Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external

image text in transcribed
image text in transcribed
image text in transcribed
6 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold, this left 125 bikes in ending inventory. The income statement information under variable costing follows. 714 points Sales (225 x $1,750) Variable product cost (225 x $700) Variable selling and administrative expenses (225 x $70) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net Income $ 393,750 157,500 15, 75e 220,500 70,000 85,000 $ 65, see eBook Hint 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement Net Income (los) Fixed costs added to inventory RE Required 2 > Sived 6 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold; this left 125 bikes in ending inventory. The income statement information under variable costing follows 714 points Sales (225 * $1,750) Variable product cost (225 $700) Variable selling and administrative expenses (225 * $70) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 393,750 157,500 15,750 220, 500 70,000 85,000 $ 65,500 eBook Hint 1. Prepare this company's income statement for its first month of operations under absorption costing 2. Fill in the blanks: Print Complete this question by entering your answers in the tabs below. Setences Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income units Exed overhead per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Non Finance Managers

Authors: Jai Kumar Batra

1st Edition

9352806964, 978-9352806966

More Books

Students also viewed these Accounting questions

Question

What training is required for the position?

Answered: 1 week ago

Question

=+ Is the information up to date?

Answered: 1 week ago