Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

fill in the numbers Check my work Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the

fill in the numbers image text in transcribed
image text in transcribed
image text in transcribed
Check my work Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statenent 10 points Sales (39,000 units $45.10 per unit) Cost of goods sold (39,000 units x $23 per unit) Gross margin Selling and administrative expenses Net operating income $1,758,900 897,000 487,500 $ 374,400 eBook Print ReferencesThe company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $5 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead ($270,000 54,000 units) Absorption costing unit product cost s 11 s 23 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. 5 Complete this question by entering your answers in the tabs below Required 1 Required 2 10 points Redo the company's income statement in the contribution format using variable costing eBook Variable Costing Income Statement Print References Sales Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Net operating income Required 2 Check my work 5 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. 10 points Complete this question by entering your answers in the tabs below eBook Print References Required 1Required 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 Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing net operating income Required 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions