Variable and Absorption Costing-Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc. Product Income Statements-Absorption Costing For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes $5,800,000 $6,900,000 $4,200,000 Revenues Cost of goods sold (3,016,000) (3,381,000) (2,814,000) Gross profit $2,784,000 $3,519,000 $1,386,000 Selling and administrative expenses (2,436,000) (2,484,000) (2,142,000) $1,035,000 $(756,000) Operating income $348,000 In addition, you have determined the following information with respect to allocated fixed costs: Cross Golf Running Training Shoes Shoes Shoes Fixed costs: Cost of goods sold $928,000 $897,000 $798,000 Selling and administrative expenses 828,000 696,000 588,000 These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign. Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Total fixed costs Operating income (loss)
Variable and Absorption Costing-Three Products Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc. Product Income Statements-Absorption Costing For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes $5,800,000 $6,900,000 $4,200,000 Revenues Cost of goods sold (3,016,000) (3,381,000) (2,814,000) Gross profit $2,784,000 $3,519,000 $1,386,000 Selling and administrative expenses (2,436,000) (2,484,000) (2,142,000) $1,035,000 $(756,000) Operating income $348,000 In addition, you have determined the following information with respect to allocated fixed costs: Cross Golf Running Training Shoes Shoes Shoes Fixed costs: Cost of goods sold $928,000 $897,000 $798,000 Selling and administrative expenses 828,000 696,000 588,000 These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign. Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Fixed costs: Total fixed costs Operating income (loss)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Variable and Absorption Costing-Three Products
Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three
shoes are as follows:
Winslow Inc.
Product Income Statements-Absorption Costing
For the Year Ended December 31, 20Y1
Cross Training Shoes
Golf Shoes
Running Shoes
$5,800,000
$6,900,000
$4,200,000
Revenues
Cost of goods sold
(3,016,000)
(3,381,000)
(2,814,000)
Gross profit
$2,784,000
$3,519,000
$1,386,000
Selling and administrative expenses
(2,436,000)
(2,484,000)
(2,142,000)
$1,035,000
$(756,000)
Operating income
$348,000
In addition, you have determined the following information with respect to allocated fixed costs:
Cross
Golf
Running
Training
Shoes
Shoes
Shoes
Fixed costs:
Cost of goods sold
$928,000 $897,000 $798,000
Selling and administrative expenses
828,000
696,000
588,000
These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have
Transcribed Image Text:b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign.
Winslow Inc.
Variable Costing Income Statements-Three Product Lines
For the Year Ended December 31, 20Y1
Cross Training Shoes
Golf Shoes
Running Shoes
Fixed costs:
Total fixed costs
Operating income (loss)
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