Succulent juice Company manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations. The following data relates to this first year of operations. 80,000 70,000 $3.00 per gallon $1.45 per gallon Number of Gallons Produced Number of Gallons sold Sales Price Unit Product Cost (variable costing) Contribution Margin Total Fixed Manufacturing Overhead Total fixed Selling & Administrative Variable Selling and Administrative Costs Inventory value under absorption costing $84,000 ? $25,000 ? $29,500 Prepare an Income Statement for Succulent using the Absorption Costing Method. (Hints: How many units were in inventory? What was the cost per unit? Why is the CM only $84,000? ). 3.1 Sales COGS Gross Margin SG&A Net Income 3.2 Explain in one or two sentences, the key difference between the net income under Absorption and the net income under Variable costing. Determine the variable costing net income. Do not prepare a variable costing income statement.

Succulent juice Company manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations. The following data relates to this first year of operations. 80,000 70,000 $3.00 per gallon $1.45 per gallon Number of Gallons Produced Number of Gallons sold Sales Price Unit Product Cost (variable costing) Contribution Margin Total Fixed Manufacturing Overhead Total fixed Selling & Administrative Variable Selling and Administrative Costs Inventory value under absorption costing $84,000 ? $25,000 ? $29,500 Prepare an Income Statement for Succulent using the Absorption Costing Method. (Hints: How many units were in inventory? What was the cost per unit? Why is the CM only $84,000? ). 3.1 Sales COGS Gross Margin SG&A Net Income 3.2 Explain in one or two sentences, the key difference between the net income under Absorption and the net income under Variable costing. Determine the variable costing net income. Do not prepare a variable costing income statement.

Name: Succulent juice Company manufactures and sells premium tomato juice b
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Description: Succulent juice Company manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations.The following data relates to this first year of operations.Number of Gallons Produced80,000Number of Gallons sol

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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