chapter 19 question 10

& EX 10 Chec QS 19-11 Converting variable costing income to absorption costing LO P3 Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 57,000 units, but its production was 87,000 units. It had no beginning finished goods inventory for the current period. 5 ipped Book $3,819,000 Hint DIAZ COMPANY Income Statement (Variable Costing) Sales (57,000 units * $67.00 per unit) Variable expenses Variable manufacturing expense (57,000 units x $28.70 per unit) Variable selling and admin. expense (57,000 units * $5.70 per unit) Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses Net income 1,635,900 324,900 1,960,800 1,858,200 Print rences 408,900 204,450 613,350 $1,244,850 1. Convert Diaz's variable costing income statement to an absorption costing income statement. 2. Fill in the blanks: $3,819,000 Uhits x $67.00 per unit) Variable expenses Variable manufacturing expense (57,000 units $28.70 per unit) Variable selling and admin. expense (57,000 units * $5.70 per unit) Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses Net income 1,635,900 324,900 1,960,800 1,858,200 408,900 204,450 613,350 $1,244,850 1. Convert Diaz's variable costing income statement to an absorption costing income statement. 2. Fill in the blanks: ES Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: (Round the fixed overhead per unit to two decimal places.) The dollar difference in variable costing income and absorption costing income = units fixed overhead per unit.