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Prepare an income statement for the year ended December 31 through the gross profit for Baxter Company using the following information. Baxter Company sold 9,000 units at $130 per unit. Normal production is 9,400 units. (Do not round the fixed overhead rate computation when determining the fixed factory overhead volume variance. Enter favorable variances as negative numbers.)

Prepare an income statement for the year ended December 31 through the gross profit for Baxter Company using the following information. Baxter Company sold 9,000 units at $130 per unit. Normal production is 9,400 units. (Do not round the fixed overhead rate computation when determining the fixed factory overhead volume variance. Enter favorable variances as negative numbers.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Prepare an income statement for the year ended December 31 through the gross profit for Baxter Company using the following information. Baxter Company sold 9,000 units at $130 per unit. Normal production is 9,400 units. (Do not round the fixed overhead rate computation when determining the fixed factory overhead volume variance. Enter favorable variances as negative numbers.) Standard: 5 yards per unit at $6.30 per yard Standard: 2.50 hours per unit at $15.00 Standard: variable overhead $1.05 per unit Standard: fixed overhead $211,500 (budgeted and actual amount) Baxter Company Income Statement Through Gross Profit For the Year Ended December 31 Sales Cost of goods sold-at standard Gross profit-at standard Less variance adjustments to gross profit-at standard: Direct materials price Direct materials quantity Direct labor rate Actual yards used: 45,760 yards at $6.25 per yard Actual hours worked: 22,250 at $14.90 per hour Actual total factory overhead: $238,000 E Unfavorable Favorable
Transcribed Image Text:Prepare an income statement for the year ended December 31 through the gross profit for Baxter Company using the following information. Baxter Company sold 9,000 units at $130 per unit. Normal production is 9,400 units. (Do not round the fixed overhead rate computation when determining the fixed factory overhead volume variance. Enter favorable variances as negative numbers.) Standard: 5 yards per unit at $6.30 per yard Standard: 2.50 hours per unit at $15.00 Standard: variable overhead $1.05 per unit Standard: fixed overhead $211,500 (budgeted and actual amount) Baxter Company Income Statement Through Gross Profit For the Year Ended December 31 Sales Cost of goods sold-at standard Gross profit-at standard Less variance adjustments to gross profit-at standard: Direct materials price Direct materials quantity Direct labor rate Actual yards used: 45,760 yards at $6.25 per yard Actual hours worked: 22,250 at $14.90 per hour Actual total factory overhead: $238,000 E Unfavorable Favorable
Baxter Company Income Statement Through Gross Profit For the Year Ended December 31 Sales Cost of goods sold-at standard Gross profit-at standard Less variance adjustments to gross profit-at standard: Direct materials price Direct materials quantity Direct labor rate Direct labor time Factory overhead controllable Factory overhead volume Net variance from standard cost-unfavorable Gross profit Unfavorable Favorable 8 30
Transcribed Image Text:Baxter Company Income Statement Through Gross Profit For the Year Ended December 31 Sales Cost of goods sold-at standard Gross profit-at standard Less variance adjustments to gross profit-at standard: Direct materials price Direct materials quantity Direct labor rate Direct labor time Factory overhead controllable Factory overhead volume Net variance from standard cost-unfavorable Gross profit Unfavorable Favorable 8 30
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