Exercise 11-13A (Algo) Prepare an income statement using the contribution margin approach LO 11-3 AJ Manufacturing Company incurred $56,000 of fixed product cost and $44,800 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17,800 of fixed and $14,200 of variable selling and administrative costs. The company sold all of the units it produced for $184,000. Required Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). Prepare an income statement using the contribution margin approach.
Exercise 11-13A (Algo) Prepare an income statement using the contribution margin approach LO 11-3 AJ Manufacturing Company incurred $56,000 of fixed product cost and $44,800 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17,800 of fixed and $14,200 of variable selling and administrative costs. The company sold all of the units it produced for $184,000. Required Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). Prepare an income statement using the contribution margin approach.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 11-13A (Algo) Prepare an income statement using the contribution margin approach LO 11-3
AJ Manufacturing Company incurred $56,000 of fixed product cost and $44,800 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17,800 of fixed and $14,200 of variable selling and administrative costs. The company sold all of the units it produced for $184,000.
Required
- Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).
- Prepare an income statement using the contribution margin approach.
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