Required Prepare separate income statements for all three year

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.9BE
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Q No.# 2 The following data were taken from the records of a company.

 

                                                Period 1                       Period 2                       Period 3

Production(units)                    30,000                         38000                          27000

Sales                                        30,000                         27000                          38000

Opening stock                                                                                                 11,000

Closing stock                          ------                             11,000                         -------

 

                                               

Per unit cost are as follows:

Direct material                                                $ 1.5

Direct labor                                                        1.0

Production overhead                                           3.0

Selling price per unit                                          $ 9

Administrative overheads are fixed at $25000 and one third of the production overheads are fixed.

Required

Prepare separate income statements for all three year  

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