Question

Homework: Chapter 9 HW Problems Save Score: 1.11 of 6 pts 2 of 4 (4 complete) HW Score: 50.64%, 12.15 of 24 pts % P9-40 (similar to) * Question Help WJB Company manufactures a specialized hoverboard. WJB began 2017 with an inventory of 300 hoverboards. During the year, it produced 800 boards and sold 1,010 for $750 each. Fixed production costs were $183,600, and variable production costs were $320 per unit. Fixed advertising, marketing, and other general and administrative expenses were $110,000, and variable shipping costs were $15 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost. Read the requirements. Contribution margin 419, 150 Fixed manufacturing costs 183,600 110,000 Fixed selling and administrative costs $ Operating income (loss) 125,550 Requirement 2. Prepare an income statement assuming WJB uses absorption costing. WJB uses a denominator level of 680 units. Production-volume variances are written off to cost of goods sold. Complete the top half of the income statement first, then complete the bottom portion. (Label any variances as favorable (F) or unfavorable (U). Use parentheses or a minus sign for an operating loss.) Revenues 757,500 Cost of goods sold: Beginning inventory Variable manufacturing costs Fixed manufacturing costs Choose from any list or enter any number in the input fields and then click Check Answer. ?

Answer 1

Income Statement under Absorption costing
Particulars	$	$
Revenue		757500
Less COGS:
Beginning Inventory(590*300)	177000
Variable manufacturing costs(320*800)	256000
Fixed Manufacturing costs	183600
Less Closing inventory(590*80)	-53100
COGS		563500
Less : Non-Manufacturing costs
Variable selling costs	15150
Fixed Non- operation costs	110000
Total Manufacturing costs		125150
Operating Income		68850