Variable and Absorption Costing-Service CompanyLawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $170. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $19.00 Fixed cost $100,000 Marketing, general and administrative Variable cost (per service contract completed) $20.00 Administrative expenses (fixed- per month) $42,000 During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management.Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Fixed Cost Answer Less: Ending Inventory Answer Cost of Goods Sold Answer Answer Answer Answer Answer Administrative expense Answer Net Income Answer b. Calculate reported income for the bank.Do not use negative signs with any answers. Variable Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Answer Answer Variable cost of goods sold Answer Answer Answer Answer Answer Fixed costs: Answer Answer Administrative Expense Answer Total Fixed Cost Answer Net Income Answer
Variable and Absorption Costing-Service CompanyLawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $170. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $19.00 Fixed cost $100,000 Marketing, general and administrative Variable cost (per service contract completed) $20.00 Administrative expenses (fixed- per month) $42,000 During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management.Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Fixed Cost Answer Less: Ending Inventory Answer Cost of Goods Sold Answer Answer Answer Answer Answer Administrative expense Answer Net Income Answer b. Calculate reported income for the bank.Do not use negative signs with any answers. Variable Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable Costs Answer Answer Answer Variable cost of goods sold Answer Answer Answer Answer Answer Fixed costs: Answer Answer Administrative Expense Answer Total Fixed Cost Answer Net Income Answer
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Question
Variable and Absorption Costing-Service Company
Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $170. The variable and fixed cost data are as follows:
Direct labor | $100.00 | |||
Variable cost per unit | $19.00 | |||
Fixed cost | $100,000 | |||
Marketing, general and administrative | ||||
Variable cost (per service contract completed) | $20.00 | |||
Administrative expenses (fixed- per month) | $42,000 |
During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year.
a. Calculate reported income for management.
Do not use negative signs with any answers.
Absorption Costing Income Statement | ||||
---|---|---|---|---|
Sales | Answer
|
|||
Cost of Goods Sold: | ||||
Beginning Inventory | Answer
|
|||
Variable Costs | Answer
|
|||
Fixed Cost | Answer
|
|||
Less: Ending Inventory | Answer
|
|||
Cost of Goods Sold | Answer
|
|||
Answer
|
Answer
|
|||
Answer
|
Answer
|
|||
Administrative expense | Answer
|
|||
Net Income | Answer
|
b. Calculate reported income for the bank.
Do not use negative signs with any answers.
Variable Costing Income Statement | ||||
---|---|---|---|---|
Sales | Answer
|
|||
Cost of Goods Sold: | ||||
Beginning Inventory | Answer
|
|||
Variable Costs | Answer
|
|||
Answer | Answer
|
|||
Variable cost of goods sold | Answer
|
|||
Answer | Answer
|
|||
Answer | Answer
|
|||
Fixed costs: | ||||
Answer | Answer
|
|||
Administrative Expense | Answer
|
|||
Total Fixed Cost | Answer
|
|||
Net Income | Answer
|
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