Preparing a standard cost income statementUse the following information to prepare a standard cost income statement for Mitchell Company. for 2018. Cost of Goods Sold (at standard)Sales Revenue (at standard)Direct Materials Cost VarianceDirect Materials Efficiency VarianceDirect Labor Cost VarianceFixed Overhead Cost VarianceDirect Labor Efficiency VarianceVariable Overhead Efficiency VarianceFixed Overhead Volume VarianceSelling and Administrative ExpensesVariable Overhead Cost Variance$ 19,500 F3,300 U12,500 F71,000$ 366,000570,0007,200 U2,700 U42,000 U1,700 F2,100 F

Income Statement: Income Statement is financial statements that measure a company's performance…

Answered: Cost of Goods Sold (at standard) Sales…

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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Preparing a standard cost income statement

Use the following information to prepare a standard cost income statement for Mitchell Company. for 2018.

Cost of Goods Sold (at standard)
Sales Revenue (at standard)
Direct Materials Cost Variance
Direct Materials Efficiency Variance
Direct Labor Cost Variance
Fixed Overhead Cost Variance
Direct Labor Efficiency Variance
Variable Overhead Efficiency Variance
Fixed Overhead Volume Variance
Selling and Administrative Expenses
Variable Overhead Cost Variance
$ 19,500 F
3,300 U
12,500 F
71,000
$ 366,000
570,000
7,200 U
2,700 U
42,000 U
1,700 F
2,100 F

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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