Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Whitman follows: Company has just completed its first year of operations. The company's absorption costing income statement for the year Whitman Company Income Statenent Sales

image text in transcribed
image text in transcribed
image text in transcribed
Whitman follows: Company has just completed its first year of operations. The company's absorption costing income statement for the year Whitman Company Income Statenent Sales (39,0ee units x $42.60 per unit) Cost of goods sold (39,000 units x $22 per unit) Gross margin Selling and adeinistrative expenses $1,661,400 858,000 803,400 448,500 Net operating income 354,900 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $22 unit product cost given above is computed as follows: $ 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($240,000 + 48,000 units) s 22 Absorption costing unit product cost Required: 1. Redo the company's income statement in the contribution format using variable costing 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $22 unit product cost given above is computed as follows: Direct saterials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($240,000+48,0o0 units) s 22 Absorption costing unit product cost Required: 1. Redo the company's income statement in the contribution format using variable costing 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above Complete this question by entering your answers in the tabs below. Required 2 Required 1 Redo the company's income statement in the contribution format using variable costing Whitman Company Variable Costing Income Statement Next 6 of 6

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

Recommended Textbook for

Auditing Theory And Practice

Authors: C. William Thomas, Bart Ward, Emerson Henke

3rd Edition

0534920748, 978-0534920746

More Books

Students also viewed these Accounting questions