Requirement 1a) |
||
Unit cost under Absorption costing | ||
Direct Material | 7.5 | |
Direct labour | 3.1 | |
Variable Manufacturing overheads | 1.9 | |
Fixed Manufacturing overheads (221400/27000) | 8.2 | |
Absorption costing unit prroduct cost | 20.7 | |
Requirement 1b) | ||
Income Statement under Absorption Costing | ||
Sales | $871,200 | |
Cost of Goods sold (300000+221400) | 521400 | |
Gross Margin | $349,800 | |
Selling and distribution expense (189600+219000) | 408,600 | |
Net operating income | -58,800 | |
Requirement 1c) | ||
Reconciliation Statement: | ||
Net income under Variable cocsting | -60900 | |
Add: Fixed cost deferred to next year (3000 units*8.2) | 24600 | |
Net income under Absorption costing | -36300 | |
Requirement 2a) | ||
Income Statement under variable costing | ||
Sales | 1,089,000 | |
Less: Variable cost | ||
variable cost of goods sold (30000/27000)*30000 | 375,000 | |
Variable selling expense (189600/27000)*30000 | 237,000 | 612,000 |
Contribution margin | 477,000 | |
Fixed expense: | ||
Fixed Manufacturing overheads | 221,400 | |
Fixed selling expense | 219,000 | |
Net operating Income | 36,600 | |
Requirement 3b) | ||
Income Stataement under Absorption Costing | ||
Sales | $1,089,000 | |
Cost of Goods sold (30000*20.7) | 621000 | |
Gross Margin | $468,000 | |
Selling and distribution expense (30000*7.9)+219000 | 456,000 | |
Net operating income | 12,000 | |
Requirement 3c) | ||
Reconciliation Statement: | ||
Net income under variable costing | 36,600 | |
Less: Fixed OH released in beginning inventory (3000 units @8.2) | 24600 | |
Net income under Absroption costing | 12,000 |
Please show all work! Thanks!! Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University $1,132,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,300 units) Variable expenses Variable cost of goods...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $ 1,136,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,400 units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University $ 1,120,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,800 units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $1. 132.000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,300 units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $1,140,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,500 units) Variable expenses: Variable cost of goods...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. $ 1,148,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,700 units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 $ 1,132.00e Sales (28,30e units) Variable expenses: Variable cost of...
Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,600 units) $1,144,000 Variable expenses: Variable cost of goods...
Check my w Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University $ 1,120,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,000 units) Variable expenses...
Just 3a 3b & 3c Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University $1,132,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,300 units) Variable...