Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, I do not know how to get the gross margin and figure out the total is there anything I am missing? Diaz Company reports

Hello, I do not know how to get the gross margin and figure out the total is there anything I am missing?

image text in transcribed
Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 45,000 units, but its production was 75,000 units. It had no beginning finished goods inventory for the current period. DIAZ COMPANY Sales (45,000 units * $55.00 per unit) Income Statement (Variable Costing) Variable expenses $2, 475, 090 Variable manufacturing expense (45,000 units * $27.50 per unit) 1, 237, 500 00:43 Variable selling and admin. expense (45,000 units * $4.50 per unit) 202, 500 Total variable expenses 1, 440, 000 Contribution margin Fixed expenses 1,035, 000 Fixed overhead 262, 500 Fixed selling and administrative expense 131, 250 Total fixed expenses 393, 750 Net income $ 641, 250 1. Convert Diaz's variable costing income statement to an absorption costing income statement 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Convert Diaz's variable costing income statement to an absorption costing income statement. DIAZ COMPANY Absorption Costing Income Statement Sales $ 2,475,000 Less: Cost of goods sold Variable manufacturing costs $ 1,237,500 Fixed overhead costs 157,500 Cost of goods sold ,395,000 Gross margin Selling general and administrative expenses Fixed selling and administrative costs 131,250 Variable selling and administrative expenses 202,500 Total fixed expenses 333,750

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

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

10th Edition

1259969495, 978-1259969492

More Books

Students also viewed these Accounting questions

Question

What do you see as your biggest strength/weakness?

Answered: 1 week ago