During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 46,000 mini refrigerators, of which 42,000 were sold. Operating data for the month are summarized as follows: 1Sales $9,660,000.002Manufacturing costs: 3Direct materials$3,220,000.00 4Direct labor1,380,000.00 5Variable manufacturing cost828,000.00 6Fixed manufacturing cost506,000.005,934,000.007Selling and administrative expenses: 8Variable$756,000.00 9Fixed294,000.001,050,000.00 Required:1.Prepare an income statement based on the absorption costing concept.*2.Prepare an income statement based on the variable costing concept.*3.Explain the reason for the difference in the amount of operating income reported in (1) and (2). * Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative.Labels August 31 Cost of goods sold Fixed costs For the Month Ended August 31 Variable cost of goods sold Amount Descriptions Contribution margin Contribution margin ratio Cost of goods manufactured Fixed manufacturing costs Fixed selling and administrative expenses Gross profit Operating income Inventory, August 31 Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Total cost of goods sold Total fixed costs Total variable cost of goods sold Variable cost of goods manufactured Variable selling and administrative expenses b My Questions bartlebyXC During The First Month Of Opera Xme teach Xengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inprCalculatorPrint ItemShow Me HoweBookVariableAbsorption Costing Income StatementHEETA...2. Prepa1. Prepare an income statement based on the absorption costing concept. Be sure to complete the statementDescriptheading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answerpositive.choices for text entries. A colon () will automatically appear if it is required. Enter amounits as positive numbersunless the amount is a calculation that results in a negative amount. For example: Net loss should be negativeKodiak Fridgeration CompanyAbsorption Costing Income Statement1(Label)2 (Labe2 (Label)3456779 (Label10111213Check My Work8 more Check My Work uses remaining.All work saved.LL-LAB2-T-01 nent-take&inprogress-falseFrVariable Costing Income Statement2. Prepare an income statement based on the variable costing concept. Be sure to complete the statement heading. Refer to the list of Labels and AmountentDescriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. Enter amounts aspositive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative.berstive.Kodiak Fridgeration CompanyVariable Costing Income Statement(Label)2 (Label)9 (Label)10111213NextPreviousSubmit Assignment for GradingSave and ExitAll work saved.10:09 PM10/29/2019LL

Income statement is a financial statement which is prepared to show the net loss or profit for the…

b My Questions bartleby X C During The First Month Of Opera X me teach X engagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inpr Calculator Print Item Show Me How eBook Variable Absorption Costing Income Statement HEETA... 2. Prepa 1. Prepare an income statement based on the absorption costing concept. Be sure to complete the statement Descript heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer positive. choices for text entries. A colon () will automatically appear if it is required. Enter amounits as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative Kodiak Fridgeration Company Absorption Costing Income Statement 1 (Label) 2 (Labe 2 (Label) 3 4 5 6 7 7 9 (Label 10 11 12 13 Check My Work 8 more Check My Work uses remaining. All work saved. LL -LAB2-T-01 nent-take&inprogress-false Fr Variable Costing Income Statement 2. Prepare an income statement based on the variable costing concept. Be sure to complete the statement heading. Refer to the list of Labels and Amount ent Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. bers tive. Kodiak Fridgeration Company Variable Costing Income Statement (Label) 2 (Label) 9 (Label) 10 11 12 13 Next Previous Submit Assignment for Grading Save and Exit All work saved. 10:09 PM 10/29/2019 LL

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

100%

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 46,000 mini refrigerators, of which 42,000 were sold. Operating data for the month are summarized as follows:

1	Sales		$9,660,000.00
2	Manufacturing costs:
3	Direct materials	$3,220,000.00
4	Direct labor	1,380,000.00
5	Variable manufacturing cost	828,000.00
6	Fixed manufacturing cost	506,000.00	5,934,000.00
7	Selling and administrative expenses:
8	Variable	$756,000.00
9	Fixed	294,000.00	1,050,000.00

Required:

Prepare an income statement based on the absorption costing concept.*

Prepare an income statement based on the variable costing concept.*

Explain the reason for the difference in the amount of operating income reported in (1) and (2).

* Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative.

Labels
August 31
Cost of goods sold
Fixed costs
For the Month Ended August 31
Variable cost of goods sold
Amount Descriptions
Contribution margin
Contribution margin ratio
Cost of goods manufactured
Fixed manufacturing costs
Fixed selling and administrative expenses
Gross profit
Operating income
Inventory, August 31
Loss from operations
Manufacturing margin
Planned contribution margin
Sales
Sales mix
Selling and administrative expenses
Total cost of goods sold
Total fixed costs
Total variable cost of goods sold
Variable cost of goods manufactured
Variable selling and administrative expenses

b My Questions bartleby
X
C During The First Month Of Opera X
me teach X
engagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inpr
Calculator
Print Item
Show Me How
eBook
Variable
Absorption Costing Income Statement
HEETA...
2. Prepa
1. Prepare an income statement based on the absorption costing concept. Be sure to complete the statement
Descript
heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer
positive.
choices for text entries. A colon () will automatically appear if it is required. Enter amounits as positive numbers
unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative
Kodiak Fridgeration Company
Absorption Costing Income Statement
1
(Label)
2 (Labe
2 (Label)
3
4
5
6
7
7
9 (Label
10
11
12
13
Check My Work
8 more Check My Work uses remaining.
All work saved.
LL
-LAB2-T-01

nent-take&inprogress-false
Fr
Variable Costing Income Statement
2. Prepare an income statement based on the variable costing concept. Be sure to complete the statement heading. Refer to the list of Labels and Amount
ent
Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. Enter amounts as
positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative.
bers
tive.
Kodiak Fridgeration Company
Variable Costing Income Statement
(Label)
2 (Label)
9 (Label)
10
11
12
13
Next
Previous
Submit Assignment for Grading
Save and Exit
All work saved.
10:09 PM
10/29/2019
LL

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 6 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.