The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials...

  

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The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.25 Direct Labor per Unit $1.50 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.75 Units Produced 40,000 Units Sold 34,000 Sales Price $12 Fixed Manufacturing Expenses Fixed Selling and Administration Expenses Prepare an income statement under variable costing method. $120,000 $21,000 Prepare an income statement under variable costing method. Appliance Apps Income Statement 47 100 Prepare a reconciliation to the income under the absorption method. Appliance Apps Reconciliation The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.25 Direct Labor per Unit $1.50 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.75 Units Produced 40,000 Units Sold 34,000 Sales Price $12 Fixed Manufacturing Expenses Fixed Selling and Administration Expenses Prepare an income statement under variable costing method. $120,000 $21,000 Prepare an income statement under variable costing method. Appliance Apps Income Statement 47 100 Prepare a reconciliation to the income under the absorption method. Appliance Apps Reconciliation

Answer rating: 100% (QA)

To prepare the income statement under the variable costing method we will follow these steps 1 Calculate the total variable manufacturing cost per uni... View the full answer