Prepare the income statement using absorption costing

Assignment Help Accounting Basics

Reference no: EM131884209

Question: 1. Hank Company manufactures and sells one product. Sales and production information is contained below.

· Selling price per unit $65

· Variable manufacturing costs per unit produced (DM, DL, and variable MOH) $36

· Variable operating expenses per unit sold $6

· Fixed manufacturing overhead (MOH) in total for the year $216,000

· Fixed operating expenses in total for the year $75,000

· Units produced during the year 18,000

· Units sold during the year 15,000

(a) Prepare the income statement using variable costing.

(b) Prepare the income statement using absorption costing.

Reference no: EM131884209

Questions Cloud

Write about the physical space and setup of the museum : Choose a museum or gallery to visit by researching the exhibitions they have to offer.

What are the sections shown on a classified balance sheet : What are the sections shown on a classified balance sheet and define one of the sections listed.

Provide the steps you followed to fact check the story : Provide the steps you followed to fact check the story. The story must be a political story and provide a brief biography on the author of the story.

What is the net present value of this mri project : What is the net present value of this MRI project? Should Winston Clinic accept this project?

Prepare the income statement using absorption costing : Hank Company manufactures and sells one product. Sales and production information is contained below.· Selling price per unit $65

Experiencing rapid growth-what is the stock price : Navel County Choppers Inc. is experiencing rapid growth. what is the stock price?

How would adding multimedia to your lessons help improve : What multimedia would you like to add to your classroom to help improve your learning environment?

What is the target share price five years from now : If the benchmark PE ratio is 19, what is the target share price five years from now?

How is the income of the given business entities taxed : Can shareholders of a C corporations deduct its losses against corporation's E&P passed to its shareholders as dividends (i.e. income of shareholders)?

User Account

All Pages