Essentials of Business Communication (MindTap Course List)
11th Edition
ISBN: 9781337386494
Author: Mary Ellen Guffey, Dana Loewy
Publisher: Cengage Learning
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Chapter 5, Problem 5.9AAC
Summary Introduction
To Determine: Read a podcast and determine whether it is, direct or indirect, informative or persuasive, the method of presentation, the presentation style of the artist, the usefulness of the information and write a summary of the podcast for a tweet or email.
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Kenzi Kayaking, a manufacturer of kayaks, began operations this year.
During this first year, the company produced 1,000 kayaks and sold 750.
at a price of $1,000 each. At this first year-end, the company reported
the following income statement information using absorption costing.
Sales (750 $1,000) $750,000
Cost of goods sold (750 $450) 337,500
Gross margin 412,500
Selling and administrative expenses 240,000
Net income $172,500
Additional Information:
a. Production cost per kayak totals $450, which consists of $350 in
variable production cost and $100 in fixed production cost the latter
amount is based on $100,000 of fixed production costs allocated to the
1,000 kayaks produced.
b. The $240,000 in selling and administrative expense consists of
$95,000 that is variable and $145,000 that is fixed.
Required:
Prepare an income statement for the current year under variable
costing.
Don't use ai given answer accounting questions
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Essentials of Business Communication (MindTap Course List)
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