Question
Thornton Manufacturing Company established the following standard price and cost data. Sales price $ 8.50 per unit Variable manufacturing cost $ 3.70 per unit Fixed
Thornton Manufacturing Company established the following standard price and cost data.
| Sales price | $ 8.50 | per unit |
|---|---|---|
| Variable manufacturing cost | $ 3.70 | per unit |
| Fixed manufacturing cost | $ 2,100 | total |
| Fixed selling and administrative cost | $ 700 | total |
Thornton planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units.
Required
- Prepare the pro forma income statement in contribution format that would appear in a master budget.
- Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
Required A Required B Prepare the pro forma income statement in contribut THORNTON MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 2,000 Units Required
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
