Income statement with variances: The net income or net loss for a particular time period arising from the financial statement which reports revenues, and expenses from business operations is referred to as income statement. In the income statement with variances, the balance of each variances account indicates the favorable and unfavorable variance at the end of the period. To prepare: An income statement for presentation to management.

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Answer 1

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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.

Chapter 22, Problem 22.23EX

To determine

Income statement with variances:

The net income or net loss for a particular time period arising from the financial statement which reports revenues, and expenses from business operations is referred to as income statement. In the income statement with variances, the balance of each variances account indicates the favorable and unfavorable variance at the end of the period.

To prepare: An income statement for presentation to management.

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Preparing a standard cost income statement The May 2018 revenue and cost information for McDonald Outfitters, Inc. follows; Prepare a standard cost income statement for management through gross profit Report all standard cost variances for management’s use. Has management done a good or poor job of controlling costs? Explain.

Income Statement Indicating Standard Cost Variances The following data were taken from the records of Griggs Company for December: Administrative expenses $100,800 Cost of goods sold (at standard) 550,000 Direct materials price variance—unfavorable 1,680 Direct materials quantity variance—favorable (560) Direct labor rate variance—favorable (1,120) Direct labor time variance—unfavorable 490 Variable factory overhead controllable variance—favorable (210) Fixed factory overhead volume variance—unfavorable 3,080 Interest expense 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter all amounts as positive numbers. If an amount box does not require an entry leave it blank or enter "0". Griggs Company Income Statement For the Month Ended December 31 Sales $fill in the blank 2 Cost of goods sold-at standard fill in the blank 4 Gross profit-at standard $fill in the blank…

Prepare an income statement (through income before income tax) for presentation to management, using the following data from the records of Greenway Manufacturing Company for November of the current year: Administrative expenses $73,500 Cost of goods sold (at standard) 470,000 Direct materials quantity variance—favorable 1,200 Direct materials price variance—favorable 2,400 Direct labor time variance—unfavorable 900 Direct labor rate variance—favorable 500 Factory overhead volume variance—unfavorable 10,000 Factory overhead controllable variance—favorable 1,500 Sales 950,000 Selling expenses 165,800 If an amount box does not require an entry, leave it blank. Greenway Manufacturing Company Income Statement For Month Ended November 30 Sales $fill in the blank 1 Cost of goods sold - at standard fill in the blank 2 Gross profit - at standard $fill in the blank 3 Less variances from standard cost: Favorable Unfavorable…

Answer 2

Question

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.

Chapter 22, Problem 22.23EX

To determine

Income statement with variances:

The net income or net loss for a particular time period arising from the financial statement which reports revenues, and expenses from business operations is referred to as income statement. In the income statement with variances, the balance of each variances account indicates the favorable and unfavorable variance at the end of the period.

To prepare: An income statement for presentation to management.

Expert Solution & Answer

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Answer 3

Question

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.

Chapter 22, Problem 22.23EX

To determine

Income statement with variances:

The net income or net loss for a particular time period arising from the financial statement which reports revenues, and expenses from business operations is referred to as income statement. In the income statement with variances, the balance of each variances account indicates the favorable and unfavorable variance at the end of the period.

To prepare: An income statement for presentation to management.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

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.

Chapter 22, Problem 22.23EX

To determine