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: 1Sales $8,800,000.002Manufacturing costs: 3Direct materials$3,360,000.00 4Direct labor1,344,000.00 5Variable manufacturing cost816,000.00 6Fixed manufacturing cost528,000.006,048,000.007Selling and administrative expenses: 8Variable$528,000.00 9Fixed352,000.00880,000.00 Required:1.Prepare an income statement based on the absorption costing concept.*2.Prepare an income statement based on the variable costing concept.*

Compute the cost per unit produced.

Answered: During the first month of operations…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	Manufacturing costs:
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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