FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows:
1
|
Sales
|
|
$8,800,000.00
|
2
|
|
|
|
3
|
Direct materials
|
$3,360,000.00
|
|
4
|
Direct labor
|
1,344,000.00
|
|
5
|
Variable manufacturing cost
|
816,000.00
|
|
6
|
Fixed manufacturing cost
|
528,000.00
|
6,048,000.00
|
7
|
Selling and administrative expenses:
|
|
|
8
|
Variable
|
$528,000.00
|
|
9
|
Fixed
|
352,000.00
|
880,000.00
|
Required: | |
1. | Prepare an income statement based on the absorption costing concept.* |
2. | Prepare an income statement based on the variable costing concept.* |
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