The information below represents the beginning and ending inventory amounts along with the production and sales for
Question:
The information below represents the beginning and ending inventory amounts along with the production and sales for the month in umbrella units.
Beginning Inventory: 0 Umbrellas
Production: 80,000 Umbrellas
Sales: 60,000 Umbrellas
Ending Inventory: 20,000 Umbrellas
Using the information provided above and the costs and sales information provided in Section I, complete the following in the Hampshire Company Spreadsheet in order to assist you in responding to all components of Section II:
- Prepare the variable costing income statement.
- Prepare the absorption costing income statement.
I tried the Variable Costing Income Statement, not sure I did it correctly. Looking for clarification on that and help on the Absorption Costing IS.
Attached are pictures of everything completed (including my attempt at the VC IS) prior to this question.
Introduction to Operations and Supply Chain Management
ISBN: 978-0132747325
3rd edition
Authors: Cecil B. Bozarth, Robert B. Handfield