Prepare an income statement (through income before income tax) for presentation to management, using the following data from the records of Greenway Manufacturing Company for November of the current year:Administrative expenses$73,500Cost of goods sold (at standard)470,000Direct materials quantity variance—favorable1,200Direct materials price variance—favorable2,400Direct labor time variance—unfavorable900Direct labor rate variance—favorable500Factory overhead volume variance—unfavorable10,000Factory overhead controllable variance—favorable1,500Sales950,000Selling expenses165,800 If an amount box does not require an entry, leave it blank. Greenway Manufacturing CompanyIncome StatementFor Month Ended November 30Sales $fill in the blank 1Cost of goods sold - at standard fill in the blank 2Gross profit - at standard $fill in the blank 3Less variances from standard cost: FavorableUnfavorable Direct materials price$fill in the blank 4$fill in the blank 5 Direct materials quantityfill in the blank 6fill in the blank 7 Direct labor ratefill in the blank 8fill in the blank 9 Direct labor timefill in the blank 10fill in the blank 11 Factory overhead controllablefill in the blank 12fill in the blank 13 Factory overhead volumefill in the blank 14fill in the blank 15 Net Variance from Standard Cost fill in the blank 16Gross profit $fill in the blank 17Operating expenses: Selling expenses $fill in the blank 18 Administrative expenses fill in the blank 19 Total Selling & Administrative Expenses fill in the blank 20Income before income tax $fill in the blank 21

The income statement of an organization shows all incomes or revenue and expenses of an organization…

Answered: Prepare an income statement (through…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1PB: Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a...

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Question

Prepare an income statement (through income before income tax) for presentation to management, using the following data from the records of Greenway Manufacturing Company for November of the current year:

Administrative expenses	$73,500
Cost of goods sold (at standard)	470,000
Direct materials quantity variance—favorable	1,200
Direct materials price variance—favorable	2,400
Direct labor time variance—unfavorable	900
Direct labor rate variance—favorable	500
Factory overhead volume variance—unfavorable	10,000
Factory overhead controllable variance—favorable	1,500
Sales	950,000
Selling expenses	165,800

If an amount box does not require an entry, leave it blank.

Greenway Manufacturing Company
Income Statement
For Month Ended November 30
Sales			$fill in the blank 1
Cost of goods sold - at standard			fill in the blank 2
Gross profit - at standard			$fill in the blank 3
Less variances from standard cost:
	Favorable	Unfavorable
Direct materials price	$fill in the blank 4	$fill in the blank 5
Direct materials quantity	fill in the blank 6	fill in the blank 7
Direct labor rate	fill in the blank 8	fill in the blank 9
Direct labor time	fill in the blank 10	fill in the blank 11
Factory overhead controllable	fill in the blank 12	fill in the blank 13
Factory overhead volume	fill in the blank 14	fill in the blank 15
Net Variance from Standard Cost			fill in the blank 16
Gross profit			$fill in the blank 17
Operating expenses:
Selling expenses		$fill in the blank 18
Administrative expenses		fill in the blank 19
Total Selling & Administrative Expenses			fill in the blank 20
Income before income tax			$fill in the blank 21

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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