Company XYZ operates with a single product. The following simple income statement relates to last year when sales units totaled 27,000.        Variable Costing   Total Per Unit Sales  $    513,000.00  $         19.00 Variable COGS  $    221,400.00  $           8.20 Variable S&A  $       54,000.00  $           2.00    $    237,600.00  $           8.80 Fixed Mfg Overhead  $    154,000.00   Fixed S&A Expense  $       42,000.00   Net Op Income  $       41,600.00               A. Company XYZ unit production for the year totaled 28,000 units. Prepare a GAAP Income statement for XYZ. Reconcile and differences between the Variable Costing and GAAP Net Operating Incomes.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
icon
Related questions
icon
Concept explainers
Question
Company XYZ operates with a single product. The following simple income statement relates to last year when sales units totaled 27,000
     
Variable Costing
  Total Per Unit
Sales  $    513,000.00  $         19.00
Variable COGS  $    221,400.00  $           8.20
Variable S&A  $       54,000.00  $           2.00
   $    237,600.00  $           8.80
Fixed Mfg Overhead  $    154,000.00  
Fixed S&A Expense  $       42,000.00  
Net Op Income  $       41,600.00  
     
     

A. Company XYZ unit production for the year totaled 28,000 units. Prepare a GAAP Income statement for XYZ.

Reconcile and differences between the Variable Costing and GAAP Net Operating Incomes. 

 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost volume profit (CVP) analysis
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,