Whitman CompanyIncome StatementSales (38,000 units $41.60 per unit)Cost of goods sold (38,000 units x $23 per unit)Gross marginSelling and administrative expenses$ 1,580,800874,000706,800475,000Net operating income$ 231,800The company's selling and administrative expenses consist of $285,000 per year in fixed expenses and $5 per unit sold in variabexpenses. The $23 unit product cost given above is computed as follows:Direct materialsDirect laborVariable manufacturing overhead$ 1144Fixed manufacturing overhead ($216,000 + 54,000 units)Absorption costing unit product cost4$ 23Required:1. Redo the company's Income statement in the contribution format using variable costing.2. Reconcile any difference between the net operating Income on your variable costing Income statement and the net operatingIncome on the absorption costing Income statement above.Complete this question by entering your answers in the tabs below.Required 1Required 2Redo the company's income statement in the contribution format using variable costing.Whitman CompanyVariable Costing Income Statement

Name: Whitman CompanyIncome StatementSales (38,000 units $41.60 per unit)Co
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Description: Whitman CompanyIncome StatementSales (38,000 units $41.60 per unit)Cost of goods sold (38,000 units x $23 per unit)Gross marginSelling and administrative expenses$ 1,580,800874,000706,800475,000Net operating income$ 231,800The company's selling and

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Whitman Company Income Statement Sales (38,000 units $41.60 per unit) Cost of goods sold (38,000 units x $23 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,580,800 874,000 706,800 475,000 $ 231,800 The company's selling and administrative expenses consist of $285,000 per year in fixed expenses and $5 pe expenses. The $23 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead $ 11 4 4 Fixed manufacturing overhead ($216,000 + 54,000 units) 4 $ 23 Absorption costing unit product cost Required: 1. Redo the company's Income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating Income on your variable costing Income statement and Income on the absorption costing Income statement above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement

Whitman Company Income Statement Sales (38,000 units $41.60 per unit) Cost of goods sold (38,000 units x $23 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,580,800 874,000 706,800 475,000 $ 231,800 The company's selling and administrative expenses consist of $285,000 per year in fixed expenses and $5 pe expenses. The $23 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead $ 11 4 4 Fixed manufacturing overhead ($216,000 + 54,000 units) 4 $ 23 Absorption costing unit product cost Required: 1. Redo the company's Income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating Income on your variable costing Income statement and Income on the absorption costing Income statement above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement

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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