Joshua Company has determined the following selling price and manufacturing cost per unit based on normal production of 72,000 units per year:Selling price per unit..$22Variable cost per unit:Direct materials...$4Direct labor .....4Variable factory overhead..2Variable cost per unit$10Fixed costs:Fixed factory overhead per year$ 360,000Fixed selling and administrative expense per year........48,000MonthUnits ProducedUnits SoldOctober..6,0003,000November ......1,0004,000December......8,0006,000October has no beginning inventories.REQUIRED:Prepare comparative income statements, including a comparative schedule of cost of goods sold, for each of these three months in 2016 under each of the following:1. Absorption costing (include under- or overapplied overhead).2. Variable costing. Joshua CompanyComparative Income StatementsFor the Three Months Ending December 31, 2016OctoberNovemberDecember(3,000 units sold)(4,000 units sold)(6,000 units sold)VariableAbsorptionCostingAbsorptionVariableAbsorptionVariableCostingCostingCostingCostingCostingSalesLess: Cost of goods sold(Overyunderapplied factory OHTotalGross margin (loss)Manufacturing marginLess: Fixed factory overheadSelling and administrativeTotalNet income (loss)Joshua CompanyComparative Schedule of Cost of Goods SoldFor the Three Months Ending December 31, 2016OctoberNovemberDecemberAbsorption VariableCostingAbsorptionVariableAbsorptionVariableCostingCostingCostingCostingCostingBeginning finished goods inventoryCost of goods manufacturedGoods available for saleLess ending finished goods inventoryCost of goods sold

Name: Joshua Company has determined the following selling price and manufac
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Description: Joshua Company has determined the following selling price and manufacturing cost per unit based on normal production of 72,000 units per year:Selling price per unit..$22Variable cost per unit:Direct materials...$4Direct labor .....4Variable factory

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Prepare comparative income statements, including a comparative schedule of cost of goods sold, for each of these three months in 2016 under each of the following: 1. Absorption costing (include under- or overapplied overhead). 2. Variable costing.

Prepare comparative income statements, including a comparative schedule of cost of goods sold, for each of these three months in 2016 under each of the following: 1. Absorption costing (include under- or overapplied overhead). 2. Variable costing.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 29P: Jellison Company had the following operating data for its first two years of operations: Jellison...

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