During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 165,000 mini refrigerators, of which 150,000 were sold. Operating data for the month are summarized as follows:1Sales $11,250,000.002Manufacturing costs: 3Direct materials$1,980,000.00 4Direct labor4,290,000.00 5Variable manufacturing cost412,500.00 6Fixed manufacturing cost2,475,000.009,157,500.007Selling and administrative expenses: 8Variable$450,000.00 9Fixed1,125,000.001,575,000.00Required:1.Prepare an income statement based on the absorption costing concept
During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 165,000 mini refrigerators, of which 150,000 were sold. Operating data for the month are summarized as follows:1Sales $11,250,000.002Manufacturing costs: 3Direct materials$1,980,000.00 4Direct labor4,290,000.00 5Variable manufacturing cost412,500.00 6Fixed manufacturing cost2,475,000.009,157,500.007Selling and administrative expenses: 8Variable$450,000.00 9Fixed1,125,000.001,575,000.00Required:1.Prepare an income statement based on the absorption costing concept
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 165,000 mini refrigerators, of which 150,000 were sold. Operating data for the month are summarized as follows:1Sales $11,250,000.002Manufacturing costs: 3Direct materials$1,980,000.00 4Direct labor4,290,000.00 5Variable manufacturing cost412,500.00 6Fixed manufacturing cost2,475,000.009,157,500.007Selling and administrative expenses: 8Variable$450,000.00 9Fixed1,125,000.001,575,000.00Required:1.Prepare an income statement based on the absorption costing concept
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