Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Morristown &

On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing:

Morristown & Co.
Absorption Costing Income Statement
For Month Ended October 31, 20--
Sales (2,600 units) $117,000
Cost of goods sold:
Cost of goods manufactured $85,500
Less ending inventory (400 units) 11,400
Cost of goods sold 74,100
Gross profit $42,900
Selling and administrative expenses 21,500
Income from operations $21,400

If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing. Filling in the blanks with the following terms chart.

-Fixed manufacturing costs

-Less ending inventory

-Sales

-Variable cost of goods manufactured

-Wages Expense

-Fixed selling and administrative expenses

-Variable cost of goods sold

-Less ending inventory

-Utilities Expense

-Manufacturing margin

-Contribution margin

____________ $
Variable cost of goods sold:
____________ $
___________ $
___________ $
___________ $
___________ $
____________ $
Fixed costs:
____________ $
___________ $ $
Income from operations $

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

Called To Account Fourteen Financial Frauds That Shaped The American Accounting Profession

Authors: Paul M. Clikeman

1st Edition

0415996988, 978-0415996983

More Books

Students also viewed these Accounting questions

Question

Apply the product rule for exponents, if possible. (2xy5) (9xy)

Answered: 1 week ago

Question

Q.No.1 Explain Large scale map ? Q.No.2 Explain small scale map ?

Answered: 1 week ago

Question

1. Signs and symbols of the map Briefly by box ?

Answered: 1 week ago

Question

Types of physical Maps?

Answered: 1 week ago