On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Morristown & Co. Absorption Costing Income Statement For Month Ended October 31, 20-- Sales (2,600 units) $117,000 Cost of goods sold: Cost of goods manufactured $85,500 Less ending inventory (400 units) 11,400 Cost of goods sold 74,100 Gross profit $42,900 Selling and administrative expenses 21,500 Income from operations $21,400 If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing. Morristown & Co. Variable Costing Income Statement For Month Ended October 31, 20
On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Morristown & Co. Absorption Costing Income Statement For Month Ended October 31, 20-- Sales (2,600 units) $117,000 Cost of goods sold: Cost of goods manufactured $85,500 Less ending inventory (400 units) 11,400 Cost of goods sold 74,100 Gross profit $42,900 Selling and administrative expenses 21,500 Income from operations $21,400 If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing. Morristown & Co. Variable Costing Income Statement For Month Ended October 31, 20
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter20: Variable Costing For Management Analysis
Section: Chapter Questions
Problem 4DQ: In the variable costing income statement, how are the fixed manufacturing costs reported, and how...
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On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing:
Morristown & Co. | ||||
Absorption Costing Income Statement | ||||
For Month Ended October 31, 20-- | ||||
Sales (2,600 units) | $117,000 | |||
Cost of goods sold: | ||||
Cost of goods manufactured | $85,500 | |||
Less ending inventory (400 units) | 11,400 | |||
Cost of goods sold | 74,100 | |||
Gross profit | $42,900 | |||
Selling and administrative expenses | 21,500 | |||
Income from operations | $21,400 |
If the fixed
Morristown & Co.
Variable Costing Income Statement
For Month Ended October 31, 20--
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