Prepare an income statement for the year

Assignment Help Accounting Basics

Reference no: EM132217100

Question - Data concerning Sonderegger Company's operations last year appear below:

Units in beginning inventory - 0

Units produced - 70,000

Units sold - 60,000

Selling price per unit - $12.00

Variable costs per unit:

Direct materials - $2.00

Direct labor - $1.00

Variable manufacturing overhead - $1.00

Variable selling and administrative - $1.50

Fixed costs in total:

Fixed manufacturing overhead - $140,000

Fixed selling and administrative - $150,000

Required -

a. Prepare an income statement for the year using absorption costing.

b. Prepare a contribution format income statement for the year using variable costing.

c. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

Reference no: EM132217100

Questions Cloud

Write a network security plan in detail : You are the Chief Information Security Officer (CISO) for a fictional or real company or government organization and you've been asked to write a network.

The labor market ethical on the basis of virtue ethics : Is employing children in the labor market ethical on the basis of virtue ethics, fundamental rights, or utilitarianism? Why, or why not?

Who should be empowered in the fight : Who should be empowered in the fight against race inequality and who should be actively involved?

Conclusion to organizational growth and expansion : What is the introduction and conclusion to Organizational Growth and Expansion.

Prepare an income statement for the year : Prepare an income statement for the year using absorption costing. Prepare a contribution format income statement for the year using variable costing

Why using the balanced scorecard is strategic measure : Explain why using the balanced scorecard is a strategic measure to help a health care institution be successful and stay competitive.

Spending millions on celebrity athletic team endorsements : Nike is one of the largest and most profitable sporting equipment providers in the world, spending Millions on Celebrity athletic team endorsements.

Requirements to be categorized as one of these partnerships : Use specific facts to prove why you think this company fulfills the requirements to be categorized as one of these partnerships.

Write your response on baseline security settings : The effect amounts of FIPS 199 have to be focused while drawing the device boundaries as well as when selecting the baseline protection settings.

User Account

All Pages