Question: can someone help me with this question please Instructions On July 31, 2016, the end of the first month of operations, Rhys Company prepared the




Instructions On July 31, 2016, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (91,000 units) 2 Cost of goods sold: Rhys Company Income Statement-Absorption Costing For the Month End July 31, 2016 Cost of goods manufactured i Less ending inventory (25,000 units) Cost of goods sold Gross profit Selling and administrative expenses Income from operations $2.784,000.00 600,000.00 $4,208.750.00 2,184,000.00 $2,024,750.00 282,000.00 $1,742,750.00 Previous Income from operations $1,742,750.00 Required: A. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $139,200 and the variable selling and administrative expenses were $109,200. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" and colons will automatically appear if it is required. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. B. Reconcile the absorption costing income from operations of $1,742.750 with the variable costing income from operations determined in (A) Check My Work Save and Exit Pre Submi Income Statement A Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $139,200 and the variable selling and administrative expenses were $109,200. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Less" or "Plus" and colons will automatically appear if it is required. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. 7 Labe Rhys Company Income Statement- Variable Costing For the Month Ended July 31, 2016 Income Statement 1 10 Labels and Amount Descriptions #R (Label) (Label) Check My Work $4,208,750.00 Previous Next Income statement Reconciliation B. Reconcile the absorption costing income from operations of $1,742,750 with the variable costing income from operations previously determined. Rhys Company Income from Operations-Absorption vs. Variable Costing For the Month Ended July 31, 2016 Absorption costing income from operations 7 Variable costing income from operations Difference
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
