statements and Farm Performance: variable and Absorption Costing ison Company had the following operating data for its first two years of operations riable costs per unit: Direct materials Direct labor Variable overhead 4,00 $2.90 1.50 xed costs per year: Overhead 180,000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. llison uses an actual costing system for product costing. equired: Prepare income statements for both years using absorption costing. If an amount is zero, enter "0" Jellison Company Absorption Costing Income Statement For Years 1 and 2 Sales Less: Cost of goods sold Gross profit Year 1 960,000 Year 2 1000,000

statements and Farm Performance: variable and Absorption Costing ison Company had the following operating data for its first two years of operations riable costs per unit: Direct materials Direct labor Variable overhead 4,00 $2.90 1.50 xed costs per year: Overhead 180,000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. llison uses an actual costing system for product costing. equired: Prepare income statements for both years using absorption costing. If an amount is zero, enter "0" Jellison Company Absorption Costing Income Statement For Years 1 and 2 Sales Less: Cost of goods sold Gross profit Year 1 960,000 Year 2 1000,000

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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Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
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