Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 19-6 Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the

image text in transcribed
image text in transcribed
Exercise 19-6 Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold, this left 125 bikes in ending Inventory. The income statement information under variable costing follows. Sales (225 $1,750) Variable product cost (225 * $625) Variable selling and administrative expenses (225 x 560) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 393,750 140, 625 13,500 239,625 63,000 95,000 $ 81,625 1. Prepare this company's income statement for its first month of operations under absorption costing 2. Fill in the blanks Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing, KENZI KAYAKING Abnorption Costing Income Statement Noticon Recured Exercise 19-6 Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting For its first month of operations, 350 bikes were produced and 225 were sold, this left 125 bikes in ending inventory. The income statement information under variable costing follows Sales (225 x 51,750) Variable product cont (225 x 5625) Variable selling and administrative expenses (225 x 560) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net Income 5 393,750 140,625 13.500 239.625 63,800 95, $ 81,625 1. Prepare this company's income statement for its first month of operations under absorption costing 2. Fall in the blanks Complete this question by entering your answers in the tabs below. Required 1 Required 2 w in the blank The dietence invariable costing income and absorption costing income un Sxed overhead per unit

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

Managerial Accounting Creating Value In A Dynamic Business Environment

Authors: Ronald Hilton, David Platt

13th Edition

1264100698, 9781264100699

More Books

Students also viewed these Accounting questions

Question

Define procrastination and explain its causes.

Answered: 1 week ago

Question

What is nonverbal communication?

Answered: 1 week ago