2 eBook Rey Company's only product sells for $228 per unit. Data for its first year of operations follow. $ 32 per unit $ 40 per unit $ 12 per unit $385,000 per year. $ 30 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced and sold $ 224,000 per year 27,500 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing.
2 eBook Rey Company's only product sells for $228 per unit. Data for its first year of operations follow. $ 32 per unit $ 40 per unit $ 12 per unit $385,000 per year. $ 30 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced and sold $ 224,000 per year 27,500 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Prepare an income statement for the year using variable costing.
REY COMPANY
Income Statement (Variable Costing)
Income
REY COMPANY
Income Statement (Absorption Costing)
Sales
Cost of goods sold
Contribution margin
Selling and administrative expenses
Income
0
4
Transcribed Image Text:2
eBook
Rey Company's only product sells for $228 per unit. Data for its first year of operations follow.
$ 32 per unit
$ 40 per unit
$ 12 per unit
$385,000 per year.
$ 30 per unit
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Units produced and sold
$ 224,000 per year
27,500 units
1. Prepare an income statement for the year using absorption costing
2. Prepare an income statement for the year using variable costing.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare an income statement for the year using variable costing.
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