Prepare a new income statement for the year using variable

Reference no: EM13568530

Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year are presented below: Units in beginning inventory 2,000 Units produced 9,000 Units sold 10,000 Sales $100,000 Less cost of goods sold: Beginning inventory 12,000 Add cost of goods manufactured 54,000 Goods available for sale 66,000 Less ending inventory 6,000 Cost of goods sold 60,000 Gross margin 40,000 Less selling and admin. expenses 28,000 Net operating income $12,000 Variable manufacturing costs are $4 per unit. Fixed factory overhead totals $18,000 for the year. This overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold. Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements.

Reference no: EM13568530

Questions Cloud

Some have suggested that the names of majority race jurors : the supreme court has repeatedly asserted that a defendant is not entitled to a jury composed in whole or in part of

Prepare the december 31 entry for brigham corporation to : part a -on july 1 2014 brigham corporation purchased young company by paying 250000 cash and issuing a 100000 note

If a corporation sold x units of product for y each and had : if a corporation sold x units of product for y each and had m in total fixed and l in total variable costs write

Stojko corporation had a net decrease in cash of 10000 for : stojko corporation had a net decrease in cash of 10000 for the current year. net cash used in investing activities was

Prepare a new income statement for the year using variable : topple company produces a single product. operating data for the company and its absorption costing income statement

What is the fsab codification for net operating loss i have : what is the fsab codification for net operating loss? i have to write a paper on how it is handled on the financial

On march 1 2012 chance company entered into a contract to : on march 1 2012 chance company entered into a contract to build an apartment building. it is estimated that the

Paying a hospital for the medical expenses of a : steve is considering the following actions. explain to him which actions will constitute gifts for gift tax

How much working capital does a corporation with 50 million : how much working capital does a corporation with 50 million in short-term debt and a current ratio of 4

User Account

All Pages