On July 31, 2010, the end of the first month of operations, Hilton Company prepared the following
Question:
On July 31, 2010, the end of the first month of operations, Hilton Company prepared the following income statement, based on the absorption costing concept:
Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $48,000 and the variable selling and administrative expenses were$34,000.
Transcribed Image Text:
Sales (20,000 units) Cost of goods sold: Cost of goods manufactured Less ending inventory (4,000 units) Cost of goods sold Gross profit Selling and administrative expenses Income from operations $1,400,000 $1,050,000 175,000 875,000 $ 525,000 75,000 $ 450,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (11 reviews)
HILTON COMPANY Income StatementVariable Costing Fo...View the full answer
Answered By
Sylvanus Oyoo
a business student specifically specialized in the field of accounting
also an IT expert
0.00
0 Reviews
10+ Question Solved
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Managerial Accounting questions
-
On July 31, 2014, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: a. Prepare a variable costing income...
-
On June 30, the end of the first month of operations, Bastile Company prepared the following income statement, based on the absorption costing concept: If the fixed manufacturing costs were $192,000...
-
On July 31, the end of the first month of operations, Del Ray Equipment Company prepared the following income statement, based on the variable costing concept: Prepare an income statement under...
-
A product has a contribution margin of $6 per unit and a selling price of $30 per unit. Fixed costs are $24,000. Assuming the new technology increases the unit contribution margin by 60 percent but...
-
In the New York Times article "College Graduates Fare Well in Jobs Market, Even through Recession," C. Rampell noted that college graduates have suffered through the recession and lackluster recovery...
-
Gino has a debit card. The account pays no interest. He keeps track of his purchases and deposits in this debit card register. Find the missing entries a-f. YMENT 8/4 Baseball Bat 92 1 9219 a. 51.00...
-
The following production information about quality costs has been gathered for September: Using these data, calculate the following: a. Total cost to rework b. Profit lost from not reworking all...
-
Using the following categories, define the purpose of each of the common controls over cash listed below. You may use multiple categories for each control. Categories of Purposes of Each Common...
-
11. Find f'(2), where_(t)=u(t)v(t), u(2)=(1,2,-1), u'(2)=(3,0,4) and v(t) = (1,1,1).
-
A friend of yours is calling you. He tells you about his own cryptocurrency he has created. The coins have little to no value other than as a unit of exchange. That would not stop consumers from...
-
In the following equations, based on the variable costing income statement, identify the items designated by X: a. Net Sales _ X = Manufacturing Margin b. Manufacturing Margin _ X = Contribution...
-
On June 30, 2010, the end of the first month of operations, Smithey Manufacturing Co. prepared the following income statement, based on the variable costing concept: Prepare an absorption costing...
-
The following balance sheet was prepared by the bookkeeper for Purple Company as of December 31, 2011 The following additional information is provided: (1) Cash includes the cash surrender value of a...
-
If you invested $1000 for 5 years and your return was 12%, how much interest on interest did you earn?
-
1.Explain the nature of Strategic Cost Management, its use and purpose in the business. 2.How is it different from Cost Accounting and Management Accounting. 3.Explain how Strategic Cost Management...
-
Smith & Associates are the auditors of Fleur Corp. For the year 2020, Smith set the overall materiality of $1,500,000, and a tolerable misstatement of $750,000. During the year, the identified the...
-
Discuss the advantages and disadvantages of using standard costing - use examples
-
Buckner Industries has prepared the condensed forecast income statement for the year ending December 31, 2002. After creating the forecast, Buckner develops a new product, which will require $100...
-
What are the main causes of expatriate failure?
-
Consider the function f and its graph. a. Estimate the zeros of the area function b. Estimate the points (if any) at which A has a local maximum or minimum. c. Sketch a graph of A, for 0 x 10,...
-
The scanning method for digitizing involves both rasterization and vectorization. Why?
-
Explain how cash-basis accounting for pension plans differs from accrual-basis accounting for pension plans. Why is cash-basis accounting generally considered unacceptable for pension plan accounting?
-
Explain how cash-basis accounting for pension plans differs from accrual-basis accounting for pension plans. Why is cash-basis accounting generally considered unacceptable for pension plan accounting?
-
Identify the five components that comprise pension expense. Briefly explain the nature of each component.
-
Determine the rate of return for the following cash flow series: $22,000 0 1 2 3 4 5 6 7 8 9 10 $6,000 $500 $1,000
-
Currently, 3-year Treasury securities yield 9%, 7-year Treasury securities yield 8.6%, and 10-year Treasury securities yield 8.3%. If the expectations theory is correct, what does the market expect...
-
Region Name: Australia Equity Markets: Discuss Australian equity market performance and outlook based on factors Macroeconomic factors ( GDP growth, inflation ) , Monetary policy settings ( interest...
Study smarter with the SolutionInn App