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On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (16,000 units) $1,152,000 Cost of goods sold: Cost of goods manufactured $874,000 Less ending inventory (3,000 units) 138,000 Cost of goods sold 736,000 Gross profit $416,000 Selling and administrative expenses 88,000 Income from operations $328,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $57,000 and the variable selling and administrative expenses were $40,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollarn

On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (16,000 units) $1,152,000 Cost of goods sold: Cost of goods manufactured $874,000 Less ending inventory (3,000 units) 138,000 Cost of goods sold 736,000 Gross profit $416,000 Selling and administrative expenses 88,000 Income from operations $328,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $57,000 and the variable selling and administrative expenses were $40,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollarn

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...
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On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (16,000 units) $1,152,000 Cost of goods sold: Cost of goods manufactured $874,000 Less ending inventory (3,000 units) 138,000 Cost of goods sold 736,000 Gross profit $416,000 Selling and administrative expenses 88,000 Income from operations $328,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $57,000 and the variable selling and administrative expenses were $40,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Rhys Company Income Statement-Variable Costing For the Month Ended July 31 Sales 1,152,000 Variable cost of goods sold: Variable cost of goods manufactured Less ending inventory Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Income from operations
Transcribed Image Text:On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (16,000 units) $1,152,000 Cost of goods sold: Cost of goods manufactured $874,000 Less ending inventory (3,000 units) 138,000 Cost of goods sold 736,000 Gross profit $416,000 Selling and administrative expenses 88,000 Income from operations $328,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $57,000 and the variable selling and administrative expenses were $40,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Rhys Company Income Statement-Variable Costing For the Month Ended July 31 Sales 1,152,000 Variable cost of goods sold: Variable cost of goods manufactured Less ending inventory Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Income from operations
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