Question
I'll rate please help me I need the answer in an hour appreciate it thanks Roller Paint Co. reported the following data for the month
I'll rate please help me I need the answer in an hour appreciate it thanks
Roller Paint Co. reported the following data for the month of September. There were no beginning inventories and all units were completed (no work in process).
Total Cost | Number of Units | Unit Cost | |
Manufacturing costs: | |||
Variable | $465,000 | 30,000 | $15.50 |
Fixed | 210,000 | 30,000 | 7.00 |
Total | $675,000 | $22.50 |
Selling and administrative expenses: | |
Variable | $2.00 per unit sold |
Fixed | $39,000 |
In the month of September, 28,000 of the 30,000 units manufactured were sold at a price of $80.00 per unit.
Required: | |
(a) | Prepare a variable costing income statement.* |
(b) | Prepare an absorption costing income statement.* |
(c) | Briefly explain why there is a difference in income from operations between the two methods. |
*Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. You will not need to enter colons (:) on the income statement. |
Labels and Amount Descriptions
Labels | |
Fixed costs | |
For the Month Ended September 30 | |
Amount Descriptions | |
Contribution margin | |
Cost of goods manufactured | |
Cost of goods sold | |
Ending inventory | |
Fixed manufacturing costs | |
Fixed selling and administrative expenses | |
Gross loss | |
Gross profit | |
Income from operations | |
Loss from operations | |
Manufacturing margin | |
Sales | |
Selling and administrative expenses | |
Variable cost of goods manufactured | |
Variable cost of goods sold | |
Variable selling and administrative expenses |
Variable Costing Income Statement
(a) Prepare a variable costing income statement. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. You will not need to enter colons (:) on the income statement.
Roller Paint Co. |
Variable Costing Income Statement |
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2 | Variable cost of goods sold: |
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Absorption Costing Income Statement
(b) Prepare an absorption costing income statement. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. You will not need to enter colons (:) on the income statement.
Roller Paint Co. |
Absorption Costing Income Statement |
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Final Question
(c) Briefly explain why there is a difference in income from operations between the two methods.
The difference in the amount of income from operations is a result of the treatment of
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