Manufacturing costs in February 1 beginning inventory: Variable Fixed Cost 4,800 $40.00 $192,000 4,800 15.00 $55.00...

 

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Manufacturing costs in February 1 beginning inventory: Variable Fixed Cost 4,800 $40.00 $192,000 4,800 15.00 $55.00 72,000 $264,000 Total Manufacturing costs in February: Variable Fixed Total 48,000 $40.00 $1,920,000 48,000 16.50 792,000 $56.50 $2,712,000 Selling and administrative expenses in February: Variable 52,800 $19.50 $1,029,600 Fixed 52,800 7.00 369,600 Total $26.50 $1,399,200 a. Prepare an income statement according to the absorption costing concept for the month ending February 28. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Line Item Description Sales A Cost of goods sold: Beginning inventory Cost of goods manufactured Total cost of goods sold Gross profit Selling and administrative expenses Operating income Feedback Amount Amount Check My Work a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable b. Prepare an income statement according to the variable costing concept for the month ending February 28. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Line Item Description Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin 4 Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Check My Work V Amount Amount 00 Manufacturing costs in February 1 beginning inventory: Variable Fixed Cost 4,800 $40.00 $192,000 4,800 15.00 $55.00 72,000 $264,000 Total Manufacturing costs in February: Variable Fixed Total 48,000 $40.00 $1,920,000 48,000 16.50 792,000 $56.50 $2,712,000 Selling and administrative expenses in February: Variable 52,800 $19.50 $1,029,600 Fixed 52,800 7.00 369,600 Total $26.50 $1,399,200 a. Prepare an income statement according to the absorption costing concept for the month ending February 28. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Line Item Description Sales A Cost of goods sold: Beginning inventory Cost of goods manufactured Total cost of goods sold Gross profit Selling and administrative expenses Operating income Feedback Amount Amount Check My Work a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable b. Prepare an income statement according to the variable costing concept for the month ending February 28. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Line Item Description Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin 4 Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Check My Work V Amount Amount 00

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