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Help with this HW problem please? Only 1 requirement, drop down menu with the options is located below the question. RRKB manufactures snowboards. RRKB began
Help with this HW problem please? Only 1 requirement, drop down menu with the options is located below the question.
RRKB manufactures snowboards. RRKB began 2020 with an inventory of 220 boards. During the year, it produced 1,400 boards and sold 1,010 for $710 each. Fixed production costs were $238,000, and variable production costs were $380 per unit. Fixed advertising, marketing, and other general and administrative expenses were $116,000, and variable shipping costs were $14 per board. Assume that the cost of each unit in beginning inventory is equal to 2020 inventory cost. RRKB uses a denominator level of 1,400 units. Requirement 1. Prepare an income statement assuming RRKB uses variable costing. Complete the top half of the income statement first, then complete the bottom portion. (Use parentheses or a minus sign for an operating loss.) Adjustment for production-volume variance Allocated fixed manufacturing costs Beginning inventory Contribution margin Cost of goods available for sale Deduct ending inventory Fixed manufacturing costs Fixed selling and administrative costs Gross margin Operating income (loss) Revenues Variable cost of goods sold Variable manufacturing costs Variable shipping costsStep by Step Solution
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