Question

ILISU UCHUIS The following data were taken from the records of Griggs Company for December: $100,800 Administrative expenses Cost of goods sold (at standard) 550,000 Direct materials price variance-unfavorable 1,680 Direct materials quantity variance-favorable Direct labor rate variance-favorable Direct labor time variance-unfavorable (560) (1,120) 490 (210) 3,080 2,940 Variable factory overhead controllable variance-favorable Fixed factory overhead volume variance-unfavorable Interest expense Sales 868,000 Selling expenses 125,000 Required: Prepare an income statement for presentation to management. Refer to the list of Labels and Amount Desc the answer choices for text entries. Enter a favorable variance as a negative number using a minus sign and positive number. A colon () will automatically appear for you if it is required.

Answer 1

868000 550000 318000 560 Answer: GRIGGS COMPANY Income Statement For the Month Ended December 31 Sales Cost of Goods Sold-At Standard Gross Profit-at Standard Favorable Unfavorable Less Variance from Standard Cost: Direct Materials Price 1680 Direct Materials Quantity Direct Labor Rate Direct Labor Time 490 Variable Factory Overhead Controllable 210 Fixed Factory Overhead Volume 3080 Gross Profit Operating Expenses: Selling Expenses 125000 Administrative Expenses 100800 Income from Operations Other Expenses: Interest Expenses Income Before Income Tax 1120 314640 225800 88840 2940 85900