The variable-costing income statement for Jackson Company for last year is as follows: Sales (5,000 units)                                                        $ 105,200 Variable expenses: Cost of goods sold           $29,900 Selling(10% of sales)      10,520                                  40,420 Contribution margin                                                     64,780 Fixed expenses: Manufacturing overhead    24,600 administrative                       14,600                               39,200 Operating Income                                                           25,580 Selected data for last year concerning the operations of the company are as follows: Beginning inventory:  0 units Units produced:         9,000 units Manufacturing costs: Direct labor: 3.50 per unit Direct materials: 1.60 per unit Variable overhead: 1.20 per unit   1. Prepare an absorption costing income statement for last year

Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (39,000 units x $42.10 per unit) Cost of goods sold (39,000 units x $23 per unit) Gross margin Selling and administrative expenses Net operating income The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($306,000+ 51,000 units) Absorption costing unit product cost $ 1,641,900 897,000 744,900 448,500 $ 296,400 Required 1 Required 2 $10 4 3 6 $23 Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on…

Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows: Sales (75,000 units)         $4,500,000 Production costs (80,000 units)           Direct material         1,320,000 Direct labor         1,080,000 Manufacturing overhead:           Variable         816,000 Fixed         480,000 Operating expenses:           Variable         252,000 Fixed         360,000 Depreciation on equipment         90,000 Real estate taxes         27,000 Personal property taxes (inventory & equipment)         43,200 Personnel department expenses         45,000   a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Absorption Costing Income Statement Sales…

A condensed income statement by product line for Crown Beverage Inc. indicated the following for King Cola for the past year: Sales $236,100 Cost of goods sold 112,000 Gross profit $124,100 Operating expenses 142,000 Loss from operations $(17,900) It is estimated that 13% of the cost of goods sold represents fixed factory overhead costs and that 21% of the operating expenses are fixed. Since King Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. Question Content Area a.  Prepare a differential analysis, dated March 3, to determine whether King Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero "0". Use a minus sign to indicate a loss. Differential AnalysisContinue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2)January 21   Continue KingCola (Alternative 1) Discontinue KingCola (Alternative 2) Differential Effecton Income(Alternative 2)…