IE QS 6-19 (Static): Prepare absorption costing income statement LO P2

Diaz Company reports the following variable costing income statement for its only product. Sales total 50,000 units, but production was 80,000 units. Diaz had no beginning finished goods inventory.

DIAZ COMPANY
Income Statement (Variable Costing)
Sales (50,000 units $60 per unit)		$ 3,000,000
Variable expenses
Variable cost of goods sold (50,000 units $28 per unit)	$ 1,400,000
Variable selling and administrative expenses (50,000 units $5 per unit)	250,000	1,650,000
Contribution margin		1,350,000
Fixed expenses
Fixed overhead	320,000
Fixed selling and administrative expense	160,000	480,000
Income		$ 870,000

Prepare an absorption costing income statement.

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Diaz Company reports the following variable costing income statement for its only product. Sales total 50,000 units, but production was 80,000 units. Diaz had no beginning finished goods inventory. (Click on the Graded Worksheet Tab below.)
DIAZ COMPANY
Income Statement (Variable Costing)
Sales (50,000 units $60 per unit)		$3,000,000
Variable expenses
Variable cost of goods sold (50,000 units $28 per unit)	$1,400,000
Variable selling and administrative expenses (50,000 units $5 per unit)	250,000	1,650,000
Contribution margin		1,350,000
Fixed expenses
Fixed overhead	320,000
Fixed selling and administrative expense	160,000	480,000
Income		$870,000
Units sold		50,000
Units produced		80,000
Selling price per unit		$60
Variable cost of goods sold per unit		$28
Variable selling and administrative costs per unit		$5
Required:
Prepare an absorption costing income statement.

A B C D F 2 Required: 3 Prepare an absorption costing income statement. 4 5 DIAZ COMPANY 6 Income Statement (Absorption Costing) 7 Sales 8 Cost of goods sold 9 10 11 12 13 14