Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it preparesthe income statement under absorption costing for external reporting. For its first month of operations, 400bikes were produced and 240 were sold. Income statement information under variable costing follows.Sales (240 × $1,700)Variable cost of goods sold (240 × $625)Variable selling and administrative expenses (240 × $65)Contribution marginFixed overheadFixed selling and administrative expensesIncomePrepare the company's income statement under absorption costing.HAYEK BIKESIncome Statement (Absorption Costing)Contribution marginGross profitIncomeLossSalesSelling and administrative evnenses$ 408,000150,00015,600242,40076,00075,000$ 91,400 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it preparesthe income statement under absorption costing for external reporting. For its first month of operations, 400bikes were produced and 240 were sold. Income statement information under variable costing follows.Sales (240 × $1,700)Variable cost of goods sold (240 × $625)Variable selling and administrative expenses (240 × $65)Contribution marginFixed overheadFixed selling and administrative expensesIncomePrepare the company's income statement under absorption costing.Gross profitIncomeHAYEK BIKESIncome Statement (Absorption Costing)LossSalesSelling and administrative expenses$ 408,000150,00015,600242,40076,00075,000$ 91,400

Name: Hayek Bikes prepares the income statement under variable costing for
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Description: Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it preparesthe income statement under absorption costing for external reporting. For its first month of operations, 400bikes were produced and 240 were

The classic net income, also known as the absorption costing net income, is calculated using…

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Sales (240 × $1,700) Variable cost of goods sold (240 × $625) Variable selling and administrative expenses (240 × $65) Contribution margin. Fixed overhead Fixed selling and administrative expenses Income Prepare the company's income statement under absorption costing. HAYEK BIKES Income Statement (Absorption Costing) Contribution margin Gross profit Income $ 408,000 150,000 15,600 242,400 76,000 75,000 $ 91,400

Sales (240 × $1,700) Variable cost of goods sold (240 × $625) Variable selling and administrative expenses (240 × $65) Contribution margin. Fixed overhead Fixed selling and administrative expenses Income Prepare the company's income statement under absorption costing. HAYEK BIKES Income Statement (Absorption Costing) Contribution margin Gross profit Income $ 408,000 150,000 15,600 242,400 76,000 75,000 $ 91,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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