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Chapter $19$ Homework

senes

Required:

Prepare an Income statement using absorption costing based on production of $19,000$ tons and sales of $15,200$ tons. Can the

$50$

company report a positive income by increasing production to $19,000$ tons and storing the $3,800$ tons of excess production in points Inventory?

$2$ By how much does Income increase by when producing $19,000$ tons and storing $3,800$ tons in Inventory compared to only producing $15,200$ tons?

Complete this question by enteing your answers in the talis below.

Reguined $1$ Required $2$

Prepare an income statement using absorption costing based on production of $19,000$ tons and sales of $15,200$ tons, Can the company report a positive income by increasing production to $19,000$ tons and storing the $3,8,00$ tons of excess production in inventory?

Note: Round your answers to the nearest whole dollar:

Show lesst

$\backslash$table$[[$BLAZER CHENICAL$],[$Income Statement $($Absorption Costing$)],[$Sales$,$$$1,216,000$Chapter $19$ Homework

Sarad

Blazer Chemical produces and sells an ice$-$melting granular used on roadways and sidewalks in wnter. It annually produces and sells $19,000$ tons of its granular. Because of this year's mild winter, projected demand for its product is only $15,200$ tons. Based on projected

$50$

production and sales of $15,200$ tons, the company estimates the following Income using absorption costing. polits

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Sales tons at $$80$ per ton$)$

Cost of goods sold tons at $$60$ per ton$)$

Gross profit

Selling and administrative expenses

Incone

$\backslash$table$[[$$$1,216,000$