Prepare a variable costing income statement

Assignment Help Accounting Basics
Reference no: EM131814013

Question: Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per unit), variable overhead ($5 per unit), fixed manufacturing ($225,000), and fixed selling and administrative ($30,000). In October 2014. Montier produced 25,000 units and sold 20,000 at $50 each.

Instructions: a. Prepare an absorption costing income statement.

b. Prepare a variable costing income statement.

c. Explain the difference In net income in the two income statements

Reference no: EM131814013

Questions Cloud

Decreased from the change in the exchange rate : When you repatriate your profits to dollars, has your net income increased or decreased from the change in the exchange rate?
Explain what kant meant by categorical imperative : Describe the relationship between Kant's idea of the categorical imperative and his search for morality. Why does Kant think morality is a duty for all humans?
What is the current selling price of the bond in dollars : What is the current selling price of the bond in dollars? What is the current yield of this bond?
Explain kierkegaards stages of life to three to five friend : Consider the ages of people who responded. Do you think age and life experience have anything to do with the responses and comments you heard?
Prepare a variable costing income statement : Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per unit), variable overhead ($5 per unit).
What were the equivalent units for conversion costs : The Morgan Models company manufacturers' replica plastic airplane and motorized vehicle models. During October, the firm's Assembly Department started.
What is the difference between market and government failure : What is the difference between market failure and government failure? What are some of the problems the political system faces in overseeing markets?
Write a page lab report using the scientific method : Write a 1-page lab report using the scientific method centered on the known phenomena of CO2 emissions.
What is the estimated raw materials inventory balance : Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Compute the direct labor rate variance

Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months

  Appropriately classified as deductions for agi

Larry and Susan each invest $10,000 in separate investment activities. They each incur deductible expenses of $800 associated with their respective investments. Explain why Larry's expenses might be properly classified as deductions from AGI (item..

  Assume shin uses a periodic system and fifo use the

shin company sells one product. presented below is information for january for shin company.jan. 1 inventory 300 units

  Fired upward at an angle to the horizontal

Fill in the blanks in the Lab Answer Sheet at the end of this lab. Submit this Lab Answer Sheet when all of the labs are completed.

  Replace a low assessed level of control risk as evidence

Replace a low assessed level of control risk as evidence to support the assertion

  Finance net capital expenditures

The firm's beta is 1.5 and the current risk-free rate is 6 percent. The firm plans to finance net capital expenditures (Cap Ex - Depreciation) and working capital with 20 percent debt. The firm also has current revenues of $5,000, which it expects..

  Problem related to unfavorable materials quantity variance

Actual production in November was 3,100 units of Titactium. There was a favorable materials price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that:

  The sales policy at st falls dictates that job bids be

the sales policy at st. falls dictates that job bids be calculated by adding 24 percent to total manufacturing costs.

  Compute sales revenue net sales and gross profit

Compute Sales Revenue, Net Sales, and Gross Profit for LBS. Larry's Building Supplies (LBS) is a local hardware store

  Ohave inc purchased land building and equipment from

ohave inc. purchased land building and equipment from laguna corporation for a cash payment of 374850. the estimated

  Use the following to answer questions 1 2 and 3 on direct

use the following to answer questions 1 2 and 3 on direct material and direct labor budgetsmay co. manufactures a

  Determine the amount of the amortization depletion or

data related to the acquisition of timber rights and intangible assets during the current year ended december 31 are as

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd