The manufacturing and selling data for Abracadabra Inc. for the year 2018 is given below: - - - - Selling price …………...…………………….. $33 /unit - - - Finished goods (beginning).............. 10200 units - - - Production ……………………………………. 86780 units - - - Sales …………………………………………….. 79800 units Variable costs: - - - Manufacturing ………….………………….. $7 /unit - - - Selling and administrative …………….. $4 /unit Fixed costs: - - - Manufacturing ……..………………………… $312000 /year - - - Selling and administrative ……………… $294000 /year Assuming costs per unit were consistent over the years in both the costing methods, prepare the followings i
The manufacturing and selling data for Abracadabra Inc. for the year 2018 is given below: -
- - - Selling price …………...…………………….. $33 /unit
- - - Finished goods (beginning).............. 10200 units
- - - Production ……………………………………. 86780 units
- - - Sales …………………………………………….. 79800 units
Variable costs:
- - - Manufacturing ………….………………….. $7 /unit
- - - Selling and administrative …………….. $4 /unit
Fixed costs:
- - - Manufacturing ……..………………………… $312000 /year
- - - Selling and administrative ……………… $294000 /year
Assuming costs per unit were consistent over the years in both the costing methods, prepare the followings in the box below:
(a) Income statement using absorption costing.
(b) Income statement using variable costing.
(c) Reconciliation of net operating incomes
Step by step
Solved in 4 steps with 3 images
