Homework Help is Here – Start Your Trial Now!
Business
Accounting
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units x $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (20,000 × $25) Cost of goods sold Gross margin Selling and administrative expenses Net income Direct materials Direct labor Variable overhead Fixed overhead ($700,000/100,000 units) TREZ Company Variable Costing Income Statement $ Net income (loss) $ 4 11 $ 3 $ 7 $ per unit per unit per unit per unit Required: 1. Prepare an income statement for the company under variable costing. Additional Information Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit is computed as follows. 0 2,500,000 2,500,000 500,000 $ $ 3,600,000 2,000,000 1,600,000 610,000 990,000

Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units x $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (20,000 × $25) Cost of goods sold Gross margin Selling and administrative expenses Net income Direct materials Direct labor Variable overhead Fixed overhead ($700,000/100,000 units) TREZ Company Variable Costing Income Statement $ Net income (loss) $ 4 11 $ 3 $ 7 $ per unit per unit per unit per unit Required: 1. Prepare an income statement for the company under variable costing. Additional Information Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit is computed as follows. 0 2,500,000 2,500,000 500,000 $ $ 3,600,000 2,000,000 1,600,000 610,000 990,000

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 

Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units x $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (20,000 × $25) Cost of goods sold Gross margin Selling and administrative expenses Net income Direct materials Direct labor Variable overhead Fixed overhead ($700,000/100,000 units) TREZ Company Variable Costing Income Statement $ 4 $ 11 Net income (loss) $ 3 $ 7 $ per unit per unit per unit per unit Required: 1. Prepare an income statement for the company under variable costing. 0 2,500,000 2,500,000 500,000 Additional Information Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit is computed as follows. $ $ 3,600,000 2,000,000 1,600,000 610,000 990,000
Transcribed Image Text:Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units x $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (20,000 × $25) Cost of goods sold Gross margin Selling and administrative expenses Net income Direct materials Direct labor Variable overhead Fixed overhead ($700,000/100,000 units) TREZ Company Variable Costing Income Statement $ 4 $ 11 Net income (loss) $ 3 $ 7 $ per unit per unit per unit per unit Required: 1. Prepare an income statement for the company under variable costing. 0 2,500,000 2,500,000 500,000 Additional Information Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit is computed as follows. $ $ 3,600,000 2,000,000 1,600,000 610,000 990,000
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost estimation
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
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