Symond Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per

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Symond Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per unit), variable overhead ($6 per unit), fixed manufacturing ($250,000), and fixed selling and administrative ($30,000). In October 2012, Symond produced 25,000 units and sold 20,000 at $50 each.

Instructions

(a) Prepare an absorption costing income statement.

(b) Prepare a variable costing income statement.

(c) Explain the difference in net income in the two income statements.


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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