption costing, Sales Cost of goods sold Gross profit Selling and administrative expenses Income Required 1 Required 2 $ 385,000 per year $ 30 per unit $ 224,000 per year 27,500 units Sales Less: Variable expenses Answer is not complete. S Direct materials Direct labor 0 Prepare an income statement for the year using variable costing. REY COMPANY Income Statement (Variable Costing) #8

Rey Company's only product sells for $228 per unit. Data for its first year of operations follow. $ 32 per unit $ 40 per unit $ 12 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced and sold 1. Prepare an Income statement for the year using absorption costing 2. Prepare an income statement for the year using varlable costing. Required 1 Complete this question by entering your answers in the tabs below. Required 2 REY COMPANY Income Statement (Absorption Costing) Prepare an income statement for the year using absorption costing, Sales Cost of goods sold Gross profit Selling and administrative expenses Income Required 1 Required 2 $ 385,000 per year $ 30 per unit $ 224,000 per year 27,500 units Sales Less: Variable expenses Answer is not complete. S Direct materials Direct labor 0 Prepare an income statement for the year using variable costing. REY COMPANY Income Statement (Variable Costing) #8

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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The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($224,000/2,800 units) Total variable selling expenses ($11 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year. Full Absorption Costing 2,800 2,400 340 60 45 13 80 Variable Costing $ 26,400 $ 60,000
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