Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with this question asap, i provided all information below with drop down list for income statement. Pls put steps, and round it to

image text in transcribedimage text in transcribed

need help with this question asap, i provided all information below with drop down list for income statement. Pls put steps, and round it to appropriate decimal places

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Fakh's CFO retrieved the following information with respect to the top-selling rotomoulded kayaks product line from the income statements for the past two years. It produced 3,000 units in the first year and 2,400 in the second year, while sales were 2,400 units in the first year and 2,700 in the second year. Variable production costs were $530.00 per unit during both years (direct materials $190.00, direct labour $160.00, and variable overhead $180.00). The company uses first-in, first-out (FIFO) for inventory costing. The absorption-costing comparative income statements for these two years were: Year 1 Year 2 Sales $2,160,000 $2,430,000 Less cost of goods sold: Beginning inventory $450,000 Product costs 2,250,000 1,932,000 Ending inventory (450,000) 1,800,000 (241,500) 2,140,500 Gross profit 360,000 289,500 Less operating expenses (selling and administrative) Variable 120,000 135,000 Fixed 29,000 149.000 29,000 164,000 Operating income $211,000 $125,500(a) Using the information provided, prepare condensed, two-year comparative income statements using the variable-costing method. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125. Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945)) Fakh Income Statement Variable Costing Year 1 Year 2 $ v Operating income (loss) Sales Fixed manufacturing costs Fixed selling and administration expenses Contribution margin Fixed costs Total fixed costs Cost of goods sold Variable selling and administration expenses Variable costs Total variable costs v $ S\fReconcile the variable-costing income with the absorption-costing income. Year 1 Year 2 Variable costing net income $ Fixed MOH deferred in ending inventory Fixed MOH released in beginning inventory Absorption costing net income LA S

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

Intermediate Accounting Volume 1

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick

7th Edition

1260306747, 978-1260306743

More Books

Students also viewed these Accounting questions

Question

Differentiate the function. r(z) = 2-8 - 21/2 r'(z) =

Answered: 1 week ago

Question

(b) 68.534 s (c) 2553 N (d) 7555 kg

Answered: 1 week ago

Question

5. Give examples of binary thinking.

Answered: 1 week ago