Solution-Prepare the income statement using absorption

Prepare the income statement using absorption costing

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Reference no: EM132017047

Questions -

Q1. How does managerial and financial accounting differ in terms of the amount of detail presented and nonmonetary and monetary information?

Q2. Sivan Co. manufactures and sells one product. For the year, they started with no opening inventory; produced 100,000 units, but only sold 70,000 units. The selling price per each unit is $60.

The variable costs per unit were:

Direct materials - 7

Direct Labor - 6

Variable manufacturing overhead - 5

Variable selling and administrative - 6

Fixed costs per year:

Fixed manufacturing Overhead - $700,000

Fixed Selling and Administrative expenses - $300,000

(a) Prepare the Income Statement using Absorption Costing.

(b) Prepare the Income Statement using Variable Costing.

Reference no: EM132017047

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Prepare the income statement using absorption costing

Reference no: EM132017047

Reference no: EM132017047

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