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Pepper Industries uses a standard cost accounting system. During March, 2019, the company reported the following manufacturing variances: Materials price variance $1,600 F Materials quantity
Pepper Industries uses a standard cost accounting system. During March, 2019, the company reported the following manufacturing variances:
Materials price variance | $1,600 | F | ||
Materials quantity variance | 2,400 | U | ||
Labor price variance | 600 | U | ||
Labor quantity variance | 2,200 | U | ||
Overhead controllable | 500 | F | ||
Overhead volume | 3,000 | U |
In addition, 15,000 units of product were sold at $18 per unit. Each unit sold had a standard cost of $14. Selling and administrative expenses for the month were $15,000. Prepare an income statement for management for the month ending March 31, 2019. (Enter favorable variance using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
PEPPER INDUSTRIES Income Statement For the Month Ended March 31, 2019 | |||||
Cost of Goods SoldNet Income / (Loss)Materials QuantityGross profit (actual)SalesVariancesGross Profit (at standard)Total VariancesSelling and Administrative Expenses | $ | ||||
Selling and Administrative ExpensesMaterials QuantityTotal VariancesGross profit (actual)Cost of Goods SoldVariancesGross Profit (at standard)SalesNet Income / (Loss) | |||||
Materials QuantityTotal VariancesGross profit (actual)VariancesGross Profit (at standard)SalesNet Income / (Loss)Cost of Goods SoldSelling and Administrative Expenses | |||||
Labor PriceTotal VariancesLabor QuantityMaterials PriceOverhead ControllableOverhead VolumeVariancesMaterials Quantity | |||||
Labor QuantityMaterials PriceTotal VariancesOverhead ControllableLabor PriceVariancesMaterials QuantityOverhead Volume | $ | ||||
Total VariancesVariancesMaterials QuantityLabor PriceLabor QuantityOverhead ControllableOverhead VolumeMaterials Price | |||||
Labor PriceMaterials QuantityLabor QuantityTotal VariancesMaterials PriceVariancesOverhead VolumeOverhead Controllable | |||||
Materials PriceOverhead ControllableLabor PriceLabor QuantityTotal VariancesOverhead VolumeVariancesMaterials Quantity | |||||
VariancesMaterials PriceLabor PriceOverhead VolumeMaterials QuantityTotal VariancesOverhead ControllableLabor Quantity | |||||
Total VariancesOverhead ControllableMaterials PriceVariancesLabor QuantityMaterials QuantityOverhead VolumeLabor Price | |||||
Overhead ControllableMaterials QuantityMaterials PriceLabor PriceTotal VariancesVariancesOverhead VolumeLabor Quantity | |||||
Total VariancesVariancesNet Income / (Loss)Gross profit (actual)Materials QuantityGross Profit (at standard)Selling and Administrative ExpensesSalesCost of Goods Sold | |||||
Materials QuantityTotal VariancesNet Income / (Loss)SalesGross profit (actual)Cost of Goods SoldGross Profit (at standard)Selling and Administrative ExpensesVariances | |||||
Materials QuantitySalesNet Income / (Loss)Selling and Administrative ExpensesGross profit (actual)VariancesGross Profit (at standard)Total VariancesCost of Goods Sold | $ |
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