PharoahCorp. is a manufacturer of specialty in-line skates. The operating results for 2022 are as follows:

Units produced

19,300pairs

Units sold

18,000pairs

Selling price

$205.00

per pair

Production information:

Direct materials

$926,400

Direct labour

714,100Variable manufacturing overhead

414,950Fixed manufacturing overhead

781,650Variable marketing costs

180,000Fixed marketing costs

200,700

There was no beginning finished goods inventory.

Prepare an absorption-costing income statement.(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

PHAROAHCorp.

Income Statement

choose the accounting period

December 31, 2022

Month Ended December 31, 2022

Year Ended December 31, 2022

Absorption Costing

Production in units

enter a number of units

Sales in units

enter sales in units

select an income statement item

Cost of goods sold

Cost of goods available for sale

Fixed costs

Total marketing costs

Costs of goods manufactured

Sales

Inventory, ending

Variable marketing costs

Fixed marketing costs

Inventory, beginning

Gross profit

Marketing costs

Net income

$

enter a number of units

select between addition and deduction

Add

Less

:

select an opening name for section one

Costs of goods manufactured

Total marketing costs

Inventory, beginning

Sales

Inventory, ending

Gross profit

Net income

Variable marketing costs

Fixed marketing costs

Cost of goods sold

Cost of goods available for sale

Marketing costs

Fixed costs

select an income statement item

Total marketing costs

Fixed costs

Net income

Variable marketing costs

Gross profit

Costs of goods manufactured

Fixed marketing costs

Sales

Cost of goods sold

Inventory, ending

Marketing costs

Inventory, beginning

Cost of goods available for sale

$

enter a dollar amount

select between addition and deduction

Add

Less

:

select an income statement item

Cost of goods available for sale

Inventory, beginning

Costs of goods manufactured

Total marketing costs

Fixed costs

Fixed marketing costs

Cost of goods sold

Net income

Variable marketing costs

Marketing costs

Sales

Inventory, ending

Gross profit

enter a dollar amount

select an income statement item

Gross profit

Fixed marketing costs

Inventory, beginning

Cost of goods available for sale

Cost of goods sold

Variable marketing costs

Fixed costs

Net income

Inventory, ending

Costs of goods manufactured

Marketing costs

Total marketing costs

Sales

enter a subtotal of the two previous amounts

select between addition and deduction

Add

Less

:

select an income statement item

Fixed marketing costs

Costs of goods manufactured

Cost of goods sold

Total marketing costs

Fixed costs

Cost of goods available for sale

Variable marketing costs

Sales

Marketing costs

Inventory, beginning

Net income

Gross profit

Inventory, ending

enter a dollar amount

select a closing name for section one

Sales

Variable marketing costs

Cost of goods available for sale

Total marketing costs

Fixed costs

Inventory, ending

Marketing costs

Cost of goods sold

Fixed marketing costs

Gross profit

Inventory, beginning

Costs of goods manufactured

Net income

enter a total amount for section one

select a summarizing line for the first part

Gross profit

Fixed costs

Total marketing costs

Net income

Variable marketing costs

Inventory, ending

Cost of goods available for sale

Cost of goods sold

Fixed marketing costs

Sales

Inventory, beginning

Marketing costs

Costs of goods manufactured

enter a total amount for the first part

select between addition and deduction

Add

Less

:

select an opening name for section two

Fixed marketing costs

Inventory, beginning

Net income

Gross profit

Total marketing costs

Variable marketing costs

Sales

Costs of goods manufactured

Marketing costs

Cost of goods available for sale

Cost of goods sold

Fixed costs

Inventory, ending

select an income statement item

Cost of goods sold

Inventory, beginning

Gross profit

Fixed marketing costs

Inventory, ending

Sales

Fixed costs

Cost of goods available for sale

Variable marketing costs

Marketing costs

Costs of goods manufactured

Total marketing costs

Net income

enter a dollar amount

select an income statement item

Fixed costs

Variable marketing costs

Cost of goods sold

Inventory, ending

Sales

Inventory, beginning

Fixed marketing costs

Net income

Gross profit

Cost of goods available for sale

Total marketing costs

Costs of goods manufactured

Marketing costs

enter a dollar amount

select a closing name for section two

Inventory, ending

Gross profit

Inventory, beginning

Fixed marketing costs

Cost of goods sold

Costs of goods manufactured

Marketing costs

Variable marketing costs

Cost of goods available for sale

Net income

Fixed costs

Total marketing costs

Sales

enter a total amount for section two

select a closing name for this statement

Inventory, beginning

Costs of goods manufactured

Gross profit

Total marketing costs

Cost of goods sold

Fixed marketing costs

Cost of goods available for sale

Marketing costs

Variable marketing costs

Fixed costs

Inventory, ending

Net income

Sales

$

enter a total amount for this statement

Prepare a variable-costing income statement.(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

PHAROAHCorp.

Income StatementVariable Costing

choose the accounting period

December 31, 2022

Month Ended December 31, 2022

Year Ended December 31, 2022

Production in units

enter a number of units

Sales in units

enter a number of units

select an income statement item

Fixed costs

Volume variance

Cost of goods available for sale

Sales

Variable cost of goods sold

Selling and administrative expenses

Costs of goods manufactured

Gross margin

Contribution margin

Inventory, beginning

Net income

Inventory, ending

Variable marketing costs

$

enter a dollar amount

select between addition and deduction

Add

Less

:

select an opening section name

Inventory, beginning

Selling and administrative expenses

Variable marketing costs

Fixed costs

Contribution margin

Cost of goods available for sale

Costs of goods manufactured

Inventory, ending

Sales

Gross margin

Net income

Volume variance

Variable cost of goods sold

select an income statement item

Sales

Inventory, ending

Contribution margin

Selling and administrative expenses

Variable cost of goods sold

Net income

Costs of goods manufactured

Cost of goods available for sale

Variable marketing costs

Volume variance

Gross margin

Fixed costs

Inventory, beginning

$

enter a dollar amount

select between addition and deduction

Add

Less

:

select an income statement item

Cost of goods available for sale

Costs of goods manufactured

Volume variance

Fixed costs

Variable cost of goods sold

Contribution margin

Inventory, ending

Variable marketing costs

Selling and administrative expenses

Net income

Sales

Gross margin

Inventory, beginning

enter a dollar amount

select an income statement item

Selling and administrative expenses

Variable cost of goods sold

Variable marketing costs

Net income

Fixed costs

Contribution margin

Sales

Volume variance

Gross margin

Cost of goods available for sale

Inventory, beginning

Costs of goods manufactured

Inventory, ending

enter a subtotal of the two previous amounts

select between addition and deduction

Add

Less

:

select an income statement item

Inventory, beginning

Volume variance

Inventory, ending

Variable marketing costs

Variable cost of goods sold

Gross margin

Costs of goods manufactured

Sales

Contribution margin

Cost of goods available for sale

Fixed costs

Net income

Selling and administrative expenses

enter a dollar amount

select an income statement item

Costs of goods manufactured

Selling and administrative expenses

Inventory, ending

Net income

Sales

Fixed costs

Variable cost of goods sold

Volume variance

Variable marketing costs

Cost of goods available for sale

Contribution margin

Inventory, beginning

Gross margin

enter a subtotal of the two previous amounts

select an income statement item

Variable cost of goods sold

Variable marketing costs

Cost of goods available for sale

Selling and administrative expenses

Sales

Net income

Costs of goods manufactured

Inventory, ending

Volume variance

Fixed costs

Gross margin

Inventory, beginning

Contribution margin

enter a dollar amount

enter a subtotal of the two previous amounts

select a summarizing line for the first part

Variable marketing costs

Gross margin

Volume variance

Net income

Variable cost of goods sold

Inventory, beginning

Contribution margin

Costs of goods manufactured

Fixed costs

Cost of goods available for sale

Selling and administrative expenses

Sales

Inventory, ending

enter a total amount for the first part

select between addition and deduction

Add

Less

:

select an income statement item

Volume variance

Variable cost of goods sold

Costs of goods manufactured

Inventory, ending

Contribution margin

Cost of goods available for sale

Sales

Variable marketing costs

Inventory, beginning

Fixed costs

Net income

Gross margin

Selling and administrative expenses

enter a dollar amount

select a closing name for this statement

Inventory, beginning

Sales

Variable marketing costs

Net income

Selling and administrative expenses

Contribution margin

Gross margin

Inventory, ending

Cost of goods available for sale

Costs of goods manufactured

Fixed costs

Volume variance

Variable cost of goods sold

$

enter a total amount for this statement

Reconcile the net incomes under absorption costing and variable costing.

Variable-costing net income

$

enter a dollar amount

Fixed MOH deferred in ending inventory

$

enter a dollar amount

Absorption-costing net income

$

enter a total amount

Calculate the break-even point in sales units (pairs of skates) under the current cost structure.

Break-even pointenter the break-even point in units

units

Prepare a throughput-costing income statement.(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

PHAROAHCorp.

Income Statement

choose the accounting period

December 31, 2022

Month Ended December 31, 2022

Year Ended December 31, 2022

Throughput Costing

Production in units

enter a number of units

Sales in units

enter a number of units

select an income statement item

Variable costs

Net income

Operating expenses

Direct material costs

Total operating expenses

Variable marketing costs

Inventory, beginning

Variable cost of goods sold

Fixed manufacturing overhead

Sales

Throughput contribution margin

Cost of goods sold

Inventory, ending

Fixed selling and administrative expenses

Fixed costs

$

enter a dollar amount

select between addition and deduction

Add

Less

:

select an opening section name

Variable costs

Operating expenses

Fixed costs

Throughput contribution margin

Inventory, beginning

Cost of goods sold

Inventory, ending

Sales

Direct material costs

Variable marketing costs

Total operating expenses

Variable cost of goods sold

Fixed manufacturing overhead

Net income

Fixed selling and administrative expenses

enter a dollar amount

select an income statement item

Direct material costs

Throughput contribution margin

Variable costs

Inventory, ending

Total operating expenses

Variable marketing costs

Inventory, beginning

Fixed costs

Fixed selling and administrative expenses

Sales

Cost of goods sold

Variable cost of goods sold

Net income

Operating expenses

Fixed manufacturing overhead

enter a dollar amount

select between addition and deduction

Add

Less

:

select an opening name for section one

Fixed selling and administrative expenses

Inventory, ending

Variable cost of goods sold

Variable costs

Inventory, beginning

Net income

Throughput contribution margin

Direct material costs

Cost of goods sold

Total operating expenses

Variable marketing costs

Fixed manufacturing overhead

Sales

Operating expenses

Fixed costs

select an income statement item

Operating expenses

Inventory, ending

Fixed costs

Fixed manufacturing overhead

Variable cost of goods sold

Fixed selling and administrative expenses

Variable marketing costs

Variable costs

Throughput contribution margin

Inventory, beginning

Cost of goods sold

Total operating expenses

Sales

Direct material costs

Net income

Fixed costs

$

enter a subtotal of the two previous amounts

select an income statement item

Fixed costs

Fixed manufacturing overhead

Fixed selling and administrative expenses

Variable costs

Throughput contribution margin

Inventory, ending

Net income

Operating expenses

Direct material costs

Variable marketing costs

Inventory, beginning

Cost of goods sold

Sales

Variable cost of goods sold

Total operating expenses

enter a dollar amount

select an income statement item

Fixed selling and administrative expenses

Variable marketing costs

Variable costs

Variable cost of goods sold

Total operating expenses

Operating expenses

Fixed costs

Inventory, beginning

Inventory, ending

Net income

Cost of goods sold

Throughput contribution margin

Sales

Fixed manufacturing overhead

Direct material costs

enter a subtotal of the two previous amounts

select an income statement item

Throughput contribution margin

Inventory, ending

Cost of goods sold

Fixed costs

Total operating expenses

Direct material costs

Fixed manufacturing overhead

Inventory, beginning

Net income

Operating expenses

Variable costs

Variable marketing costs

Sales

Variable cost of goods sold

Fixed selling and administrative expenses

enter a total amount for the section

select a closing name for this statement

Variable cost of goods sold

Fixed manufacturing overhead

Inventory, ending

Variable marketing costs

Net income

Sales

Operating expenses

Total operating expenses

Fixed selling and administrative expenses

Inventory, beginning

Throughput contribution margin

Fixed costs

Cost of goods sold

Direct material costs

Variable costs

$

enter a total amount for this statement

Reconcile the net incomes under throughput costing and variable costing.(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

Throughput-costing net income

$

enter a dollar amount

Costs deferred in ending inventory

$

enter a dollar amount

Variable-costing net income

$

enter a total amount