Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. Theabsorption costing income statement for this year follows.Income Statement (Absorption Costing)Sales (80,000 units × $45 per unit)Cost of goods soldGross profitSelling and administrative expensesIncome$3,600,0002,000,0001,600,000560,000$ 1,040,000Additional Informationa. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling andadministrative expenses.b. The company's product cost of $25 per unit consists of the following.Direct materialsDirect laborVariable overheadFixed overhead ($700,000 / 100,000 units)$ 3 per unit$ 13 per unit$ 2 per unit$ 7 per unit Required:Prepare an income statement for the company under variable costing.TREZ CompanyIncome Statement (Variable Costing)

Variable costing system is one of costing system being used in business. Under this system, all…

Answered: Required: Prepare an income statement…

Required: Prepare an income statement for the company under variable costing. TREZ Company Income Statement (Variable Costing)

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 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The
absorption costing income statement for this year follows.
Income Statement (Absorption Costing)
Sales (80,000 units × $45 per unit)
Cost of goods sold
Gross profit
Selling and administrative expenses
Income
$3,600,000
2,000,000
1,600,000
560,000
$ 1,040,000
Additional Information
a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and
administrative expenses.
b. The company's product cost of $25 per unit consists of the following.
Direct materials
Direct labor
Variable overhead
Fixed overhead ($700,000 / 100,000 units)
$ 3 per unit
$ 13 per unit
$ 2 per unit
$ 7 per unit

Required:
Prepare an income statement for the company under variable costing.
TREZ Company
Income Statement (Variable Costing)

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