Prepare an income statement

Assignment Help Accounting Basics
Reference no: EM131787329

Question - On June 30, the end of the first month of operations, Volker Energy Company prepared the following income statement, based on the absorption costing concept:

Volker Energy Company Absorption Costing Income Statement For the Month Ended June 30, 2011

Sales (4,800) units

 

$134,400

Cost of goods sold:

 

 

Cost of goods manufactured (5,600 units)

$112,000

 

Les inventory, June 30 (800 units)

16,000

 

Cost of goods sold

 

96,000

Gross profit

 

$38,400

Selling and administrative expenses

 

22,550

Income from operations

 

$15,850

Required - If the fixed manufacturing costs were $25,200 and the variable selling and administrative expenses were $11,400, prepare an income statement according to the variable costing concept. Enter all amounts as positive numbers.

Reference no: EM131787329

Questions Cloud

Which group would have the larger standard deviation : Suits of cards The histograms contain data with a range of 1 to 4. Which group would have the larger standard deviation, group A or group B? Why?
In implementing a protective put-buying strategy : In implementing a protective put-buying strategy, explain the trade-off between the cost of the strategy and the strike price selected.
Compute operating income at given units : International Data Systems information on revenue and costs is only relevant up to a sales volume of 100,000 units.
Dominguez barry looks at covered calls : Here is an excerpt from an article titled "Dominguez Barry Looks at Covered Calls," appearing in the July 20, 1992, issue of Derivatives Week, p. 7:
Prepare an income statement : If the fixed manufacturing costs were $25,200 and the variable selling and administrative expenses were $11,400, prepare an income statement
Determine the price of a european call option : Determine the price of a European call option on a 6.5% four-year Treasury bond with a strike price of 100.25 and two years to expiration assuming:
Degree of combined leverage for the japanese firm : Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships.
Determine the price of a european put option : Determine the price of a European put option on a 6.5% four-year Treasury bond with a strike price of 100.25 and two years to expiration assuming the same.
What is the range of birth lengths of us-born children : What is the range of birth lengths (in centimeters) of U.S.-born children from one standard deviation below the mean to one standard deviation above the mean?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare adjusting entries that the company must record

Tanger rents a building from its owner for $3,200 per month. By a prearrangement, the company delayed paying October's rent until November 5.

  Journalize the transactions for goal services

Sebastian Giavinco is the owner of Goal Services. Required - Journalize the transactions for Goal Services. Only simple explanations are required

  Find dividends to the owners during 2010

Garcia Company began 2010 with net assets of $80,000. Net income calculated by using the capital maintenance concept was $21,000. During 2010 owners contributed $26,000 of new capital. By year-end, the net assets totaled $78,000. Dividends to the own..

  Why are these formulas important for trainers

Why are these formulas important for trainers and change agents to understand

  What is the expected level of profit

Lindsey Smith, Inc. has a maximum production capacity of 25 000 units, What is the expected level of profit based on the above information

  Report on current or long-term liability

Smith Corporation is preparing its December 31, 2009, balance sheet. The following items may be reported as either a current or long-term liability.

  The post-closing trial balances of two proprietorships

Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.

  Net realizable value of accounts receivable

If MA Company has net credit sales of $800,00 and estimates that 1% will be uncollectake, what is the net realizable value of accounts receivable as reported on the balance sheet?

  Compute the company residual income for the year

The company's average operating assets for the year were $1,400,000, Required: Compute the company's residual income for the year

  The caltor company gathered the following condensed data

the caltor company gathered the following condensed data for the year ended december 31 2010 cost of goods sold 710000

  Reviews of professional magazine

Each student will write two 2 - 3 page reviews of professional magazine or academic journal articles dealing with quality.

  Hank itzek manufactures and sells homemade wine and he

hank itzek manufactures and sells homemade wine and he wants to develop a standard cost per gallon. the following are

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd