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QS 21-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $25.80 $ 2.80 Required: Prepare an income statement under absorption costing. ACES INC. Absorption Costing Income Statement Sales 24 558,600 Less: Cost of goods sold Variable production costs 147.060 Fixed overhead costs Cost of goods sold 147,060

QS 21-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $25.80 $ 2.80 Required: Prepare an income statement under absorption costing. ACES INC. Absorption Costing Income Statement Sales 24 558,600 Less: Cost of goods sold Variable production costs 147.060 Fixed overhead costs Cost of goods sold 147,060

Accounting
Accounting
27th Edition
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Chapter21: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21.28EX: Appendix Absorption costing income statement On June 30, the end of the first month of operations,...
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QS 21-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $25.80 $ 2.80 Required: Prepare an income statement under absorption costing. ACES INC. Absorption Costing Income Statenent Sales $4 558 600 Less: Cost of goods sold Variable production costs 147.060 Fixed overhead costs Cost of goods sold 147.060 %24
Transcribed Image Text:QS 21-20B Absorption costing income statement LO P5 Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each racket was sold at a price of $98. Fixed overhead costs are $93,840, and fixed selling and administrative costs are $66,000. The company also reports the following per unit costs for the year: Variable production costs Variable selling and administrative expenses $25.80 $ 2.80 Required: Prepare an income statement under absorption costing. ACES INC. Absorption Costing Income Statenent Sales $4 558 600 Less: Cost of goods sold Variable production costs 147.060 Fixed overhead costs Cost of goods sold 147.060 %24
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