Question: Please help with the ones I got wrong! Exercise 06-6 Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing

Please help with the ones I got wrong!

Please help with the ones I got wrong! Exercise 06-6 Absorption costingincome statement LO P2 Hayek Bikes prepares the income statement under variablecosting for its managerial reports, and it prepares the income statement under

Exercise 06-6 Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 400 bikes were produced and 240 were sold; this left 160 bikes in ending inventory. The income statement information under variable costing follows. Sales (240 x $1,750) Variable product cost (240 x $675) Variable selling and administrative expenses (240 x $65) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 420,000 162,000 15,600 242,400 72,000 95,000 $ 75,400 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement Sales 420,000 Less: Cost of goods sold Variable product costs $ 162,000 Fixed overhead costs 43,200 205,200 625,200 Cost of goods sold Gross margin Selling general and administrative expenses Variable selling and administrative expenses Fixed selling and administrative costs $ 15,600 95,000 110,600 Total selling general and administrative expenses Net income (loss) $ 735,800 X Net income under absorption costing is higher than net income under variable costing by: 660,400 Number of units added to(subtracted from) inventory 160 $ 4,128 X Fixed overhead cost per unit Fixed costs added to inventory $ 660,480 X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = 160 units $ 4,128 X fixed overhead per unit.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!