Exer 11-16 (also in your book at end of chapter)

Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances.

Materials price variance $1,200 U

Materials quantity variance 800 F

Labor price variance 550 U

Labor quantity variance $750 U

Overhead variance 800 U

In addition, 8,000 units of product were sold at $8 per unit.

Each unit sold had a standard cost of $5.

Selling and administrative expenses were $8,000 for the month.

Instructions

Prepare an income statement for management for the month ended January 31, 2022.

Fisk Company Income Statement For the Month Ended JAN 31, 2022
Sales Revenue (#units x selling $ ea)
Cost of Goods Sold (standard cost)
Gross Profit (at standard)
Variances: (FYI: $ Amt and U or F)
Materials price
Materials quantity
Labor price
Labor quantity
Overhead
Total Variance (erase this, indicate after the words Total Variance whether Favorable or Unfavorable)
Gross Profit (actual)
Selling & Admin Expenses
Net Income

Hint: Gross profit (actual) = Gross profit (standard) + FAV var (or UNFAV var).