Google Boutique has the following summary absorption costing income statement for 2015: Sales $1,320,000 Less: COGS 900,000 Plus: underapplied Fixed OH 10,000 Adjusted COGS Gross Margin 410,000 Less: S&A costs Income before taxes Additionally, • The unit sales price for 2015 was $44. . • 30,000 units were sold. . • Variable S&A cost per unit for 2015 was $6. Allocated Fixed Manufacturing overhead cost for 2015 was $128,000. Variable manufacturing cost per unit was $26 per unit. . • Total manufacturing cost per unit was $30 per unit. 2015 Beginning Inventory= 0 units and Ending Inventory =2,000 units. . 910,000 . 280,000 $130,000 Required: 1. Prepare a detailed variable costing income statement for Google Boutique for 2015. 1. Reconcile the income differences.
Google Boutique has the following summary absorption costing income statement for 2015: Sales $1,320,000 Less: COGS 900,000 Plus: underapplied Fixed OH 10,000 Adjusted COGS Gross Margin 410,000 Less: S&A costs Income before taxes Additionally, • The unit sales price for 2015 was $44. . • 30,000 units were sold. . • Variable S&A cost per unit for 2015 was $6. Allocated Fixed Manufacturing overhead cost for 2015 was $128,000. Variable manufacturing cost per unit was $26 per unit. . • Total manufacturing cost per unit was $30 per unit. 2015 Beginning Inventory= 0 units and Ending Inventory =2,000 units. . 910,000 . 280,000 $130,000 Required: 1. Prepare a detailed variable costing income statement for Google Boutique for 2015. 1. Reconcile the income differences.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Google Boutique has the following summary absorption costing income statement for 2015:
Sales
$1,320,000
Less: COGS
Plus: underapplied Fixed OH
Adjusted COGS
Gross Margin 410,000
Less: S&A costs
Income before taxes
Additionally,
. The unit sales price for 2015 was $44.
30,000 units were sold.
.
900,000
10,000
.
910,000
280,000
$130,000
• Variable S&A cost per unit for 2015 was $6.
Allocated Fixed Manufacturing overhead cost for 2015 was $128,000.
Variable manufacturing cost per unit was $26 per unit.
• Total manufacturing cost per unit was $30 per unit.
• 2015 Beginning Inventory= 0 units and Ending Inventory =2,000 units.
Required:
1. Prepare a detailed variable costing income statement for Google Boutique for 2015.
1. Reconcile the income differences.
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