Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help solve tasks a-b! Apex Marine Manufacturing, Inc. began operations on January 1 , 2019. The company uses actual costing and does not generally

please help solve tasks a-b! image text in transcribed
Apex Marine Manufacturing, Inc. began operations on January 1 , 2019. The company uses actual costing and does not generally carry Work in Process Inventories at the end of the year. Variable product costs per unit were the same for 2019,2020 and 2021 and total $68 per unit. Total Fixed Overhead Costs are $600,000 per year. Variable Selling and Administrative Costs are $9 for each unit sold. Fixed Selling and Administrative Costs are $230,000 per year. The Selling Price is $450 per unit for all three years. Production and Sales figures (in units) for three years are below. The company uses the FIFO method to assign cost to any units left in ending Finished Goods Inventory. TASKINGS: A. Prepare, in good form, two Income Statements for 2020: One using Absorption Costing and one using Variable Costing. Use the formats that I used in the class example for Chapter 7. Then, prepare a Reconciliation to explain the difference in the Net Income figures. Again, use the format that I used in the class example. B. Repeat part A - only do it for 2021 instead of 2020

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

Students also viewed these Accounting questions