Homework Help is Here – Start Your Trial Now!
Business
Accounting
Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the pr year. These data summarize the current and prior year operations: Sales (000s) Production (000s) Production cost Factory-variable (per unit) -fixed (000s) Marketing-variable (per unit) Administrative-fixed (000s) Prior Year 2,900 units 4,200 units $ 0.60 $ 2,100 $ 0.40 $ 500 Required: 1. Prepare an income statement for each year based on full costing. Current Year 5,500 units 4,200 units $ 0.60 $ 2,100 $ 0.40 $ 500 2. Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.

Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the pr year. These data summarize the current and prior year operations: Sales (000s) Production (000s) Production cost Factory-variable (per unit) -fixed (000s) Marketing-variable (per unit) Administrative-fixed (000s) Prior Year 2,900 units 4,200 units $ 0.60 $ 2,100 $ 0.40 $ 500 Required: 1. Prepare an income statement for each year based on full costing. Current Year 5,500 units 4,200 units $ 0.60 $ 2,100 $ 0.40 $ 500 2. Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.

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 

Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations: Sales (000s) Production (000s) Production cost Factory-variable (per unit) -fixed (000s) Marketing-variable (per unit) Administrative-fixed (000s) Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Required: 1. Prepare an income statement for each year based on full costing. 2. Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method. Less: Cost of goods sold Available for sale Prior Year 2,900 units 4,200 units Cost of goods sold $ 0.60 $ 2,100 $ 0.40 $ 500 Prepare an income statement for each year based on full costing. (Enter your answers in thousands of dollars.) YALE COMPANY Full Costing Income Statement Gross margin Less: Selling and administrative costs Operating income Current Year 5,500 units 4,200 units $ 0.60 $ 2,100 $0.40 $ 500 Prior Year Current Year
Transcribed Image Text:Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations: Sales (000s) Production (000s) Production cost Factory-variable (per unit) -fixed (000s) Marketing-variable (per unit) Administrative-fixed (000s) Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Required: 1. Prepare an income statement for each year based on full costing. 2. Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method. Less: Cost of goods sold Available for sale Prior Year 2,900 units 4,200 units Cost of goods sold $ 0.60 $ 2,100 $ 0.40 $ 500 Prepare an income statement for each year based on full costing. (Enter your answers in thousands of dollars.) YALE COMPANY Full Costing Income Statement Gross margin Less: Selling and administrative costs Operating income Current Year 5,500 units 4,200 units $ 0.60 $ 2,100 $0.40 $ 500 Prior Year Current Year
Required 1 Required 2 Required 3 Prepare an income statement for each year based on variable costing. (Enter your answers in thousands of dollars.) YALE COMPANY Variable Costing Income Statement Prior Year Less: Cost of goods sold Available for sale Cost of goods sold Contribution margin Less: Selling and administrative costs Operating income Required 1 Required 2 Required 3 < Required 1 Complete this question by entering your answers in the tabs below. YALE COMPANY Reconciling Difference in Operating Income Between Full and Variable Costing Prior Year Change in inventory in units x fixed overhead rate Difference in operating income Required 3 > Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method. (Negative amounts should be indicated by a minus sign. Round your "Fixed overhead rate" answers to 2 decimal places. Enter your answers in thousands of dollars.) < Required 2 Current Year Current Year Required 3 >
Transcribed Image Text:Required 1 Required 2 Required 3 Prepare an income statement for each year based on variable costing. (Enter your answers in thousands of dollars.) YALE COMPANY Variable Costing Income Statement Prior Year Less: Cost of goods sold Available for sale Cost of goods sold Contribution margin Less: Selling and administrative costs Operating income Required 1 Required 2 Required 3 < Required 1 Complete this question by entering your answers in the tabs below. YALE COMPANY Reconciling Difference in Operating Income Between Full and Variable Costing Prior Year Change in inventory in units x fixed overhead rate Difference in operating income Required 3 > Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method. (Negative amounts should be indicated by a minus sign. Round your "Fixed overhead rate" answers to 2 decimal places. Enter your answers in thousands of dollars.) < Required 2 Current Year Current Year Required 3 >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
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.
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