Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work Exercise 06-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year,

image text in transcribed
image text in transcribed
image text in transcribed
Check my work Exercise 06-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing Sales (825 * $1,075) Cost of goods sold (825 $500) GEOSS margin Selling and administrative expenses Net Income $ 886,875 412,500 474,375 240,000 $ 234,375 nt ences Additional Information a. Product cost per kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost--the latter amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced, b. The $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing. > Ful in the blanke Prev 1 of 1 Next 651 PM O ype here to search KENZI KAYAKING Variable Costing Income Statement nt ences Net income (loss) ME Prev 1 of 1 Next we here to search ORI Check Additional Information a. Product cost per kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost-the amount is based on $107.500 of fixed production costs allocated to the 1,075 kayaks produced. b. The $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. ences Required 1 Required 2 Fill in the blanks: units fixed overhead per unit The dollar difference in variable costing income and absorption costing income =

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

Auditing For Business Clause-Based Requirements

Authors: Robin Briar

1st Edition

B09PMDJ956, 979-8796274712

More Books

Students also viewed these Accounting questions