Prepare an income statement for the year

Reference no: EM132262010

Excercise 5-2: Variable Costing Income Statement; Explanation of Difference in Net Operating Income

1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.

2. Prepare an income statement for the year using variable costing. Explain the difference in net operating income between the two costing methods.
Excercise 5-3: Reconciliation of Absorption and Variable Costing Net Operating Incomes

1. Determine each year's absorption costing net operating income. Present your answer in the form of a reconciliation report.

2. In Year 4, the company's variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012,400. Did inventories increase or decrease during Year 4? How much fixed

3. manufacturing overhead cost was deferred or released from inventory during Year 4?

Excercise 5-4: Basic Segmented Income Statement

Prepare a contribution format income statement segmented by product lines.

Excercise 5-6: Variable and Absorption Costing Unit Product Costs and Income Statements

1. Assume that the company uses absorption costing:

a. Compute the unit product cost.

b. Prepare an income statement for the year.

2. Assume that the company uses variable costing:

a. Compute the unit product cost.

b. Prepare an income statement for the year.

Note: Please see attached document for the tables and complete information.

Information related to above question is enclosed below:

Attachment:- Chapter5Exercises2346.rar

Reference no: EM132262010

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