Solution-Prepare an income statement based on the variable

Prepare an income statement based on the variable costing

Assignment Help Managerial Accounting

Reference no: EM132763855

Problem - Absorption and variable costing income statements - During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows:

Sales		$2,150,000
Manufacturing costs:
Direct materials	$960,000
Direct labor	420,000
Variable manufacturing cost	156,000
Fixed manufacturing cost	288,000	1,824,000
Selling and administrative expenses:
Variable	$204,000
Fixed	96,000	300,000

Required -

1. Prepare an income statement based on the absorption costing concept.

2. Prepare an income statement based on the variable costing concept.

3. Explain the reason for the difference in the amount of operating income reported in (1) and (2).

Reference no: EM132763855

Questions Cloud

Cultural sensitivity and social entrepreneurial spirit : During a MSIS degree program people have engaged in activities that demonstrated cultural sensitivity, social entrepreneurial spirit, and care for environment

Prepare a table indicating contribution margin : Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales

Find what are the project costs of capital for new ventures : What are the project costs of capital for new ventures with betas of 0.85 and 1.78? (Do not round intermediate calculations. Enter your answers)

Differentiate between the global task and global general : Differentiate between the global task and global general environments, including the main forces and challenges in both environments

Prepare an income statement based on the variable costing : YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Prepare an income statement based on the variable costing

How do demonstrate what required rate of return on project : Determine What is the required rate of return on the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)

Explain the four approaches to social responsibility : Explain the four approaches to social responsibility and give examples of how managers can show their support for their stakeholders

Find what is the risk premium on the market : If an investment with a beta of 0.7 offers an expected return of 8.5%, does it have a positive or negative NPV? What is the risk premium on the market?

How covid-19 has posed challenges : Specifically address how Covid-19 has posed challenges and opportunities for businesses

User Account

All Pages

Prepare an income statement based on the variable costing

Reference no: EM132763855

Reference no: EM132763855

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT