FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 | 0 |
| Units Produced | 24,000 |
| Units Sold | 19,200 |
| Selling Price per Unit | $146 |
| Variable Sales and Administration Expenses | $5 |
| Fixed Sales and Administration Expenses | $931,200 |
| Direct Material Cost per Unit | $25 |
| Direct Labor Cost per Unit | $11 |
| Variable |
$4 |
| Fixed Manufacturing Overhead Cost per Month | $940,800 |
Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.
Transcribed Image Text: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
Sales
$ 2,803,200
Cost of Goods Sold:
Beginning Inventory
1,900,800 X
Cost of Goods Manufactured
380,160 | Х
Cost of Goods Available for Sale
1,520,640 X
Ending Inventory
1,282,560
Total Cost of Goods Sold
Gross Profit
Sales and Administrative Expenses:
Variable
Fixed
Total Fixed Sales and Administrative Expenses
Net Operating Income
Transcribed Image Text:Beginning Inventory
Cost of Goods Manufactured
$
Cost of Goods Available for Sale
Ending Inventory
Total Cost of Goods Sold
Gross Contribution Margin
Sales and Administrative Expenses:
Variable
Contribution Margin
Fixed Sales and Administrative Expenses
Fixed Manufacturing
Total Fixed Sales and Administrative Expenses
Net Operating Income
Feedback
Prepare a reconciliation between the two statements.
Reconciliation
Net Income under Variable Costing
Add: Fixed Manufacturing Overhead Deferred
Net Income under Absorption
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- 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 0Units Produced 24,000Units Sold 19,200Selling Price per Unit $146Variable Sales and Administration Expenses $4Fixed Sales and Administration Expenses $936,000Direct Material Cost per Unit $26Direct Labor Cost per Unit $10Variable Manufacturing Overhead Cost per Unit $2Fixed Manufacturing Overhead Cost per Month $938,400 -Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. -Prepare an income statement under the variable costing method. If an amount box does not require an entry, leave it blank. -Prepare a reconciliation between the two statements.arrow_forwardPlease do not give solution in image format thankuarrow_forwardPlease do not give solution in image format thankuarrow_forward
- Please do not give solution in image format thankuarrow_forwardAppliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 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 $11 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 has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 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…arrow_forwardPlease do not give solution in image format thankuarrow_forward
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