Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Fixed Manufacturing Overhead Cost per Month $977,500
Prepare an income statement under the absorption
method. If an amount box does not require an entry, leave
it blank,
Appliance Apps
Income Statement: Absorption
Cost of Goods Sold:
Total Cost of Goods Sold
Sales and Administrative Expenses:
Variable
Fixed
Prepare an income statement under the variable costing
method. If an amount box does not require an entry, leave
it blank.
Appliance Apps
Income Statement: Variable
Cost of Goods Sold:
Total Cost of Goods Sold
Sales and Administrative Expenses:
Variable
Prepare a reconciliation between the two statements.
Reconciliation
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Transcribed Image Text:Fixed Manufacturing Overhead Cost per Month $977,500 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank, Appliance Apps Income Statement: Absorption Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable Fixed Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Variable Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable Prepare a reconciliation between the two statements. Reconciliation
Appliance Apps has the following costs associated with its
production and sale of devices that allow appliances to
receive commands from cell phones.
Beginning Inventory
Units Produced
25,000
Units Sold
20,000
Selling Price per Unit
$146
Variable Sales and Administration Expenses
$4
Fixed Sales and Administration Expenses
$975,000
Direct Material Cost per Unit
$26
Direct Labor Cost per Unit
$1
Variable Manufacturing Overhead Cost per Unit
$3
Fixed Manufacturing Overhead Cost per Month $977,500
Prepare an income statement under the absorption
method. If an amount box does not require an entry, leave
it blank.
Appliance Apps
Income Statement: Absorption
Cost of Goods Sold:
Total Cost of Goods Sold
Sales and Administrative Expenses:
Variable
Fixed
Prepare an income statement under the variable costing
method. If an amount box does not require an entry, leave
it blank.
Appliance Apps
Income Statement: Variable
Cost of Goods Sold:
Total Cost of Goods Sold
Sales and Administrative Expenses:
Variable
expand button
Transcribed Image Text:Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory Units Produced 25,000 Units Sold 20,000 Selling Price per Unit $146 Variable Sales and Administration Expenses $4 Fixed Sales and Administration Expenses $975,000 Direct Material Cost per Unit $26 Direct Labor Cost per Unit $1 Variable Manufacturing Overhead Cost per Unit $3 Fixed Manufacturing Overhead Cost per Month $977,500 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Absorption Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable Fixed Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Variable Cost of Goods Sold: Total Cost of Goods Sold Sales and Administrative Expenses: Variable
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