Kissimmee Paint Co. reported the following data for the month of July. There were no beginning inventories
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Question:
Kissimmee Paint Co. reported the following data for the month of July. There were no beginning inventories and all units were completed (no work in process).
Selling and administrative expenses:
Variable???..$2 per unit sold
Fixed????..$39,000
In the month of July, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.
(a) Prepare a variable costing income statement.
(b) Prepare an absorption costing income statement.
(c) Briefly explain why there is a difference in income from operations between the two methods.
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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