Sales Direct materials Direct labor overhead-variable Manufacturing Manufacturing overhead-fixed Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $ 1,800,000 430,000 360,000 380,000 280,000 70,000 65,000 20,000 60,000

Sales Direct materials Direct labor overhead-variable Manufacturing Manufacturing overhead-fixed Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $ 1,800,000 430,000 360,000 380,000 280,000 70,000 65,000 20,000 60,000

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Using the information provided below from Ben Company prepare two income
statements: A normal GAAP Income Statement A CVP Income Statement These
Income Statements should be done in good form and in Excel. Include formulas.

Sales
Direct materials
Direct labor
overhead-variable
Manufacturing
Manufacturing overhead-fixed
Selling expenses-variable
Selling expenses-fixed
Administrative
Administrative expenses-fixed
expenses-variable
$ 1,800,000
430,000
360,000
380,000
280,000
70,000
65,000
20,000
60,000

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