please answer both requirments
requirment 1 is below
1. Prepare income statements for 20X1 under variable costing and under absorption costing. 2. Explain why operating income was different under variable costing and absorption costing. Show your calculations Print Done 20x0 20X1 $ 5,440,000 $ 8.240,000 $ 0 s 360,000 1.720,000 1,360,000 Sales, 13,600 and 15,600 computers, respectively Variable expenses: Variable manufacturing cost of goods sold Opening inventory, at standard variable costs of $100 Add: variable cost of goods manufactured at standard, 17.200 and 13,000 computers, respectively Available for sale. 17.200 computers in each year Deduct: ending inventory, at standard variable cost of $100 Variable manufacturing cost of goods sold Variable selling expenses, at 5% of dollar sales Total variable expenses Contribution margin Fbced expenses $ 1,720,000 $ 1.720.000 360,000 160.000 $ 1,300,000 S 1.560.000 312,000 272.000 1.632.000 1.872.000 $ 3.808,000 $ 4.388.000 Fbced factory overhead S $ 1,600,000 800.000 1.800.000 800.000 Fived selline and Administrative expenses Print Done 20X0 20X1 $ 5.440,000 $ 8,240,000 $ $ 0 3,612,000 750,000 2,858,000 Sales Cost of goods sold: Opening inventory, at standard absorption cost of $210* Cost of goods manufactured at standard of 5210 Available for sale Deduct: ending inventory at standard absorption cost of 5210 Cost of goods sold, at standard Gross profit at standard Production-volume variance ** Gross margin or gross profit, at actual 3,812,000 3,612,000 336.000 750,000 2.850,000 3.270,000 2.584,000 288,000 2.964,000 110.000 U F Selling and administrative expenses 2.870,000 1.072.000 2.854,000 1.112.000 Operating income $ 1.798,000 S 1,742.000 "Variable cost Forced cost ($1.000.000 14.800) S 100 110 3,012.00U 336,000 3,276,000 2.984,000 110,000 U 2,854.000 1.112,000 $ 1.742,000 Available for sale 3,612,000 Deduct: ending inventory at standard absorption cost of $210 758,000 2.858,000 Cost of goods sold, at standard Gross profit at standard 2,584,000 Production-volume variance 286,000 F Gross margin or gross profit, at "actual" 2,870,000 1.072.000 Selling and administrative expenses 1,798.000 Operating income "Variable cost $ 100 Fixed cost (51,800,000 / 14.600) 110 Standard absorption cost $ 210 **Computation of production-volume variance based on expected volume of production of 14,800 computers: 20x0 $ 280,000 F (17.200 - 14,600) 5110 20X1 110,000 U (13.600 - 14,000) $110 Two years together 178.000 F (30.800 - 20.200) x 5110 U Unfavorable, F Favorable The Desk PC Division has prepared comparative income statements using the variable-costing and absorption-costing methods Suppose that in 20x 1 production was 15,000 computers instead of 13.000 computers, and sales were 14,600 computers. Also assume that the nel variances Click the icon to view the comparative variable desting income statement.) for all variable manufacturing costs were $22.000, unfavorable. Also assume that actual fixed manufacturing costs were $1.650.000 (Click the icon to view the comparative absorption costing income statement.) Read the requirements Requirement 1. Prepare income statements for 20X1 under variable costing and under absorption costing Begin by preparing the variable costing income statement. (Enter amounts in thousands of dollars) Desk PC Division Income Statement (Variable Costing) For the Year 20X1 in thousands of dollars) Sales Opening inventory, at variable standard costs of $100 Add: variable cost of goods manufactured Available for sale Deduct ending inventory, at variable standard cost of $100 Variable cost of goods sold at standard Net flexible-budget variances for all variable costs, unfavorable Variable cost of goods sold at actual tol Check Answer Enter any number in the edit fields and then click Check Answer Clear Al The Desk PC Division has prepared comparative income statements using the variable-costing and absorption-costing methods. (Click the icon to view the comparative variable costing income statement.) (Click the icon to view the comparative absorption costing income statement.) Suppose that in 20X1 product computers, and sales were 14 for all variable manufacturing actual fixed manufacturing cost Read the requirements. NII Add: variable cost of goods manufactured Available for sale Deduct: ending inventory, at variable standard cost of $100 Variable cost of goods sold, at standard Net flexible-budget variances for all variable costs, unfavorable Variable cost of goods sold, at actual Variable selling expenses, at 5% of dollar sales Total variable costs charged against sales Contribution margin Fixed factory overhead Fixed selling and administrative expenses Total forced expenses 11 Operating income Absorption-costing method 20X1 20XO $ 0.240.000 $ 5.440,000 5 S 0 Sales Cost of goods sold Opening inventory, at standard absorption cost of $2104 Cost of goods manufactured at standard of $210 Available for sale 750.000 2.858.000 3,812,000 3,812.000 750.000 3.612.000 338.000 2.850.000 3.270,000 Deduct ending inventory at standard absorption cost of $210 Cost of goods sold at standard Gross profitot standard 2.584.000 285,000 2.984.000 110.000 any F Production volume variance Gross margin or gross profitat actual 2.870.000 1.072 000 2.854,000 1.112.000 mal Selling and administrative expenses 1.793.000 1.742.000 Operating income Variable cost 3 100 Fored cost (51.000.000 14.000 110 i Absorption-costing method 3,812,000 338.000 3,812.000 756.000 Available for sale Deduct: ending inventory at standard absorption cost of $210 2.858.000 3,276,000 2.964,000 Cost of goods sold, at standard Gross profit at standard 2.584,000 288,000 F 110,000 U Production-volume variance 2.854,000 Gross margin or gross profitat actual 2.870.000 1.072.000 1.112.000 Selling and administrative expenses 1.798.000 $ 1.742,000 Operating income -Variable cost S 100 110 Foced cost ($1.600.000 14.000) $ 210 Standard absorption cost **Computation of production-volume variance based on expected volume of production of 14 800 computers 20X0 S 280.000 F 17.200 - 14,000) $110 20x 110.000 U13.000 - 14.000) 3110 175.000 (30.800 - 29.200) 5110 U UdbeFavorable 1. Prepare income statements for 20X1 under variable costing and under absorption costing. 2. Explain why operating income was different under variable costing and absorption costing. Show your calculations Print Done 20x0 20X1 $ 5,440,000 $ 8.240,000 $ 0 s 360,000 1.720,000 1,360,000 Sales, 13,600 and 15,600 computers, respectively Variable expenses: Variable manufacturing cost of goods sold Opening inventory, at standard variable costs of $100 Add: variable cost of goods manufactured at standard, 17.200 and 13,000 computers, respectively Available for sale. 17.200 computers in each year Deduct: ending inventory, at standard variable cost of $100 Variable manufacturing cost of goods sold Variable selling expenses, at 5% of dollar sales Total variable expenses Contribution margin Fbced expenses $ 1,720,000 $ 1.720.000 360,000 160.000 $ 1,300,000 S 1.560.000 312,000 272.000 1.632.000 1.872.000 $ 3.808,000 $ 4.388.000 Fbced factory overhead S $ 1,600,000 800.000 1.800.000 800.000 Fived selline and Administrative expenses Print Done 20X0 20X1 $ 5.440,000 $ 8,240,000 $ $ 0 3,612,000 750,000 2,858,000 Sales Cost of goods sold: Opening inventory, at standard absorption cost of $210* Cost of goods manufactured at standard of 5210 Available for sale Deduct: ending inventory at standard absorption cost of 5210 Cost of goods sold, at standard Gross profit at standard Production-volume variance ** Gross margin or gross profit, at actual 3,812,000 3,612,000 336.000 750,000 2.850,000 3.270,000 2.584,000 288,000 2.964,000 110.000 U F Selling and administrative expenses 2.870,000 1.072.000 2.854,000 1.112.000 Operating income $ 1.798,000 S 1,742.000 "Variable cost Forced cost ($1.000.000 14.800) S 100 110 3,012.00U 336,000 3,276,000 2.984,000 110,000 U 2,854.000 1.112,000 $ 1.742,000 Available for sale 3,612,000 Deduct: ending inventory at standard absorption cost of $210 758,000 2.858,000 Cost of goods sold, at standard Gross profit at standard 2,584,000 Production-volume variance 286,000 F Gross margin or gross profit, at "actual" 2,870,000 1.072.000 Selling and administrative expenses 1,798.000 Operating income "Variable cost $ 100 Fixed cost (51,800,000 / 14.600) 110 Standard absorption cost $ 210 **Computation of production-volume variance based on expected volume of production of 14,800 computers: 20x0 $ 280,000 F (17.200 - 14,600) 5110 20X1 110,000 U (13.600 - 14,000) $110 Two years together 178.000 F (30.800 - 20.200) x 5110 U Unfavorable, F Favorable The Desk PC Division has prepared comparative income statements using the variable-costing and absorption-costing methods Suppose that in 20x 1 production was 15,000 computers instead of 13.000 computers, and sales were 14,600 computers. Also assume that the nel variances Click the icon to view the comparative variable desting income statement.) for all variable manufacturing costs were $22.000, unfavorable. Also assume that actual fixed manufacturing costs were $1.650.000 (Click the icon to view the comparative absorption costing income statement.) Read the requirements Requirement 1. Prepare income statements for 20X1 under variable costing and under absorption costing Begin by preparing the variable costing income statement. (Enter amounts in thousands of dollars) Desk PC Division Income Statement (Variable Costing) For the Year 20X1 in thousands of dollars) Sales Opening inventory, at variable standard costs of $100 Add: variable cost of goods manufactured Available for sale Deduct ending inventory, at variable standard cost of $100 Variable cost of goods sold at standard Net flexible-budget variances for all variable costs, unfavorable Variable cost of goods sold at actual tol Check Answer Enter any number in the edit fields and then click Check Answer Clear Al The Desk PC Division has prepared comparative income statements using the variable-costing and absorption-costing methods. (Click the icon to view the comparative variable costing income statement.) (Click the icon to view the comparative absorption costing income statement.) Suppose that in 20X1 product computers, and sales were 14 for all variable manufacturing actual fixed manufacturing cost Read the requirements. NII Add: variable cost of goods manufactured Available for sale Deduct: ending inventory, at variable standard cost of $100 Variable cost of goods sold, at standard Net flexible-budget variances for all variable costs, unfavorable Variable cost of goods sold, at actual Variable selling expenses, at 5% of dollar sales Total variable costs charged against sales Contribution margin Fixed factory overhead Fixed selling and administrative expenses Total forced expenses 11 Operating income Absorption-costing method 20X1 20XO $ 0.240.000 $ 5.440,000 5 S 0 Sales Cost of goods sold Opening inventory, at standard absorption cost of $2104 Cost of goods manufactured at standard of $210 Available for sale 750.000 2.858.000 3,812,000 3,812.000 750.000 3.612.000 338.000 2.850.000 3.270,000 Deduct ending inventory at standard absorption cost of $210 Cost of goods sold at standard Gross profitot standard 2.584.000 285,000 2.984.000 110.000 any F Production volume variance Gross margin or gross profitat actual 2.870.000 1.072 000 2.854,000 1.112.000 mal Selling and administrative expenses 1.793.000 1.742.000 Operating income Variable cost 3 100 Fored cost (51.000.000 14.000 110 i Absorption-costing method 3,812,000 338.000 3,812.000 756.000 Available for sale Deduct: ending inventory at standard absorption cost of $210 2.858.000 3,276,000 2.964,000 Cost of goods sold, at standard Gross profit at standard 2.584,000 288,000 F 110,000 U Production-volume variance 2.854,000 Gross margin or gross profitat actual 2.870.000 1.072.000 1.112.000 Selling and administrative expenses 1.798.000 $ 1.742,000 Operating income -Variable cost S 100 110 Foced cost ($1.600.000 14.000) $ 210 Standard absorption cost **Computation of production-volume variance based on expected volume of production of 14 800 computers 20X0 S 280.000 F 17.200 - 14,000) $110 20x 110.000 U13.000 - 14.000) 3110 175.000 (30.800 - 29.200) 5110 U UdbeFavorable
