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Just need to know what to put into those 4 boxes and how to get that. Thanks! Absorption and variable costing Bird's Eye View manufactures
Just need to know what to put into those 4 boxes and how to get that. Thanks!
Absorption and variable costing Bird's Eye View manufactures satellite dishes used in residential and commercial installations for satellite-broadcasted television. For each unit, the following costs apply: $50 for direct material, $100 for direct labor, and $60 for variable overhead. The company's annual fixed overhead cost is $1,350,000; it uses expected capacity of 22,500 units produced as the basis for applying fixed overhead to products. A commission of 10 percent of the selling price is paid on each unit sold. Annual fixed selling and administrative expenses are $324,000. The following additional information is available: Year 1 Year 2 Selling price per unit $500 $500 Number of units sold 18,000 21,600 Number of units produced 22,500 19,800 Beginning inventory (units) 13,500 18,000 Ending inventory (units) 18,000 a. Prepare pre-tax income statements under absorption and variable costing for Year 1 and Year 2, with any volume variance being charged to Cost of Goods Sold. Note: Do not use negative signs in your answers. Bird's Eye View Income Statements (Absorption) For the Years Ended December 31, Year 1 and Year 2 Year 1 Year 2 $ 9,000,000 $ 3,780,000 X $ 4,536,000 x 1,080,000 x 4,860,000 1,458,000 x $ 4,140,000 $ 10,800,000 Sales CGS Underapplied FOH Gross profit S&A: Variable Fixed 5,994,000 4,806,000 $ $ $ 900,000 324,000 1,080,000 324,000 1,224,000 1,404,000Step by Step Solution
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