Rey Company's only product sells for $230 per unit. Data for its first year of operations follow. $ 34 per unit $ 42 per unit $10 per unit $ 318,000 per year $ 32 per unit $ 228,000 per year 26,500 units 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 variable costing.
Rey Company's only product sells for $230 per unit. Data for its first year of operations follow. $ 34 per unit $ 42 per unit $10 per unit $ 318,000 per year $ 32 per unit $ 228,000 per year 26,500 units 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 variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rey Company's only product sells for $230 per unit. Data for its first year of operations follow.
$ 34 per unit
$ 42 per unit
$ 10 per unit
$318,000 per year
$ 32 per unit
$228,000 per year
26,500 units
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 variable costing.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare an income statement for the year using absorption costing.
REY COMPANY
Income Statement (Absorption Costing)
< Required 1
Required 2 >
Transcribed Image Text:Required 1 Required 2
Prepare an income statement for the year using variable costing.
REY COMPANY
Income Statement (Variable Costing)
Income
< Required 1
Required 2 >
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