Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with everything that has an X Jordan Manufacturing pays its production managers a bonus based on the company's profitability. During the two

I need help with everything that has an X

image text in transcribed

Jordan Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products. Units Produced Units Sold 4,000 6,000 4,000 4,000 Year Production and Sales Year 2 Year 3 Cost Data Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Variable selling and administrative expenses Fixed selling and administrative expenses $ 14.40 per unit $ 22.20 per unit $ 10.80 per unit $101,400 $ 7.00 per unit sold $ 53,000 (Assume that selling and administrative expenses are associated with goods sold.) Jordan sells its products for $109.60 per unit. Required a. Prepare income statements based on absorption costing for Year 2 and Year 3. b. Since Jordan sold the same number of units in Year 2 and Year 3, why did net income increase in Year 3? d. Determine the costs of ending inventory for Year 3. e. Prepare income statements based on variable costing for Year 2 and Year 3. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Year 2 Req A Year 3 Req B ReqD Reg E Year 2 Req E Year 3 Prepare income statements based on variable costing for Year 3. (Do not round intermediate calculations.) JORDAN MANUFACTURING Variable Costing Income Statement For the Year Ended Dec. 31, Year 3 $ 438,400 Revenues Variable costs: Direct labor Direct materials Variable selling and administrative expenses Variable manufacturing overhead $ 88,800 57,600 0 X 0X 0 Contribution margin Fixed selling and administrative expenses Fixed manufacturing overhead 146,400 292,000 0 X 0 X 0 $ 292,000 Net income

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

Internal Auditing Assurance & Consulting Services

Authors: Kurt F Reading, Paul J Sobel, Urton L Anderson, Michael J Head, Sri Ramamoorti

1st Edition

ISBN: 0894136100, 9780894136108

More Books

Students also viewed these Accounting questions

Question

Compare different frameworks for HRD evaluation

Answered: 1 week ago