Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,000 cases in April 2018. The sales price was $29, variable costs were $12 per
ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,000 cases in April 2018. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable costing: (Click the icon to view the data using variable costing.) Read the requirements. Requirement 1. Prepare the April income statement using absorption costing. ReVitalAde - X Reference Income Statement (Absorption Costing) Month Ended April 30, 2018 Variable Costing $ 9.00 Total product cost per unit Cost of Finished Goods Inventory as of April 30, 2018 $ 9,000 Requirements - X Operating Income 1. Prepare the April income statement using absorption costing. 2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30. 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. Print Done Choose from any list or enter any number in the input fields and then click Check Al
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started