Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 115 Units in

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 115
Units in beginning inventory 310
Units produced 6,280
Units sold 6,160
Units in ending inventory 430
Variable costs per unit:
Direct materials $ 39
Direct labor $ 26
Variable manufacturing overhead $ 3
Variable selling and administrative expense $ 20
Fixed costs:
Fixed manufacturing overhead $ 119,320
Fixed selling and administrative expense $ 43,120
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
Required:
a. Prepare a contribution format income statement for the month using variable costing.
b. Prepare an income statement for the month using absorption costing.
image text in transcribed
image text in transcribed
image text in transcribed
Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: $ 115 310 6,280 6,160 430 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 39 26 3 28 $ $ $119,320 $ 43,120 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format Income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing, Complete this question by entering your answers in the tabs below. Required A Required B Prepare a contribution format income statement for the month using variable costing. Variable Coating Income statement Variable expenses Help Sov Complete this question by entering your answers in the tabs below. Required A Required B Prepare a contribution format income statement for the month using variable costing. Variable Costing Income Statement Variable expenses: Fixed expenses: RA Required > The company produces the same number of units every month, although the sales in units vary from month to month. The com variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an income statement for the month using absorption costing. Absorption Costing Income Statement

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

Financial Accounting Information For Decisions

Authors: Robert w Ingram, Thomas L Albright

6th Edition

9780324313413, 324672705, 324313411, 978-0324672701

More Books

Students also viewed these Accounting questions

Question

An ICER value indicates which of two treatment options is better.

Answered: 1 week ago