Topple company produces a single product operating data for

Reference no: EM13590583

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: EM13590583

Questions Cloud

Mcmichael publishers inc collects 10 of its sales on : mcmichael publishers inc. collects 10 of its sales on account in the month of the sale and 90 in the month following

An optical pin is placed midway between two parallel plane : an optical pin is placed midway between two parallel plane mirrors m1 and m2 which are 10cm apart. how far from the

The lessor used an implicit interest rate of 10 percent in : on january 1 2010 james company leased a machine for 10 years that could have been purchased for 100000. the lessor

Assuming that the inductance has a value of 8 x 10-7 h : question fm radio stations use radio waves with frequencies from 88.0 to 108 mhz to broadcast their signals. assuming

Topple company produces a single product operating data for : topple company produces a single product. operating data for the company and its absorption costing income statement

A bond has a par value of 1000 coupon interest rate of 4 : a bond has a par value of 1000 coupon interest rate of 4 maturity of 15 years and yield to maturity of 5. please

A laser emits a narrow beam of light the radius of the beam : question a laser emits a narrow beam of light. the radius of the beam is 1.5 mm and the power is 2.9 mw. what is the

The team still has 45 games to play how many of the : a basketball team won 50 games of 75 played. the team still has 45 games to play. how many of the remaning games must

Costs added during period direct materials 119637 direct : department g had 3453 units one-third completed at the beginning of the period 12515 units were completed during the

User Account

All Pages