On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 Fixed 10,500 Total $45,500 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 $fill in the blank 9631bb05c073fa8_2 Cost of goods sold: $fill in the blank 9631bb05c073fa8_4 fill in the blank 9631bb05c073fa8_6 fill in the blank 9631bb05c073fa8_8 $fill in the blank 9631bb05c073fa8_10 fill in the blank 9631bb05c073fa8_12 Operating income $fill in the blank 9631bb05c073fa8_13 b. Prepare an income statement using variable costing. Townsend Co. Variable Costing Income Statement For the Month Ended January 31 $fill in the blank ca886effcf80fff_2 Variable cost of goods sold: $fill in the blank ca886effcf80fff_4 fill in the blank ca886effcf80fff_6 fill in the blank ca886effcf80fff_8 $fill in the blank ca886effcf80fff_10 fill in the blank ca886effcf80fff_12 $fill in the blank ca886effcf80fff_14 Fixed costs: $fill in the blank ca886effcf80fff_16 fill in the blank ca886effcf80fff_18 fill in the blank ca886effcf80fff_19 Operating income $fill in the blank ca886effcf80fff_20
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units Production 50,000 Sales ($18 per unit) (42,000) Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $35,000 Fixed 10,500 Total $45,500 a. Prepare an income statement using absorption costing. Townsend Co. Absorption Costing Income Statement For the Month Ended January 31 $fill in the blank 9631bb05c073fa8_2 Cost of goods sold: $fill in the blank 9631bb05c073fa8_4 fill in the blank 9631bb05c073fa8_6 fill in the blank 9631bb05c073fa8_8 $fill in the blank 9631bb05c073fa8_10 fill in the blank 9631bb05c073fa8_12 Operating income $fill in the blank 9631bb05c073fa8_13 b. Prepare an income statement using variable costing. Townsend Co. Variable Costing Income Statement For the Month Ended January 31 $fill in the blank ca886effcf80fff_2 Variable cost of goods sold: $fill in the blank ca886effcf80fff_4 fill in the blank ca886effcf80fff_6 fill in the blank ca886effcf80fff_8 $fill in the blank ca886effcf80fff_10 fill in the blank ca886effcf80fff_12 $fill in the blank ca886effcf80fff_14 Fixed costs: $fill in the blank ca886effcf80fff_16 fill in the blank ca886effcf80fff_18 fill in the blank ca886effcf80fff_19 Operating income $fill in the blank ca886effcf80fff_20
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 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...
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Question
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:
Units | ||
Production | 50,000 | |
Sales ($18 per unit) | (42,000) | |
Inventory, January 31 | 8,000 | |
Variable | $575,000 | |
Fixed | 80,000 | |
Total | $655,000 | |
Selling and administrative expenses: | ||
Variable | $35,000 | |
Fixed | 10,500 | |
Total | $45,500 |
a. Prepare an income statement using absorption costing.
Townsend Co. | ||
Absorption Costing Income Statement | ||
For the Month Ended January 31 | ||
$fill in the blank 9631bb05c073fa8_2 | ||
Cost of goods sold: | ||
$fill in the blank 9631bb05c073fa8_4 | ||
fill in the blank 9631bb05c073fa8_6 | ||
fill in the blank 9631bb05c073fa8_8 | ||
$fill in the blank 9631bb05c073fa8_10 | ||
fill in the blank 9631bb05c073fa8_12 | ||
Operating income | $fill in the blank 9631bb05c073fa8_13 |
b. Prepare an income statement using variable costing.
Townsend Co. | ||
Variable Costing Income Statement | ||
For the Month Ended January 31 | ||
$fill in the blank ca886effcf80fff_2 | ||
Variable cost of goods sold: | ||
$fill in the blank ca886effcf80fff_4 | ||
fill in the blank ca886effcf80fff_6 | ||
fill in the blank ca886effcf80fff_8 | ||
$fill in the blank ca886effcf80fff_10 | ||
fill in the blank ca886effcf80fff_12 | ||
$fill in the blank ca886effcf80fff_14 | ||
Fixed costs: | ||
$fill in the blank ca886effcf80fff_16 | ||
fill in the blank ca886effcf80fff_18 | fill in the blank ca886effcf80fff_19 | |
Operating income | $fill in the blank ca886effcf80fff_20 |
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