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I need help to fill in the numbers that are blank on the right Kenzi, a manufacturer of kayaks, began operations this year. During this
I need help to fill in the numbers that are blank on the right
Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 each. At year-end, the company reported the following Income statement information using absorption costing Sales (775 * $1,025) Cost of goods sold (775 * $400) Gross profit Selling and administrative expenses Income $ 794,375 310,000 484,375 230,000 $ 254,375 Additional Information a. Product cost per kayak under absorption costing totals $400, which consists of $300 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $102,500 of fixed overhead per year divided by 1,025 kayaks produced. b. The $230,000 in selling and administrative expenses consists of $85,000 that is vartable and $145,000 that is fixed. Prepare an income statement for the current year under variable costing 704,375 KENZI Income Statement (Variable Costinal Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses 501.876 Contribution margin Less Fixed expenses Forced overhead Fored selling and administrative expenses income Step by Step Solution
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