MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 6, Problem 2PSA
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows.
| Sales (80.000 units x $50 per unit) | $4,000,000 | |
| Cost of goods sold | ||
| Beginning inventory | ||
| Cost of goods manufactured (100,000 units x $30 per unit) | 3,000,000 | |
| Cost of goods available for sale | 3.000.000 | |
| Ending inventory (20.000 x $30) | 600,030 | |
| Cost of goods sold | 2.400.000 | |
| Gross margin | 1,600,000 | |
| Selling and administrative expenses | 530,000 | |
| Net income | $1,070,000 |
Additional Information
- Selling and administrative expenses consist of $350,000 in annual fixed expenses and $2.25 per unit in variable selling and administrative expenses.
- The company’s product cost of $30 per unit is computed as follows.
| Direct materials SS per unit |
Direct labor $14 per unit
Variable overhead $2 per unit
Faced overhead ($900,000/ 100,000 units) $9 per unit
Required
- Prepare an income statement for the company under variable costing.
- Explain any difference between the income under variable costing (from part I) and the income reported above.
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Chapter 6 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQ
Ch. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Prob. 5QSCh. 6 - Prob. 6QSCh. 6 - Prob. 7QSCh. 6 - Prob. 8QSCh. 6 - Prob. 9QSCh. 6 - Prob. 10QSCh. 6 - Prob. 11QSCh. 6 - Prob. 12QSCh. 6 - Prob. 13QSCh. 6 - Prob. 14QSCh. 6 - Prob. 15QSCh. 6 - Prob. 16QSCh. 6 - Prob. 17QSCh. 6 - Prob. 18QSCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Sims Company, a manufacturer of table computers,...Ch. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - A recent annual report for McDonalds reports the...Ch. 6 - Dowell Company produces a single product, its...Ch. 6 - Trez Company began operations this year. During...Ch. 6 - Prob. 3PSACh. 6 - Prob. 1PSBCh. 6 - Prob. 2PSBCh. 6 - Prob. 3PSBCh. 6 - (This serial problem began in Chapter 1 and...Ch. 6 - Apples coding inventory amounts (in $ millions)...Ch. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTNCh. 6 - Prob. 5BTNCh. 6 - Prob. 6BTNCh. 6 - Happy Family Brands, which was launched by...Ch. 6 - Prob. 8BTNCh. 6 - Prob. 9BTN
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