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Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price Required: 1. Prepare an income statement for the year using variable casting. ales Less: Variable expenses Direct materials Direct labor Contribution margin Less: Fixed expenses (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) SIMS COMPANY Income Statement (Variable Costing) Fixed selling and administrative expenses Fixed averhead Income (loss) $40 per unit 560 per unit $30 per unit $7,000,000 per year $11 per unit $4,250,000 per year 100,000 units 70,000 units $350 per unit SIMS COMPANY Income Statement (Absorption Casting) Cost of goods sold Gross profit Selling and administrative expenses Income $2,800,000 4,200,000 4,250,000 7,000,000 $24,500,000 2. Prepare an income statement for the year us ing absorption costing. (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) $24,500,000 7,000,000 17,500,000 11,250,000 56,250,000

Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price Required: 1. Prepare an income statement for the year using variable casting. ales Less: Variable expenses Direct materials Direct labor Contribution margin Less: Fixed expenses (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) SIMS COMPANY Income Statement (Variable Costing) Fixed selling and administrative expenses Fixed averhead Income (loss) $40 per unit 560 per unit $30 per unit $7,000,000 per year $11 per unit $4,250,000 per year 100,000 units 70,000 units $350 per unit SIMS COMPANY Income Statement (Absorption Casting) Cost of goods sold Gross profit Selling and administrative expenses Income $2,800,000 4,200,000 4,250,000 7,000,000 $24,500,000 2. Prepare an income statement for the year us ing absorption costing. (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) $24,500,000 7,000,000 17,500,000 11,250,000 56,250,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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Sims Company began operations on January 1. Its cost and sales information for this year follow. $40 per unit $60 per unit $30 per unit $7,000,000 per year $11 per unit $4,250,000 per year 100,000 units 70,000 units $350 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expens es Units produced Units sold Sales price Required: 1. Prepare an income statement for the year using variable costing. (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) SIMS COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Direct materials Direct labor Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Fixed averhead Income (loss) SIMS COMPANY Income Statement (Absorption Costing) $2,800,000 4,200,000 Sales Cost of goods sold Grass profit Selling and administrative expenses Income 4,250,000 7,000,000 $24,500,000 2. Prepare an income statement for the year us ing absorption costing. (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) $24,500,000 7,000,000 17,500,000 11,250,000 $6,250,000
Transcribed Image Text:Sims Company began operations on January 1. Its cost and sales information for this year follow. $40 per unit $60 per unit $30 per unit $7,000,000 per year $11 per unit $4,250,000 per year 100,000 units 70,000 units $350 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expens es Units produced Units sold Sales price Required: 1. Prepare an income statement for the year using variable costing. (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) SIMS COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Direct materials Direct labor Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Fixed averhead Income (loss) SIMS COMPANY Income Statement (Absorption Costing) $2,800,000 4,200,000 Sales Cost of goods sold Grass profit Selling and administrative expenses Income 4,250,000 7,000,000 $24,500,000 2. Prepare an income statement for the year us ing absorption costing. (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) $24,500,000 7,000,000 17,500,000 11,250,000 $6,250,000
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