Variable and Absorption Costing The following data were adapted from a recent income statement of Ansara Company for the year ended December 31: (in millions) Sales $21,460 Cost of goods sold $(18,240) Selling, administrative, and other expenses (1,930) Total expenses $(20,170) Operating income $1,290 Assume that $4,680 million of cost of goods sold and $1,060 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Beginning inventory $2,550 Ending inventory $2,980 Also, assume that 30% of the beginning and ending inventories were fixed costs. Prenare an in come statement according to the variable costing concent for Ansara Company Round numbers to n earest million

Variable and Absorption Costing The following data were adapted from a recent income statement of Ansara Company for the year ended December 31: (in millions) Sales $21,460 Cost of goods sold $(18,240) Selling, administrative, and other expenses (1,930) Total expenses $(20,170) Operating income $1,290 Assume that $4,680 million of cost of goods sold and $1,060 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Beginning inventory $2,550 Ending inventory $2,980 Also, assume that 30% of the beginning and ending inventories were fixed costs. Prenare an in come statement according to the variable costing concent for Ansara Company Round numbers to n earest million

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 9E: The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the...

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