Exercise 11-16

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

Materials price variance		$1,390	U		Labor quantity variance		$820	U
Materials quantity variance		710	F		Overhead variance		770	U
Labor price variance		460	U

In addition, 8,450 units of product were sold at $9 per unit. Each unit sold had a standard cost of $5. Selling and administrative expenses were $8,450 for the month. Prepare an income statement for management for the month ended January 31, 2017.

FISK COMPANY Income Statement January 31, 2017For the Year Ended January 31, 2017For the Month Ended January 31, 2017
Selling and Administrative ExpensesLabor QuantityTotal VarianceGross Profit (at standard)VariancesLabor PriceCost of Goods SoldOverheadSales RevenueNet Income / (Loss)Gross Profit (actual)Materials PriceMaterials Quantity						$
Sales RevenueOverheadCost of Goods SoldSelling and Administrative ExpensesMaterials PriceGross Profit (actual)VariancesLabor PriceNet Income / (Loss)Total VarianceGross Profit (at standard)Materials QuantityLabor Quantity
Selling and Administrative ExpensesNet Income / (Loss)OverheadSales RevenueCost of Goods SoldTotal VarianceGross Profit (actual)Gross Profit (at standard)Labor PriceLabor QuantityVariancesMaterials PriceMaterials Quantity
Cost of Goods SoldVariancesMaterials PriceGross Profit (actual)Total VarianceLabor PriceGross Profit (at standard)Selling and Administrative ExpensesLabor QuantityMaterials QuantityNet Income / (Loss)Sales RevenueOverhead
Labor Price Net Income / (Loss) Materials Quantity Overhead Gross Profit (actual) Selling and Administrative Expenses Labor Quantity Sales Revenue Total Variance Gross Profit (at standard) Materials Price Variances Cost of Goods Sold			$	FavorableUnfavorableNeither favorable nor unfavorable
Cost of Goods Sold Selling and Administrative Expenses Total Variance Labor Quantity Gross Profit (actual) Gross Profit (at standard) Materials Quantity Net Income / (Loss) Overhead Sales Revenue Materials Price Variances Labor Price				FavorableUnfavorableNeither favorable nor unfavorable
Variances Cost of Goods Sold Selling and Administrative Expenses Labor Price Gross Profit (actual) Total Variance Overhead Materials Quantity Labor Quantity Net Income / (Loss) Gross Profit (at standard) Materials Price Sales Revenue				FavorableUnfavorableNeither favorable nor unfavorable
Gross Profit (actual) Cost of Goods Sold Variances Overhead Gross Profit (at standard) Labor Price Materials Price Sales Revenue Materials Quantity Labor Quantity Net Income / (Loss) Total Variance Selling and Administrative Expenses				FavorableUnfavorableNeither favorable nor unfavorable
Cost of Goods Sold Materials Price Net Income / (Loss) Gross Profit (actual) Gross Profit (at standard) Variances Labor Price Selling and Administrative Expenses Materials Quantity Labor Quantity Overhead Sales Revenue Total Variance				FavorableUnfavorableNeither favorable nor unfavorable
Gross Profit (at standard) Total Variance Sales Revenue Labor Price Net Income / (Loss) Labor Quantity Materials Price Overhead Materials Quantity Cost of Goods Sold Selling and Administrative Expenses Gross Profit (actual) Variances				FavorableUnfavorableNeither favorable nor unfavorable
Gross Profit (actual)Materials PriceGross Profit (at standard)OverheadMaterials QuantityLabor PriceVariancesCost of Goods SoldSelling and Administrative ExpensesSales RevenueTotal VarianceNet Income / (Loss)Labor Quantity
Gross Profit (actual)Materials QuantityLabor QuantityGross Profit (at standard)Selling and Administrative ExpensesLabor PriceMaterials PriceCost of Goods SoldNet Income / (Loss)OverheadSales RevenueTotal VarianceVariances
Net Income / (Loss)Selling and Administrative ExpensesCost of Goods SoldVariancesGross Profit (at standard)Materials QuantityOverheadTotal VarianceGross Profit (actual)Labor PriceLabor QuantityMaterials PriceSales Revenue						$