During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 46,000 mini refrigerators, of which 40,000 were sold. Operating data for the month are summarized as follows: 1 Sales 2 Manufacturing costs: 5 Direct materials 4 Direct labor 5 Variable manufacturing cost $8,800,000.00 $3,450,000.00 1,196,000.00 782,000.00 6 Fixed manufacturing cost 598,000.00 6,026,000.00 7 Selling and administrative expenses: 8 Variable $600,000.00 9 Fixed 320,000.00 920,000.00 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).

The following information pertains to the first year of operation for Crystal Cold Coolers Incorporated: Number of units produced Number of units sold Unit sales price 3,000 2,400 $ 350 $70 $ 55 Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit $ 13 $65 $ 26,400 $ 63,000 Fixed manufacturing overhead per unit ($195,000+3,000 units) Total variable selling expenses ($11 per unit sold) Total fixed general and administrative expenses Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year. Complete this question by entering your answers in the tabs below. Full Absorption Costing Variable Costing. Prepare Crystal Cold's full absorption costing income statement for the year. Crystal Cold Coolers Incorporated Full Absorption Costing Income Statement Sales Less: Cost of goods sold Gross margin Less: Non-manufacturing expenses Variable selling expense Fixed general and administrative…

Diego Company manufactures one product that is sold for $76 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 58,000 units and sold 54,000 units.   Variable costs per unit:   Manufacturing:   Direct materials $ 23 Direct labor $ 15 Variable manufacturing overhead $ 3 Variable selling and administrative $ 3 Fixed costs per year:   Fixed manufacturing overhead $ 1,160,000 Fixed selling and administrative expense $ 640,000     The company sold 40,000 units in the East region and 14,000 units in the West region. It determined that $320,000 of its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its…

Diego Company manufactures one product that is sold for $77 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 59,000 units and sold 54,000 units.   Variable costs per unit:   Manufacturing:   Direct materials $ 27 Direct labor $ 10 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year:   Fixed manufacturing overhead $ 1,298,000 Fixed selling and administrative expense $ 662,000   The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only…