Tudor Manufacturing Co. has prepared the following income statement based on the variable cost concept on June
Question:
Tudor Manufacturing Co. has prepared the following income statement based on the variable cost concept on June 30, 2016, the end of its first month of operation:
Tudor İmalat A.Ş. |
Income Statement - Variable Costing |
For the Month Ended 30 June 2016 |
1 | Sales (405,000 units) | 6.385.000,00 $ | |
2 | Variable cost of goods sold: | ||
3 | Variable cost of goods produced (500,000 units × $12 per unit) | 6.000.000,00 $ | |
4 | Less finished inventory (95,000 units × $12 per unit) | 1.140.000,00 | |
5 | variable cost of goods sold | 4.860.000,00 | |
6 | Production margin | 1.525.000,00 $ | |
7 | Variable selling and administrative expenses | 88.000,00 | |
8 | Contribution margin | 1.437.000,00 $ | |
9 | Fixed costs: | ||
10 | Fixed production costs | 140.000,00 $ | |
11 | Fixed selling and administrative expenses | 68.000,00 | 208.000,00 |
12 | income from operations | 1.229.000,00 $ |
Necessary: | |
---|---|
A. | Prepare an absorption cost income statement. |
B. | Reconcile the $1,229,000 variable cost revenue from operations with the absorption cost revenue from the operations identified in (A) |
Accounting
ISBN: 978-1285743615
26th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac