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Below is my work. A B 1 Pennsylvania Manufacturing Company 2 Absorption (Full) vs. Variable Costing PROBLEM Information For the Year Ended December 31, 2020
Below is my work.
A B 1 Pennsylvania Manufacturing Company 2 Absorption (Full) vs. Variable Costing PROBLEM Information For the Year Ended December 31, 2020 Required: Using the data provided, prepare typed income statements under absorption costing and variable costing on the form provided at the first tab in this workbook. See the "Notes" below the data 5 regarding income statement format. Pennsylvania Manufacturing Company manufactures horse hair brushes that sell for $3.00 each. Production, sales, and cost data for 7 2020 are provided below. 9 Production Information: 10 Finished Goods, January 1, 2020 11 Units produced 3,000 12 Units sold 2,500 14 Cost Information: 15 Direct materials per unit 16 Direct labor per unit 17 Variable factory overhead per unit 18 Total variable factory cost per unit 19 Fixed factory overhead 0.20 0.09 0.15 0.44 2,100.00 21 Variable marketing per unit sold 22 Fixed selling and administrative costs 0.80 700.00 Pennsylvania Manufacturing Company Pennsylvania Manufacturing Company Absorption (Full) Costing Income Statement Variable Costing Income Statement For the Year Ended December 31, 2020 For the Year Ended December 31, 2020 Sales Sales 7,500 7,500 5Cost of Goods Sold Finished Goods, beginning Variable Cost of Goods Sold Finished Goods, beginning Add: Cost of Goods Manufactured 3,420 Add: Cost of Goods Manufactured 1,320 1,320 Goods Available for Sale Goods Available for Sale 3,420 Deduct: Finished Goods, ending Variable Cost of Goods Sold Variable Selling Expenses Contribution Margin 0 Deduct: Finished Goods, ending 570 220 1 Cost of Goods Sold 2,850 1,100 2 Gross Margin 3 Operating Expenses 4,650 3,100 2,000 4,400 selling expenses General and Administrative expenses Fixed Operating Expenses General and administrative expenses 4 2,000 700 2,700 700 6 Fixed Factory Overhead 2,100 2,800 7 Operating Income 1,950 8 1,600 Operating Income 9 1 2 3 4 5 Computations: 6 Sales: 2,500 * $3 = $7,500 Computations: Sales: 2,500 $3 $7,500Step by Step Solution
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