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I'm stuck on finding the Fixed overhead cost... QS 19-11 Converting variable costing income to absorption costing LO P3 Diaz Company reports the following variable
I'm stuck on finding the Fixed overhead cost...
QS 19-11 Converting variable costing income to absorption costing LO P3 Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 48,000 units, but its production was 78,000 units. It had no beginning finished goods inventory for the current period. $2,784,000 Diaz COMPANY Income Statement (Variable Costing) Sales (48,000 units X $58.00 per unit) Variable expenses Variable manufacturing expense (48,000 units X $27.80 per unit) Variable selling and admin. expense (48,000 units X $4.80 per unit) Total variable expenses Contribution margin Fixed expenses Fixed overhead Fixed selling and administrative expense Total fixed expenses Net income 1,334,400 230,400 1,564,800 1,219,200 296,400 148,200 444,600 $ 774,600 1. Convert Diaz's variable costing income statement to an absorption costing income statement. Answer is not complete. DIAZ COMPANY Absorption Costing Income Statement Sales 2.784.000 Less: Cost of goods sold Variable manufacturing costs Fixed overhead costs 0 0 0 1,334,400 296,400 1,630,800 0 0 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses 0 Net income (loss)Step by Step Solution
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