Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 each. At year-end, the company reported the following income statement Information using absorption costing. Sales (775x $1,025) Cost of goods sold (775 x $475) Gross profit Selling and administrative expenses Income Additional Information $ 794,375 368,125 426,250 240,000 $ 186,250 a. Product cost per kayak under absorption costing totals $475, which consists of $375 in direct materials, direct labor, and variable overhead costs and $100 In fixed overhead cost. Fixed overhead of $100 per unit is based on $102,500 of fixed overhead per year divided by 1,025 kayaks produced. b. The $240,000 in selling and administrative expenses consists of $105,000 that is variable and $135,000 that is fixed. Prepare an income statement for the current year under variable costing. KENZI Income Statement (Variable Costing) Sales S 794,375 Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Fixed overhead Income Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 each. At year-end, the company reported the following income statement Information using absorption costing. Sales (775x $1,025) Cost of goods sold (775 x $475) Gross profit Selling and administrative expenses Income Additional Information $ 794,375 368,125 426,250 240,000 $ 186,250 a. Product cost per kayak under absorption costing totals $475, which consists of $375 in direct materials, direct labor, and variable overhead costs and $100 In fixed overhead cost. Fixed overhead of $100 per unit is based on $102,500 of fixed overhead per year divided by 1,025 kayaks produced. b. The $240,000 in selling and administrative expenses consists of $105,000 that is variable and $135,000 that is fixed. Prepare an income statement for the current year under variable costing. KENZI Income Statement (Variable Costing) Sales S 794,375 Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Fixed overhead Income
Expert Answer:
Answer rating: 100% (QA)
KENZI Income Statement Variable Costing Sales794375 Less Var... View the full answer
Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
3 3 ATRAN222222222 16 7 88,804.14 78,880.41 < 3,552.17 * 239,553.58 13,693.08 * 253,246.66 *91,468.27*9,146.83 * 3,658.73 266,052.21 15,239.98 * 281,292.19 18 94,212.32 9,421.23 * 3,768.49 19...
-
What is the after-tax net income in each of the six years? 7. Calculate the change in working capital each year from the projected financial statements. 8. What is the terminal value of the project...
-
Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800 at a price of $1,050 each. At this first year-end the...
-
Question 4: Artistic Hand for engineering Services was formed on Jun 1, 2018. The following transactions took place during the month of Jun: I The owner invested $20,000 cash in business. 2 Hired an...
-
What is the relationship between compliance with legislative acts and valuing diversity? Explain.
-
Analysis of transactions and preparation of the income statement and balance sheet Refer to the information for Regaldo Department Stores as of January 31. 2008, in Problem 34 Regaldo Department...
-
Solve various time value of money scenarios (Learning Objectives 3, 4)} 1. Jeff just hit the jackpot in Las Vegas and won \(\$ 25,000\) ! If he invests it now at a \(12 \%\) interest rate, how much...
-
Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Graven, controller, is responsible for preparing. Greiner's master budget and has assembled the following...
-
Make an entry as of December 3 1 , 2 0 2 2 , recording any necessary amortization. ( Round answers to 0 decimal place Credit account titles are automatically indented when the amount is entered. Do...
-
D Question 5 1 pts ASW, a regional shoe chain, has recently launched an online store. Sales via the Internet have been sluggish compared to their brick and mortar stores, and management suspects that...
-
Question 8 Given f(x)=x +3, find: a) domain of f (x) in interval notation. b) an equation for f-1 (x) c) domain of f(x) in interval notation.
-
What Is Recruitment? Explain The Purpose And Importance Of Recruitment.? Explain Recruitment Process? What Are The Various Internal And External Sources Of Recruitment? Explain The Internal And...
-
5 3x The rational expression is 2x x+1 equivalent to a.) -6x+5x+1 2x(x+1) b.) -6x+5x+5 2x(x+1) c.) 5+3x x-1 d.) 5-3x x+1
-
An investment company is offering the following investment options: -Real Estate Fund 60%, 40% Bonds -Global, small capitalisation equities fund -Singapore Treasury Bond fund -South-east Asia small...
-
HighTech Ltd's beta is 1.35. If the risk free rate is 5.1% and the market risk premium is 7.3% what is the expected return investors require from HighTech?
-
Question 25 (12 marks) Emu Ltd is an Australian company that receives management consulting services from a US company called Holleewood Incorporated. On 15 June 2023, Emu Ltd received an invoice...
-
Write a paper by answer the following question: Should Recycling Be Mandatory?
-
Describe how businesses account for and report cash.} - A cash account is debited when cash is received and credited when cash is paid out. - Cash is reported on the statement of financial position...
-
Motormusic Ltd makes a standard model of car radio, which it sells to car manufacturers for 60 each. Next year the business plans to make and sell 20,000 radios. The businesss costs are as follows:...
-
Describe the operating cycle and explain the principles of cash management. - The operating cycle of the business starts when the business uses cash to purchase inventory. - When a business sells...
Study smarter with the SolutionInn App