The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.25 Direct Labor per Unit $1.25 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.50 Units Produced 39,000 Units Sold 35,000 Sales Price $12 Fixed Manufacturing Expenses $117,000 Fixed Selling and Administration Expenses $21,000 Prepare an income statement under variable costing method. Appliance Apps Income Statement

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
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Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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The following information was collected for the first year of manufacturing for Appliance Apps:
Direct Materials per Unit
$2.25
Direct Labor per Unit
$1.25
Variable Manufacturing Overhead per Unit
$0.25
Variable Selling and Administration Expenses
$1.50
Units Produced
39,000
Units Sold
35,000
Sales Price
$12
Fixed Manufacturing Expenses
$117,000
Fixed Selling and Administration Expenses
$21,000
Prepare an income statement under variable costing method.
Appliance Apps
Income Statement
Transcribed Image Text:The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.25 Direct Labor per Unit $1.25 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.50 Units Produced 39,000 Units Sold 35,000 Sales Price $12 Fixed Manufacturing Expenses $117,000 Fixed Selling and Administration Expenses $21,000 Prepare an income statement under variable costing method. Appliance Apps Income Statement
Prepare a reconciliation to the income under the absorption method.
Appliance Apps
Reconciliation
%24
Transcribed Image Text:Prepare a reconciliation to the income under the absorption method. Appliance Apps Reconciliation %24
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The income statement using variable costing is prepared such as variable costs are included in the product cost. 

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