Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones.Beginning Inventory0Units Produced25,000Units Sold20,000Selling Price per Unit$145Variable Sales and Administration Expenses$4Fixed Sales and Administration Expenses$970,000Direct Material Cost per Unit$26Direct Labor Cost per Unit$11Variable Manufacturing Overhead Cost per Unit$4Fixed Manufacturing Overhead Cost per Month$977,500Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Appliance AppsIncome Statement: AbsorptionSales $fill in the blank 6801b2009034026_2Cost of Goods Sold: Beginning Inventory $fill in the blank 6801b2009034026_4 Cost of Goods Manufactured fill in the blank 6801b2009034026_6 Cost of Goods Available for Sale $fill in the blank 6801b2009034026_8 Ending Inventory fill in the blank 6801b2009034026_10 Total Cost of Goods Sold fill in the blank 6801b2009034026_11Gross Profit $fill in the blank 6801b2009034026_13Sales and Administrative Expenses: Variable$fill in the blank 6801b2009034026_14 Fixedfill in the blank 6801b2009034026_15 Total Fixed Sales and Administrative Expenses fill in the blank 6801b2009034026_17Net Operating Income $fill in the blank 6801b2009034026_19 Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. Appliance AppsIncome Statement: VariableSales $fill in the blank 87f58500606206d_2Cost of Goods Sold: Beginning Inventory $fill in the blank 87f58500606206d_4 Cost of Goods Manufactured fill in the blank 87f58500606206d_6 Cost of Goods Available for Sale $fill in the blank 87f58500606206d_8 Ending Inventory fill in the blank 87f58500606206d_10 Total Cost of Goods Sold fill in the blank 87f58500606206d_11Gross Contribution Margin $fill in the blank 87f58500606206d_13Sales and Administrative Expenses: Variable fill in the blank 87f58500606206d_14Contribution Margin $fill in the blank 87f58500606206d_16Fixed Sales and Administrative Expenses $fill in the blank 87f58500606206d_18 Fixed Manufacturing fill in the blank 87f58500606206d_20 Total Fixed Sales and Administrative Expenses fill in the blank 87f58500606206d_22Net Operating Income $fill in the blank 87f58500606206d_24 Prepare a reconciliation between the two statements. ReconciliationNet Income under Variable Costing $fill in the blank 06b33901a024041_2Add: Fixed Manufacturing Overhead Deferred fill in the blank 06b33901a024041_4Net Income under Absorption $fill in the blank 06b33901a024041_6

The units are produced in the manufacturing industry by incurring a cost of goods sold. It…

Answered: as the following costs associated with…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

See similar textbooks

Related questions

Question

Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones.

Beginning Inventory	0
Units Produced	25,000
Units Sold	20,000
Selling Price per Unit	$145
Variable Sales and Administration Expenses	$4
Fixed Sales and Administration Expenses	$970,000
Direct Material Cost per Unit	$26
Direct Labor Cost per Unit	$11
Variable Manufacturing Overhead Cost per Unit	$4
Fixed Manufacturing Overhead Cost per Month	$977,500

Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.


Appliance Apps
Income Statement: Absorption
Sales		$fill in the blank 6801b2009034026_2
Cost of Goods Sold:
Beginning Inventory	$fill in the blank 6801b2009034026_4
Cost of Goods Manufactured	fill in the blank 6801b2009034026_6
Cost of Goods Available for Sale	$fill in the blank 6801b2009034026_8
Ending Inventory	fill in the blank 6801b2009034026_10
Total Cost of Goods Sold		fill in the blank 6801b2009034026_11
Gross Profit		$fill in the blank 6801b2009034026_13
Sales and Administrative Expenses:
Variable	$fill in the blank 6801b2009034026_14
Fixed	fill in the blank 6801b2009034026_15
Total Fixed Sales and Administrative Expenses		fill in the blank 6801b2009034026_17
Net Operating Income		$fill in the blank 6801b2009034026_19

Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank.


Appliance Apps
Income Statement: Variable
Sales		$fill in the blank 87f58500606206d_2
Cost of Goods Sold:
Beginning Inventory	$fill in the blank 87f58500606206d_4
Cost of Goods Manufactured	fill in the blank 87f58500606206d_6
Cost of Goods Available for Sale	$fill in the blank 87f58500606206d_8
Ending Inventory	fill in the blank 87f58500606206d_10
Total Cost of Goods Sold		fill in the blank 87f58500606206d_11
Gross Contribution Margin		$fill in the blank 87f58500606206d_13
Sales and Administrative Expenses:
Variable		fill in the blank 87f58500606206d_14
Contribution Margin		$fill in the blank 87f58500606206d_16
Fixed Sales and Administrative Expenses	$fill in the blank 87f58500606206d_18
Fixed Manufacturing	fill in the blank 87f58500606206d_20
Total Fixed Sales and Administrative Expenses		fill in the blank 87f58500606206d_22
Net Operating Income		$fill in the blank 87f58500606206d_24

Prepare a reconciliation between the two statements.



Reconciliation
Net Income under Variable Costing	$fill in the blank 06b33901a024041_2
Add: Fixed Manufacturing Overhead Deferred	fill in the blank 06b33901a024041_4
Net Income under Absorption	$fill in the blank 06b33901a024041_6

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.