Question

Income Statement Indicating Standard Cost Variances The following data were taken from the records of Griggs Company for December: $100,800 Administrative expenses Cost of goods sold (at standard) Direct materials price variance-unfavorable 550,000 1,680 Direct materials quantity variance-favorable Direct labor rate variance-favorable Direct labor time variance-unfavorable Variable factory overhead controllable variance-favorable Fixed factory overhead volume variance-unfavorable Interest expense (560) (1,120) 490 (210) 3,080 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry leave it blank. Griggs Company Income Statement For the Month Ended December 31 Unfavorable Favorable Variances from standard cost:

Answer 1

Income statement
title			amount	amount	amount
sales					868000
less: cost of goods sold					550000
Gross profit					318000
less: variances from standard cost			unfavorable	favorable
Direct material price variance				1680
Direct material qauntity variance			-560
Direct labor rate variance			-1120
Direct labor time variance				490
variable factory overhead controllable variance			-210
fixed factory Overhead volume variance				3080	3360
					314640
Operating expenses
administrative expenses				100800
selling expenses				125000	225800
					88840
other expenses
interest expenses					2940
net income					85900

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