Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 6-12 (Algo) Variable Costing Income Statement; Reconciliation (L06-2, L06-3) Whitman Company has just completed its first year of operations. The company's absorption costing income

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 6-12 (Algo) Variable Costing Income Statement; Reconciliation (L06-2, L06-3) Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Balen (42,000 units X $44.10 per unit) Cost of goods sold (42.000 units X $20 per unit) Gros margin Selling and administrative expenses Not operating inoce $ 1.852,200 840.000 1.012, 200 141.000 $ 571.200 The company's selling and administrative expenses consist of $315,000 per year in fixed expenses and $3 per unit sold in variable expenses. The $20 unit product cost given above is computed as follows 3.9 Direct materials Direct labor Variable maturitu oorhood Pixed manufacturing overhead (5188.000 47.000 unita) Abuorption contine unit product cat Exercise 6-12 (Algo) Variable Costing Income Statement; Reconciliation (L06-2, L06-3) Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Balen (42,000 units X $44.10 per unit) Cost of goods sold (42.000 units X $20 per unit) Gros margin Selling and administrative expenses Not operating inoce $ 1.852,200 840.000 1.012, 200 141.000 $ 571.200 The company's selling and administrative expenses consist of $315,000 per year in fixed expenses and $3 per unit sold in variable expenses. The $20 unit product cost given above is computed as follows 3.9 Direct materials Direct labor Variable maturitu oorhood Pixed manufacturing overhead (5188.000 47.000 unita) Abuorption contine unit product cat Required: 1. Redo the company's income statement in the contribution format using variable costing 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating Income on the absorption costing income statement above Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing Whitman Company Variable Costing Income Statement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating incomes Variable costing net operating income Absorption costing net operating 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_2

Step: 3

blur-text-image_3

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 Oracle E Business Suite Common Issues

Authors: Jeffrey T. Hare

1st Edition

1329529766, 978-1329529762

More Books

Students also viewed these Accounting questions

Question

Describe the seven standard parts of a letter.

Answered: 1 week ago

Question

Explain how to develop effective Internet-based messages.

Answered: 1 week ago

Question

Identify the advantages and disadvantages of written messages.

Answered: 1 week ago