Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 441 Weeks Ago, 2 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 08 May 2017 My Price 15.00

Variable Costing Income Statement

 

Variable Costing Income Statement

On June 30, the end of the first month of operations, Clowney Company prepared the following income statement, based on the absorption costing concept:

Clowney Company
Absorption Costing Income Statement
For the Month Ended June 30, 2015
Sales (2,700 units)   $78,300  
Cost of goods sold:    
Cost of goods manufactured (3,100 units) $65,100    
Less inventory, June 30 (400 units) 8,400    
Cost of goods sold   56,700  
Gross profit   $21,600  
Selling and administrative expenses   12,270  
Income from operations   $9,330  

Assume the fixed manufacturing costs were $13,020 and the variable selling and administrative expenses were $6,260.

       

Prepare an income statement according to the variable costing concept.

Clowney Company

Variable Costing Income Statement

For the Month Ended June 30, 2015

  
     

$  

Variable cost of goods sold:
       

  
 

$  
   

  
 

  
   

  
     

  

  
     

$  

  
     

  

  
     

$  

Fixed costs:
       

  
 

$  
   

  

Absorption and Variable Costing Income Statements

During the first month of operations ended May 31, 2014, Dorm Fridge Company manufactured 8,600 microwaves, of which 8,200 were sold. Operating data for the month are summarized as follows:

Sales   $1,189,000
Manufacturing costs:    
    Direct materials $584,800  
    Direct labor 172,000  
    Variable manufacturing cost 146,200  
    Fixed manufacturing cost 77,400 980,400
Selling and administrative expenses:    
    Variable $98,400  
    Fixed 45,300 143,700

Required:

  Hide  

Hint(s) rejoinder_btn_hint_perItem.gif

1. Prepare an income statement based on the absorption costing concept.

Dorm Fridge Company

Absorption Costing Income Statement

For the Month Ended May 31, 2014

  
     

$  

Cost of goods sold:
       

  
 

$  
   

  
 

  
   

  
     

  

  
     

$  

  
     

  

  
     

$  

1. Sales - (cost of goods manufactured - ending inventory*) = Gross profit; gross profit - selling and administrative expenses = income from operations.
* (Manufactured Units - Sold units) x (total manufacturing costs/manufactured units)

       

2. Prepare an income statement based on the variable costing concept.

Dorm Fridge Company

Variable Costing Income Statement

For the Month Ended May 31, 2014

  
     

$  

Variable cost of goods sold:
       

  
 

$  
   

  
 

  
   

  
     

  

  
     

$  

  
     

  

  
     

$  

Fixed costs:
       

  
 

$  
   

  
 

  
 

  

  
     

$  
 

  
 

  

  
     

$  

Absorption Costing Income Statement

On May 31, the end of the first month of operations, Seger Equipment Company prepared the following income statement, based on the variable costing concept:

Seger Equipment Company
Variable Costing Income Statement
For the Month Ended May 31, 2014
Sales (14,500 units)   $870,000  
Variable cost of goods sold:    
Variable cost of goods manufactured $405,600    
Less inventory, May 31 (2,400 units) 57,600    
Variable cost of goods sold   348,000  
Manufacturing margin   $522,000  
Variable selling and administrative expenses   232,000  
Contribution margin   $290,000  
Fixed costs:    
Fixed manufacturing costs $84,500    
Fixed selling and administrative expenses 58,000   142,500  
Income from operations   $147,500  

Prepare an income statement under absorption costing.

Seger Equipment Company

Absorption Costing Income Statement

For the Month Ended May 31, 2014

  
     

$  

Cost of goods sold:
       

  
 

$  
   

  
 

  
   

  
     

  

  
     

$  

  
     

  

  
     

$  
 
 

Answers

Alpha Geek
(8)
Status NEW Posted 08 May 2017 10:05 AM My Price 15.00

-----------

Attachments

file 1494238032-Answer.docx preview (581 words )
V-----------ari-----------abl-----------e C-----------ost-----------ing----------- In-----------com-----------e S-----------tat-----------eme-----------nt ----------- On----------- Ju-----------ne -----------30,----------- th-----------e e-----------nd -----------of -----------the----------- fi-----------rst----------- mo-----------nth----------- of----------- op-----------era-----------tio-----------ns,----------- Cl-----------own-----------ey -----------Com-----------pan-----------y p-----------rep-----------are-----------d t-----------he -----------fol-----------low-----------ing----------- in-----------com-----------e s-----------tat-----------eme-----------nt,----------- ba-----------sed----------- on----------- th-----------e a-----------bso-----------rpt-----------ion----------- co-----------sti-----------ng -----------con-----------cep-----------t: ----------- Cl-----------own-----------ey -----------Com-----------pan-----------yAb-----------sor-----------pti-----------on -----------Cos-----------tin-----------g I-----------nco-----------me -----------Sta-----------tem-----------ent-----------For----------- th-----------e M-----------ont-----------h E-----------nde-----------d J-----------une----------- 30-----------, 2-----------015----------- S-----------ale-----------s (-----------2,7-----------00 -----------uni-----------ts)----------- $7-----------8,3-----------00 -----------Cos-----------t o-----------f g-----------ood-----------s s-----------old-----------: C-----------ost----------- of----------- go-----------ods----------- ma-----------nuf-----------act-----------ure-----------d (-----------3,1-----------00 -----------uni-----------ts)----------- $6-----------5,1-----------00 -----------Les-----------s i-----------nve-----------nto-----------ry,----------- Ju-----------ne -----------30 -----------(40-----------0 u-----------nit-----------s) -----------8,4-----------00 -----------Cos-----------t o-----------f g-----------ood-----------s s-----------old-----------
Not Rated(0)
Relevent Questions