Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Number of Units Unit Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable 24,000 $290.00 $6,960,000 Fixed 24,000 35.00 840,000 Total $325.00 $7,800,000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Number of Units Unit Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable 24,000 $290.00 $6,960,000 Fixed 24,000 35.00 840,000 Total $325.00 $7,800,000 Manufacturing costs in February: Variable 143,000 Fixed 143,000 $290.00 - $41,470,000 40.40 5,777,200 $330.40 $47,247,200 Total Selling and administrative expenses in February: Variable 167,000 26.90 $4,492,300 835,000 Fixed 167,000 5.00 Total 31.90 $5,327,300 Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Sales $ $ Cost of goods sold: Beginning inventory Cost of goods manufactured Total cost of goods sold $ Gross profit Selling and administrative expenses Operating income Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Sales $ Variable cost of goods sold $ Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Fresno Industries Inc, manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (167,000 units) during the first month, creating an ending Inventory of 24,000 units. During February, the company produced 143,000 units during the month but sold 167,000 units at $580 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable $290.00 24,000 24,000 $6,960,000 840,000 Fixed 35.00 Total $325.00 $7,800,000 Manufacturing costs in February: Variable 143,000 $290.00 $41,470,000 Fixed 143,000 40.40 5,777,200 $47,247,200 $330.40 Total Selling and administrative expenses in February: Variable Fixed 26.90 167,000 167,000 $4,492,300 835,000 5.00 Total 31.90 $5,327,300 om the analysis and input your answers in the questions below

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Introduction to Managerial Accounting

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

5th Canadian edition

77429494, 1259105709, 1260480798, 978-1259105708

Students also viewed these Accounting questions