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please help Kenzl, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,075 kayaks and sold 825 at a price
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Kenzl, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At year-end, the company reported the following income statement information using absorption costing. Sales (825 * $1,075) $ 886,875 Cost of goods sold (825 X $450) 371,250 Gross profit selling and administrative expenses 230,000 $ 285,625 515,625 Income Additional Information a. Product cost per kayak under absorption costing totals $450, which consists of $350 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $107,500 of fixed overhead per year divided by 1,075 kayaks produced b. The $230,000 in selling and administrative expenses consists of $75,000 that is variable and $155,000 that is fixed, Prepare an income statement for the current year under variable costing Prepare an income statement for the current year under variable costing. $ 886,875 KENZI Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 107,500 107,500 Income Step by Step Solution
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