On July 31, the end of the first month or oper Sales (18,000 units) Cost of goods sold: Cost of goods manufactured Less ending inventory (4,000 units) Cost of goods sold Gross profit Selling and administrative expenses Income from operations $792,000 144,000 epared the following inc $990,000 648,000 $342,000 103,000 $239,000 a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $66,000 and the variable selling and administrative exp $47,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:
Sales (18,000 units)
Cost of goods sold:
Cost of goods manufactured
Less ending inventory (4,000 units)
Cost of goods sold
Gross profit
Selling and administrative expenses
Income from operations
Rhys Company
Income Statement-Variable Costing
For the Month Ended July 31
Variable cost of goods sold:
a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $66,000 and the variable selling and administrative expenses we
$47,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.
Fixed costs:
$792,000
144,000
0000
$990,000
648,000
$342,000
103,000
$239,000
Transcribed Image Text:On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (18,000 units) Cost of goods sold: Cost of goods manufactured Less ending inventory (4,000 units) Cost of goods sold Gross profit Selling and administrative expenses Income from operations Rhys Company Income Statement-Variable Costing For the Month Ended July 31 Variable cost of goods sold: a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $66,000 and the variable selling and administrative expenses we $47,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Fixed costs: $792,000 144,000 0000 $990,000 648,000 $342,000 103,000 $239,000
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