Homework Help is Here – Start Your Trial Now!
Business
Accounting
statements and Farm Performance: variable and Absorption Costing ison Company had the following operating data for its first two years of operations riable costs per unit: Direct materials Direct labor Variable overhead 4,00 $2.90 1.50 xed costs per year: Overhead 180,000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. llison uses an actual costing system for product costing. equired: Prepare income statements for both years using absorption costing. If an amount is zero, enter "0" Jellison Company Absorption Costing Income Statement For Years 1 and 2 Sales Less: Cost of goods sold Gross profit Year 1 960,000 Year 2 1000,000

statements and Farm Performance: variable and Absorption Costing ison Company had the following operating data for its first two years of operations riable costs per unit: Direct materials Direct labor Variable overhead 4,00 $2.90 1.50 xed costs per year: Overhead 180,000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. llison uses an actual costing system for product costing. equired: Prepare income statements for both years using absorption costing. If an amount is zero, enter "0" Jellison Company Absorption Costing Income Statement For Years 1 and 2 Sales Less: Cost of goods sold Gross profit Year 1 960,000 Year 2 1000,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

Income Statements and Firm Performance: Variable and Absorption Costing Jellison Company had the following operating data for its first two years of operations: Variable costs per unit: Direct materials Direct labor Variable overhead Fixed costs per year: 4.00 $2.90 1.50 Overhead Selling and administrative Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 50,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing. 180,000 70,350 Required: 1. Prepare income statements for both years using absorption costing. If an amount is zero, enter"0" Jellison Company Absorption Costing Income Statement For Years 1 and 2 Sales Less: Cost of goods sold i Gross profit Less: Fixed selling and administrative expenses Year 1 960,000 Year 2 1,000,000 Previous
Transcribed Image Text:Income Statements and Firm Performance: Variable and Absorption Costing Jellison Company had the following operating data for its first two years of operations: Variable costs per unit: Direct materials Direct labor Variable overhead Fixed costs per year: 4.00 $2.90 1.50 Overhead Selling and administrative Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 50,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing. 180,000 70,350 Required: 1. Prepare income statements for both years using absorption costing. If an amount is zero, enter"0" Jellison Company Absorption Costing Income Statement For Years 1 and 2 Sales Less: Cost of goods sold i Gross profit Less: Fixed selling and administrative expenses Year 1 960,000 Year 2 1,000,000 Previous
1. Prepare income statements for both years using absorption costing. If an amount is zero, enter "0". Jellison Company Absorption Costing Income Statement For Years 1 and 2 Sales Less: Cost of goods sold Gross profit Less: Fixed selling and administrative expenses Operating income Cost of goods sold: Beginning inventory Cost of goods manufactured Goods available for sale Less: Ending inventory Cost of goods sold Year 1 $ Less: 960,000 Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? Declined 2. Prepare income statements for both years using variable costing. If an amount is zero, enter "0". Jellison Company Sales Less: Variable cost of goods manufactured Contribution margin Year 2 Less: Ending inventory Cost of goods sold 1,080,000 Jellison Company Variable Costing Income Statement For Years 1 and 2 Operating income Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Goods available for sale Fixed overhead Fixed selling and administrative expenses Year 1 $ Year 2 $ Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? Improved 3. Which method do you think most accurately measures firm performance? Variable Costing
Transcribed Image Text:1. Prepare income statements for both years using absorption costing. If an amount is zero, enter "0". Jellison Company Absorption Costing Income Statement For Years 1 and 2 Sales Less: Cost of goods sold Gross profit Less: Fixed selling and administrative expenses Operating income Cost of goods sold: Beginning inventory Cost of goods manufactured Goods available for sale Less: Ending inventory Cost of goods sold Year 1 $ Less: 960,000 Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? Declined 2. Prepare income statements for both years using variable costing. If an amount is zero, enter "0". Jellison Company Sales Less: Variable cost of goods manufactured Contribution margin Year 2 Less: Ending inventory Cost of goods sold 1,080,000 Jellison Company Variable Costing Income Statement For Years 1 and 2 Operating income Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Goods available for sale Fixed overhead Fixed selling and administrative expenses Year 1 $ Year 2 $ Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? Improved 3. Which method do you think most accurately measures firm performance? Variable Costing
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS