Question

Nelter Corporation, which h
Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: $ 122 290 6,600 6,590 300 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ PNON $151,800 $ 46,130 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing. Complete this question by entering your answers in the tabs below.
as only one product, has provided the following data concerning its most recent month of operations: Selling price $ 122 Units in beginning inventory 290 Units produced 6,600 Units sold 6,590 Units in ending inventory 300 Variable costs per unit: Direct materials $ 42 Direct labor $ 26 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 21 Fixed costs: Fixed manufacturing overhead $ 151,800 Fixed selling and administrative expense $ 46,130 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing.

Answer 1

803980 461300 138390 Requirement: a Variable costing income statement Sales Variable Expense: Variable cost of goods sold Variable Selling and Administrative Expense Total Varible Expenses Contribution Margin Fixed Expenses : Fixed manufacturing Overheads Fixed Sellingand Administrative Expenses Total fixed Expenses Net Operating Income 599690 204290 151800 46130 197930 6360 Requirement: b Absorption costing Income Statement Sales Cost of Goods Sold Gross Margin Selling and administrative expense Operating Income or loss 803980 612870 191110 184520 6590