1.a.
Variable Costing Income Statement | |||
January | February | March | |
Sales | $ 3,420,000 | $ 3,870,000 | $ 4,338,000 |
Variable Costs | |||
Variable Cost of Goods Sold | 712,500 | 806,250 | 903,750 |
Variable Marketing Cost | 475,000 | 537,500 | 602,500 |
Total Variable Costs | 1,187,500 | 1,343,750 | 1,506,250 |
Contribution Margin | 2,232,500 | 2,526,250 | 2,831,750 |
Fixed Costs | |||
Manufacturing | 440,000 | 440,000 | 440,000 |
Operating ( Marketing) | 180,000 | 180,000 | 180,000 |
Total Fixed Costs | 620,000 | 620,000 | 620,000 |
Net Operating Income | $ 1,612,500 | $ 1,906,250 | $ 2,211,750 |
b.
Absorption Costing Income Statement | |||
January | February | March | |
Sales | $ 3,420,000 | $ 3,870,000 | $ 4,338,000 |
Cost of Good Sold | |||
Variable Cost of Goods Sold | 712,500 | 806,250 | 903,750 |
Fixed Cost of Goods Sold | 380,000 | 430,000 | 482,000 |
Cost of Goods Sold | 1,092,500 | 1,236,250 | 1,385,750 |
Adjustment for production volume variance | 0 | (10,000) | 16,000 |
Gross Profit | 2,327,500 | 2,623,750 | 2,968,250 |
Operating ( marketing) costs | |||
Variable | 475,000 | 537,500 | 602,500 |
Fixed | 180,000 | 180,000 | 180,000 |
Total Operating ( Marketing ) Costs | 655,000 | 717,500 | 782,500 |
Net Operating Income | $ 1,672,500 | $ 1,906,250 | $ 2,185,750 |
2. Reconciliation of Variable Costing and Absorption Costing Net Operating Income:
January | February | March | |
Variable Costing Net Operating Income | $1,612,500 | $1,906,250 | $2,211,750 |
Add: Fixed manufacturing cost deferred in ending inventory ( $ 400 x units of ending inventory ) | 60,000 | 60,000 | 34,000 |
Less: Fixed manufacturing cost released from beginning inventory | 0 | 60,000 | 60,000 |
Absorption Costing Net Operating Income | $1,672,500 | $1,906,250 | $2,185,750 |
Crystal Clear Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating...
TV Plus Corporation manufacturers and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are attached. The selling price per unit is $2,200. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost if goods sold in the month in which it occurs. 1. Prepare income statements for...
Amazing Screen Corporation manufacturers and sells 50-inch Television sets and uses standard costing. Actual data relating to January, February, and March is attached. The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,000 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. The variable manufacturing cost per u...
1 and 3 please Quarryman Corporation Case Part I: Quarryman Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual date relating to January, February, and March 2019 are as follows: January February March Unit data Beginning Inventory 0 100 100 Production 1,425 1,425 1,560 1,550 1,500 Sales 1,400 Variable Costs: Manufacturing Cost per unit produced Marketing cost per unit $1,000 $1,000 $1,000 $700 $700 $700 sold Fixed Costs: Manufacturing Costs Marketing Costs $525,000 $525,000 $140,000 $525,000 $140,000...
Accelerate Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: E: (Click the icon to view the data.) The selling price per vehicle is $28,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it...
Variable and absorptioncosting;explaining operating-incomedifferences.TCMotorsassembles and sells motor vehicles, and uses standard costing. Actual data relating to April and May 2015 are The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or rate variances. Any produc- tion-volume variance is written off to cost of goods sold in the month in which it occurs. Required 1. Prepare April and May 2015...
Race Track Motors assembles and sells motor vehicles and uses standard costing Actual data relating to April and May 2017 are as follows (Click the icon to view the data) The selling price per vehicle is $30,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production volume variance is written off to cost of goods sold in the month in which...
Accelerate Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: (Click the icon to view the data.) The selling price per vehicle is $27,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs....
Champion Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are attached in a photo. The selling price per vehicle is $25,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400 units. There are no price, efficiency, or spending variances. Any production volume variance is written off to cost of goods sold in the month in which it occurs. 1. Prepare April and...
1 and 2 please Quarryman Corporation Case Part I: Quarryman Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual date relating to January, February, and March 2019 are as follows: January February March Unit data: Beginning Inventory 0 100 100 Production 1,500 1,425 1,425 1,560 Sales 1,550 1,400 Variable Costs: Manufacturing Cost per unit produced Marketing cost per unit sold $1,000 $1,000 $1,000 $700 $700 $700 Fixed Costs: Manufacturing Costs Marketing Costs $525,000 $525,000 $525,000 $140,000 $140,000...
Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing income statements relating to April and May 2017 are attached in photos. The variable manufacturing cost per unit of Nascar Motors are as follows: April May Direct material cost per unit $6,500 6,500 Direct manufacturing labor cost per unit 1,800 1,800 Manufacturing overhead cost per unit 3,200 3,200 1. Prepare income statements for Nascar Motors in April and May 2017...