The records of Anderjak Corporation contain the following information for the month of January: The company has no beginning inventory. REQUIREMENT You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

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Answer 1

Textbook Question

Chapter 19, Problem 1R

The records of Anderjak Corporation contain the following information for the month of January:

Chapter 19, Problem 1R, The records of Anderjak Corporation contain the following information for the month of January:

The

The company has no beginning inventory.

REQUIREMENT

You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

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Answer 2

Textbook Question

Chapter 19, Problem 1R

The records of Anderjak Corporation contain the following information for the month of January:

Chapter 19, Problem 1R, The records of Anderjak Corporation contain the following information for the month of January:

The

The company has no beginning inventory.

REQUIREMENT

You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

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Answer 3

Textbook Question

Chapter 19, Problem 1R

The records of Anderjak Corporation contain the following information for the month of January:

Chapter 19, Problem 1R, The records of Anderjak Corporation contain the following information for the month of January:

The

The company has no beginning inventory.

REQUIREMENT

You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

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Answer 4

Textbook Question

Chapter 19, Problem 1R

The records of Anderjak Corporation contain the following information for the month of January:

Chapter 19, Problem 1R, The records of Anderjak Corporation contain the following information for the month of January:

The

The company has no beginning inventory.

REQUIREMENT

You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

Answer 8

Expert Solution & Answer

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Prepare a income statement for january by using variable costing and absorption costing method.

Answer 12

Explanation of Solution

Prepare a income statement using absorption costing:

Income statement
Absorption costing
Particulars	Amount ($)	Amount ($)
Sales 80,000×$30		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 266,875
Variable manufacturing costs 70,000×$14	980,000
Fixed manufacturing costs	315,000
Total goods available for sale	$ 1,561,875
Less: ending inventory =$1,561,87515,000+70,000×15,000+70,000−80,000=18.375×5,000	91,875
Cost of goods sold		1,470,000
Gross profit		$ 930,000
Selling expenses:
Fixed selling expenses	$ 100,000
Variable selling expenses80,000×$2	160,000
Total selling expenses		260,000
Operating income		$ 670,000

Table (1)

Prepare a income statement using variable costing:

Income statement
Variable costing
Particulars	Amount ($)	Amount ($)
Sales		$ 2,400,000
Cost of goods sold:
Beginning inventory cost	$ 210,000
Variable manufacturing costs 70,000×$14	980,000
Total goods available for sale	$ 1,190,000
Less: ending inventory=$1,190,00015,000+70,000×15,000+70,000−80,000=14×5,000	70,000
Variable cost of goods sold		1,120,000
Manufacturing margin		$ 1,280,000
Variable selling expenses 80,000×$2		160,000
Contribution margin		$ 1,120,000
Fixed costs:
Fixed manufacturing costs	$ 315,000
Fixed selling expenses	100,000
Total fixed costs		$ 415,000
Operating income		$ 705,000

Table (2)

Answer 13

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