Please assist in solving 2 part problem
attached.
Question/Problem is listed under
"required"
1. prepare an income statement for current year under variable
costing
2. fill in blanks
See 3 attachments attached
Solution:
Kenji kayaking
Variable costing income statement:
Sales | $840,000 | |
Less: Variable cost | ||
Variable product cost | $240,000($300 × 800 units) | |
Variable selling and administrative expenses | $105,000($100 ×1050 units) | |
Total variable costs | $345,000 | |
Contribution margin | $495,000 | |
Less: Fixed expenses | ||
Fixed overhead costs | $105,000 | |
Fixed selling and administrative costs | $125,000 | |
Total fixed expenses | $230,000 | |
Net income (loss) | $265,000 | |
Net income under absorption costing is higher than net income under variable costing by: | $25,000 | |
Number of units added to (subtracted from) inventory | 250 (1050 units - 800 units) | |
$100 | ||
Fixed costs added to inventory | $25,000 ($100 ×250) | |
Please assist in solving 2 part problem attached. Question/Problem is listed under "required" 1. prepare an...
Exercise 19-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800. at a price of $1,050 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (800 $1,050) Cost of goods sold (800x $450) Gross margin $ 840,000 360,000 480,000 230,000 $ 250,000 Selling and administrative expenses Net income ces Additional Information a. Product...
19.4 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800 at a price of $1,050 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (800 x $1,050) Cost of goods sold (800 x $500) Gross margin Selling and administrative expenses Net income $840,000 400,000 440,000 230,000 $210,000 Additional Information a. Product cost per kayak totals $500, which consists of...
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) Cost of goods sold (750 $425) Gross margin Selling and administrative expenses Net income $ 750,000 318,750 431,250 230,000 $ 201,250 Additional Information a. Product cost per kayak totals $425, which consists of...
Ch 06 Ex 6-4 Saved Help Save & Exit Submit Check my work Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing. points $ eBook Sales (825 * $1,075) Cost of goods sold (825 * $400) Gross margin Selling and administrative expenses Net income 886,875 330,000...
Exercise 06-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 Kayaks and sold 800 at a price of $1,050 each. Al this first year-end, the company reported the following income statement information using absorption costing Sales (800 $1,ese) Cost of goods sold (880 $425) Gross margin Selling and administrative expenses Net income $ 840, eee 340,000 509,000 220,000 $ 280,000 Additional Information .. Product...
Exercise 06-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (825 x $1,075) Cost of goods sold (825 * $475) Gross margin Selling and administrative expenses Net income $ 886,875 391,875 495,000 210,000 $ 285,000 Additional Information a....
Exercise 19-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (825 x $1,075) Cost of goods sold (825 $475) Gross margin Selling and administrative expenses Net income 886,875 391,875 495,000 240,000 255,000 $ Additional Information a. Product cost...
Exercise 19-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800. at a price of $1,050 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (800 × $1,050) $ 840,000 Cost of goods sold (800 × $475) 380,000 Gross margin 460,000 Selling and administrative expenses 250,000 Net income $ 210,000 Additional Information...
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 x $1.000) Cost of goods sold (750 x $400) Gross margin Selling and administrative expenses Net income 750,000 300,000 450,000 250,000 200.000 $ Additional Information a. Product cost per kayak totals $400, which consists...
CH 06 Ex 6-9 Saved Part 1 of 4 Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] points Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 46,000 units and sold 38,000 units at a price of $150 per unit. Skipped Manufacturing costs Direct materials per unit Direct labor per...