Prepare the income statement using variable costing

Assignment Help Accounting Basics

Reference no: EM131883841

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: EM131883841

Questions Cloud

What are consequences of the payment of share dividend : What are the consequences of the payment of a share dividend on the share price?

Determine the total estimated overhead : In September 2015, Lionel Town PLC management team plans to achieve breakeven profit by the end of the fourth quarter in their recently developed sporting.

Difference between growing annuity and growing perpetuity : What is net working capital? Why a low value for number might be considered Undesirable? What is the difference between growing annuity and growing perpetuity.

Explain author current view on chosen organization theory : This Journal discusses the term of "deep dive" when it comes to government organizational structure. Explain author current view on chosen organization theory

Prepare the income statement using variable costing : Hank Company manufactures and sells one product. Sales and production information is contained below.

Payment of share dividend on the share price : What are the consequences of the payment of a share dividend on the share price?

Computing the irr for the project : (Project Evaluation ) Dog up! Frank is looking at a new sausage system with an installed cost of $560000.this cost will be depreciated straight-line.

Examine the casualty insurance policy : The prepaid insurance account shows a debit of $6,000, representing the cost of a 2-year casualty insurance policy dated September 1 of the current year.

Develop scope statement for project : The city of Greendale wants to contract with your company to build a new baseball stadium. Develop a scope statement for this project.

User Account

All Pages