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please label each question with the answer so i can know whats what PR 20-3A Absorption and variable costing income statements for two months and
please label each question with the answer so i can know whats what
PR 20-3A Absorption and variable costing income statements for two months and analysis 80,000 designer cowboy hats, of which 72,000 were sold. Operating data for the most During the first month of operations ended July 31, Western Creations Company pro summarized as follows: 1. B. Income from operations, 5847,000 SHOW ME NOW Sales Manufacturing costs: Direct materials... Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $1,600,000 1.440,000 240,000 320,000 + $ 144,000 25,000 16900 During August, Western Creations produced 64,000 designer cowboy hats and sold 7200 cowboy hats. Operating data for August are summarized as follows: $4,320.000 Sales Manufacturing costs: Direct materials Direct labor ... Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $1,280,000 1.152,000 192,000 320,000 2,944,000 $ 144,000 25,000 169.000 Chapter 20 Variable Costing for Management Analysis 1041 Instructions 1. Using the absorption costing concept, prepare income statements for (A) July and (B) August 2. Using the variable costing concept, prepare income statements for (1) July and (B) August. 3. A. Explain the reason for the differences in the amount of income from opera- tions in (1) and (2) for July. B. Explain the reason for the differences in the amount of income from opera- tions in (1) and (2) for August. 4. Based on your answers to (1) and (2), did Western Creations Company operate more profitably in July or in August? Explain Step by Step Solution
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