Question

Banana International provided the below data fits first year of operations) for Product A that it sells for $216 per unit 28 per unit 28 per unit Direct materials Direct Labor Overhead costs Variable overhead Fixed averhead per year Selling and administrative expenses Variable Fixed Units produced and sold 6 per unit 160, Dee per year 1B per unit S 200.000 per year 20, De units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. REY COMPANY Absorption Costing Income Statement Net vore das Required 23

Answer 1

4320000 Requirement: 1 REY Company Absorption Income statement Sales Less: Cost of goods sold: Direct materials Direct labor Variable overhead cost Fixed over head Cost 560000 560000 120000 160000 1400000 2920000 Cost of goods sold Gross margin Selling general and administrative expenses: Variable selling and administative expenses Fixed Selling and administrative expenses 360000 200000 Total Selling and administrative expenses Net Income (loss) 560000 2360000

Requirement: 2 REY Company Variable costing Income statement Sales 4320000 560000 560000 120000 360000 Less: Variable Expense Direct Material Direct Labor Variable Overhead Variable Selling and Administrative Expense Total Varible costs Contribution Magin Less: Fixed Expenses Fixed Overheads costs Fixed Selling and administrative expenses Total fixed Expenses Net Income (Loss) 1600000 2720000 160000 200000 360000 2360000