Question
Super Clean Company manufacturers a professionalgrade vacuum cleaner and began operations in 2020. For 2020, Super Clean budgeted to produce and sell 28,000 units. The
Super Clean Company manufacturers a professionalgrade vacuum cleaner and began operations in 2020. For 2020, Super Clean budgeted to produce and sell 28,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as follows:
| A | B |
1 | Units produced | 27,000 |
2 | Units sold | 20,500 |
3 | Selling price | $435 |
4 | Variable costs: |
|
5 | Manufacturing cost per unit produced: |
|
6 | Direct materials | $25 |
7 | Direct manufacturing labor | 28 |
8 | Manufacturing overhead | 52 |
9 | Marketing cost per unit sold | 50 |
10 | Fixed costs: |
|
11 | Manufacturing costs | $1,456,000 |
12 | Administrative costs | 946,100 |
13 | Marketing costs | 1,311,200 |
Prepare a 2020 income statement for Super Clean Company using variable costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 balance, make sure to enter "0" in the appropriate inputfield.)
Variable Costing
Revenues | ||
Variable Cost of Goods Sold: | ||
Beginning Inventory | ||
Variable Manufacturing Costs | ||
Cost of goods available for sale | ||
Deduct Ending Inventory | ||
Variable Cost of goods sold | ||
Variable Marketing Costs | ||
Contribution Margin |
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