Reference no: EM132957432
Absorption and variable costing income statements
During the first month of operations ended August 31, Kodiak Fridgeration Company manu-factured 80,000 mini refrigerators, of which 72,000 were sold. Operating data for the month are summarized as follows:
Sales .................................................................. $10,800,000
Manufacturing costs:
Direct materials ...................................................... $6,400,000
Direct labor ......................................................... $1,600,000
Variable manufacturing cost ..................... $1,280,000
Fixed manufacturing cost ................................. $320,000 $9,600,000
Selling and administrative expenses:
Variable ............................................................. $1,080,000
Fixed ................................................................ $ 180,000 $1,260,000
Instructions
Problem 1. Prepare an income statement based on the absorption costing concept.
Problem 2. Prepare an income statement based on the variable costing concept.
Problem 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).
|
Make an analysis to decide whether company cars should kept
: Make an analysis to decide whether company cars should be kept for 3, 4, or 5 years before being replaced with new ones
|
|
Difference between induction policies and procedures
: Identify and describe the difference between induction policies and procedures available within most organisations
|
|
What is estimated cost of raw materials purchases for july
: If 101,500 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
|
|
Compute the number of tickets funday park must sell
: Fixed costs are $325,000 per month. Compute the contribution margin per unit and the number of tickets Funday Park must sell to break even.
|
|
Prepare an income statement based on the absorption costing
: Kodiak Fridgeration Company manu-factured 80,000 mini refrigerators, Prepare an income statement based on the absorption costing concept.
|
|
How much would absorption costing income from operations
: How much would absorption costing income from operations differ between a plan to produce 10,000 units and a plan to produce 15,000 units?
|
|
Determine income from operations for marley company
: Determine income from operations for Marley Company for the month of March. Variable selling and administrative expenses $238,100
|
|
Types of training approaches
: Consider a clothing business, such as Beechtree, that is well-established and has earned the confidence of its customers via the efforts of its employees and ma
|
|
Assessing the effectiveness of whs management practices
: Assessing the effectiveness of WHS management practices and amendments as a result where required.
|