Question
Asked Oct 1, 2019
27 views
Number of units produced   2,900
Number of units sold   1,700
Unit sales price $ 790.00
Direct materials per unit   75.00
Direct labor per unit   105.00
Variable manufacturing overhead per unit   55.00
Fixed manufacturing overhead per unit ($346,550 ÷ 2,900 units)   119.50
Total variable selling expenses ($12 per unit sold)   20,400.00
Total fixed general and administrative expenses   90,000.00

 

How would i complete a full absorption income statement and a contribution margin statement

check_circle

Expert Answer

Step 1

Absorption income statement is as follows:

 

Results of the formulas used in the above table are as follows:

 

Thus, the operating income under absorption costing is $629,950.

help_outline

Image Transcriptionclose

C A Income Statement for the year ended ... Amount (S) 10 Particulars Details - 1700 790 1700 354.5 -C11-C12 11 Sales Revenue 12 Cost of Goods Sold 13 Gross Profit 14 Selling and Administrative Cost: 15 Variable Selling expense 16 Fixed genral and Administrative expense 90000 - 1700* 12 B15+B16 -C13-C17 17 18 Operating Income C A B Income Statement for the year ended .. 9 Amount (S) 10 Particulars Details 11 Sales Revenue 12 Cost of Goods Sold 13 Gross Profit 14 Selling and Administrative Cost: 15 Variable Selling expense 16 Fixed genral and Administrative expense 1343000 602650 740350 20400 90000 110400 17 18 Operating Income 629950

fullscreen
Step 2

Working note:

 

Calculation of product cost per unit:

Results of the formulas used in the above table are as ...

help_outline

Image Transcriptionclose

A Product cost per unit Particulars 1 Amount (S) 75 105 55 119.5 |-SUM(B3:B6) 2 3 Direct material 4 Direct labor 5 Variable Manufacturing overhead 6 Fixed Manufacturing overhead 7 Product Cost per Unit A Product cost per unit 1 Amount (S) Particulars 2 3 Direct material $75.00 4 Direct labor $105.00 5 Variable Manufacturing overhead 6 Fixed Manufacturing overhead 7 Product Cost per Unit $55.00 $119.50 $354.50

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: On January 1, 2021, Wildhorse Corporation had 980,000 shares of common stock outstanding. On March 1...

A: Note: Assume that the accounting period of Company starts in January and ends in December of every y...

question_answer

Q: REVENUE JOURNAL Date InvoiceNo. Account Debited Post.Ref. Accounts Rec. Dr.Fees Earned Cr. 20Y3 ...

A: Part a, b and c, which is T accounts, Posting in T account and balance in the accounts are shown as ...

question_answer

Q: Chris P. Bacon is the chief accountant for CV Industries, a large manufacturing company. In addition...

A: 1.) Chris's behaviour is unethical.As per the accounting principles, any unearned income is recorded...

question_answer

Q: How much of the following gifts are included in the adjusted taxable gifts calculation of a decedent...

A: As per the rules, following are applicable in this question:1. Annual gift tax exclusion is $15,000 ...

question_answer

Q: Samba Corporation operates in an industry with a high collectability issues. Recently, one of Samba'...

A: Bank reconciliation statement:Bank reconciliation statement is a report that summarizes the banking ...

question_answer

Q: I'm able to do the cash flow, but I am confused about the cash received from customers part of this....

A: In a cash flow statement, all inflows are positive and all outflows are negative values. 

question_answer

Q: Nichols Company had the following items that required adjustment at December 31, 2013. Required: 1. ...

A: 1. Prepare the adjusting entries:

question_answer

Q: Heartstrings Gift Shoppe sells an assortment of gifts for any occasion. During October, Heartstrings...

A: Accounting is done with two methods:Cash basis accounting: Under the cash basis accounting all cash ...

question_answer

Q: Analyzing an Inventory Footnote DisclosureThe inventory footnote from Deere & Company’s 2015 10-...

A: a.Deere shows inventories at $3817 million, on its balance sheet for period 2015.