Prepare income statement for both years using variable

Assignment Help Accounting Basics

Reference no: EM13610549

EraCruz company had the following operating data for its first two years of operation:
Variable costs per unit:
Direct materials $8
Direct Labor 4
Variable Overhead 1.5

Fixed Costs Per Year:
Overhead 90,000
Selling and admin 23,450

Veracruz produced 30,000 units in the first year and sold 25,000. INn the second year, it produced 25,000 units and sold 30,000 units. The selling price per unit each year was $21. Veracruz uses an actual costing system for product costing.

1.) Prepare income statement for both years using absorption costing. Has firm performance, as measured by income, improved or declined frm year 1 to year 2?
2.) Prepare income statement for both years using variable costing. Has firm performance, as measured by income, improved or declined frm year 1 to year 2?
3.) Which methid do you think most accurately measures firm performance? Why?

Reference no: EM13610549

Questions Cloud

A point charge 650rm nc is at the center of a cube with : a point charge 6.50rm nc is at the center of a cube with sides of length 0.300rm m. what is the electric flux through

How did mr mandoff keep his new investments at such a high : how did mr. mandoff keep his new investments at such a high rate of return and keep paying off investors and giving to

Steam at 25 psia and 250degf is condensed at its : steam at 25 psia and 250degf is condensed at its saturation temperature. what is the temperature of the condensate? how

What is the potential difference between the plates what is : the plates of a parallel-plate capacitor have a separation of 5.20mm and each has an area of 15.0cm2 . each plate

Prepare income statement for both years using variable : eracruz company had the following operating data for its first two years of operationvariable costs per unitdirect

Veracruz produced 30000 units in the first year and sold : veracruz produced 30000 units in the first year and sold 25000. in the second year it produced 25000 units and sold

The traffic on the freeway is moving at a constant speed of : a car sits in an entrance ramp to a freeway waiting for a break in the traffic. the driver sees a small gap between a

Ruth ames died on january 10 2012 in filing the estate tax : ruth ames died on january 10 2012. in filing the estate tax return her executor melvis sims elects the primary

A new containment vessel for nuclear waste is being tested : a new containment vessel for nuclear waste is being tested by a group of engineers working for the u.s. department of

User Account

All Pages