Question
Google Boutique has the following summary absorption costing income statement for 2015: Sales $1,320,000 Less: COGS 900,000 Plus: underapplied Fixed OH 10,000 Adjusted COGS 910,000
Google Boutique has the following summary absorption costing income statement for 2015:
Sales $1,320,000
Less: COGS 900,000
Plus: underapplied Fixed OH 10,000
Adjusted COGS 910,000
Gross Margin 410,000
Less: S&A costs 280,000
Income before taxes $130,000
Additionally,
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The unit sales price for 2015 was $44.
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30,000 units were sold.
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Variable S&A cost per unit for 2015 was $6.
-
Allocated Fixed Manufacturing overhead cost for 2015 was $128,000.
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Variable manufacturing cost per unit was $26 per unit.
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Total manufacturing cost per unit was $30 per unit.
-
2015 Beginning Inventory= 0 units and Ending Inventory =2,000 units.
Required:
- Prepare a detailed variable costing income statement for Google Boutique for 2015.
- Reconcile the income differences.
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