Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Direct Materials $10 per unit Direct Labor $20 per unit Variable OH costs $10 per unit Fixed OH costs $240,000 per year In addition to

Direct Materials $10 per unit

Direct Labor $20 per unit

Variable OH costs $10 per unit

Fixed OH costs $240,000 per year

In addition to the information provided above the Company also had:

Variable selling and administrative expenses $4 per unit

Fixed selling and administrative expenses $120,000 per year

Prepare and Income Statement for Vijay Company using the traditional absorption costing method and an income statement using the variable costing method assuming they sold 30,000 units at a sales price of $70 per unit. (Round all of your answers to the nearest whole dollar.)

Income Statement (Traditional Absorption Costing)

Sales

Cost of Goods Sold

Gross Margin

Selling and administrative expenses

Net income

Income Statement (Variable Costing)

Sales

Variable Expenses:

Variable production costs

Variable selling & admin. costs

Contribution Margin

Fixed Expenses:

Fixed Overhead

Fixed selling & admin. expenses

Net 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

Accounting An Essential Guide To Learning Accounting Quickly

Authors: Greg Shields

1st Edition

1978341873, 978-1978341876

More Books

Students also viewed these Accounting questions

Question

Describe how clarity can be enhanced through the use of fonts.

Answered: 1 week ago

Question

Why are stereotypes so resistant to change?

Answered: 1 week ago

Question

Explain global human resource management.

Answered: 1 week ago

Question

Describe the grievance procedure in a union environment.

Answered: 1 week ago

Question

Discuss whistleblower protection under OSHA.

Answered: 1 week ago