Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $40 per unit $60 per unit $ 20 per unit $ 8,800,000 per year $ 11 per unit $ 5,000,000 per year 110,000 units 80,000 units $ 360 per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Sales $ 28,800,000 Less: Variable expenses Variable cost of goods sold $ 9,600,000 Variable selling and administrative expenses 880,000 10,480,000 Contribution margin Less: Fixed expenses Fixed overhead Fived selling and administrative evnences
Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $40 per unit $60 per unit $ 20 per unit $ 8,800,000 per year $ 11 per unit $ 5,000,000 per year 110,000 units 80,000 units $ 360 per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Sales $ 28,800,000 Less: Variable expenses Variable cost of goods sold $ 9,600,000 Variable selling and administrative expenses 880,000 10,480,000 Contribution margin Less: Fixed expenses Fixed overhead Fived selling and administrative evnences
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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