Solution
Whitman Corporation | ||
Contribution Format Income Statement | ||
Sales | $ 1,685,100.00 | |
Variable expenses: | ||
Variable Cost of goods sold | ||
Direct Material | $ 451,000.00 | |
Direct labor | $ 123,000.00 | |
Variable manufacturing overhead | $ 164,000.00 | |
Variable Selling and administrative expenses | $ 205,000.00 | |
Total Variable expenses | $ 943,000.00 | |
Contribution margin | $ 742,100.00 | |
Fixed expenses: | ||
Fixed manufacturing expenses | $ 306,000.00 | |
Fixed Selling and administrative expenses | $ 307,500.00 | |
Total Fixed expenses | $ 613,500.00 | |
Net operating income | $ 128,600.00 |
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Variable costing net operating income | $ 128,600 |
Fixed manufacturing expense assigned to ending inventory | $ 60,000 |
Absorption costing net operating income | $ 188,600 |
In variable costing Fixed manufacturing cost is not considered as period cost.
Whitman Company has just completed its first year of operations. The company's absorption costing income statement...
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: $1,685,100 Whitman Company Income Statement Sales (41,000 units X $41.10 per unit) Cost of goods sold (41,000 units x $21 per unit) Gross margin Selling and administrative expenses Net operating income 861,000 824, 100 430, 500 393.600 $ The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $3 per unit sold in variable expenses....
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (41,000 units x $45.10 per unit) Cost of goods sold (41,000 units x $21 per unit) Gross margin Selling and administrative expenses Net operating income $1,849,100 861,000 9BB, 100 471,500 $ 516,600 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $4 per unit sold in variable expenses. The...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement Sales (41,000 units × $42.10 per unit) $ 1,726,100 Cost of goods sold (41,000 units × $21 per unit) 861,000 Gross margin 865,100 Selling and administrative expenses 512,500 Net operating income $ 352,600 The company’s selling and administrative expenses consist of $307,500 per year in fixed expenses and $5 per unit sold in variable expenses. The...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement Sales (41,000 units × $43.10 per unit) $ 1,767,100 Cost of goods sold (41,000 units × $25 per unit) 1,025,000 Gross margin 742,100 Selling and administrative expenses 512,500 Net operating income $ 229,600 The company’s selling and administrative expenses consist of $307,500 per year in fixed expenses and $5 per unit sold in variable expenses. The...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year appears below: Whitman Company Income Statement Sales (41,000 units × $41.60 per unit) $ 1,705,600 Cost of goods sold (41,000 units × $24 per unit) 984,000 Gross margin 721,600 Selling and administrative expenses 471,500 Net operating income $ 250,100 The company’s selling and administrative expenses consist of $307,500 per year in fixed expenses and $4 per unit sold in variable expenses....
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (41,000 units x $41.60 per unit) Cost of goods sold (41,000 units $23 per unit) Gross margin Selling and administrative expenses Net operating income $1,705,600 943,000 762,600 471,500 $ 291, 100 The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $23...
8 Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (41,000 units X $40.60 per unit) Cost of goods sold (41,000 units * $21 per unit) Gross margin Selling and administrative expenses Net operating income $1,664,689 861,080 803,680 430,500 373,100 s The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $3 per unit sold in variable expenses. The...
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: Whitman Company Income Statement Sales (39,000 units * $42.10 per unit) Cost of goods sold (39,000 units * $22 per unit) $1,641,900 858,000 Gross margin Selling and administrative expenses 783,900 448,500 Net operating income $335,400 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $22...
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: White Company Income Statement Sales (41,000 wats X 166.60 per unit) Cost of goods sold (41.000 units X $22 per unit) Grossargin Selling and administrative expenses Het operating income $1.828,600 902.000 926,600 430.500 $496,100 The company's selling and administrative expenses consist of S307.500 per year in fixed expenses and $3 per unit sold in variable expenses. The $22 unit product...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year appears below: Whitman Company Income Statement Sales (42,000 units × $41.10 per unit) $ 1,726,200 Cost of goods sold (42,000 units × $21 per unit) 882,000 Gross margin 844,200 Selling and administrative expenses 525,000 Net operating income $ 319,200 The company’s selling and administrative expenses consist of $315,000 per year in fixed expenses and $5 per unit sold in...