The following information is taken from the records of the

Reference no: EM13481561

The following information is taken from the records of the Kingland Manufacturing Company for the year ending December 31, 2009. There were no beginning or ending inventories. Sales $13,000,000 Long-term factory $100,000 Sales Commissions 500,000 Factory Superintedents 30,000 Salary Advertising 400,000 Factory supervisors‘ 100,000 Salaries Shipping expenses 300,000 Direct Materials used 4,000,000 Administrative executive salaries 100,000 Direct labor 2,000,000 Administrative clerical salaries 400,000 Cutting bits used 60,000 Fire insurance on factory equip 2,000 Factory methods 40,000 research Property taxes on factory equip 30,000 Abrasives for machining 100,000 Indirect labor 800,000 Depreciation of factory 400,000 equip Prepare a contribution income statement and an absorption income statement. If you are in doubt about any cost behavior pattern, decide on the basis of whether the total cost is question will fluctuate substantially over a wide range of volume.

Prepare a separate supporting schedule of indirect manufacturing costs subdivided between variable and fixed costs. Suppose that all variable costs fluctuate directly in proportion to sales, and that fixed costs are unaffected over a wide range of sales. What would operating income have been if sales had been $12 million instead of $13 million? Which income statement did you use to help get your answer? Why?

Reference no: EM13481561

Questions Cloud

You have decided to purchase a car you have found a clean : you have decided to purchase a car. you have found a clean used car that will cost you 8500. you can finance your

The following were taken from the unadjusted trial balance : the following were taken from the unadjusted trial balance of orion co. a congressional lobbying firm. indicate whether

Does the company prepare interim financial statement what : select a company that u can visit in person or interviewon the telephone. call ahead to the company to arrange a time

Conglomco corporation manufactures and sells widgets for : cost analysissolve problems 1 and 2 based on the information in the following scenario.conglomco corporation

The following information is taken from the records of the : the following information is taken from the records of the kingland manufacturing company for the year ending december

Indicate how engle wouldreport the unsold boats and for how : engle marine builds 30-foot fiberglass fishing boats which itmarkets through a network of 3rd party dealers on

Open the ledger accounts for the account titles referred in : problem 2-5a recording transactions posting to ledger preparing a trial balance l.o. c3 a1 p1 p2 business transactions

Black hair in the guinea pig is dominant to white hair in : black hair in the guinea pig is dominant to white hair in families of 5 offsprings where both parents are heterozygous

The following accounts were taken from the unadjusted : the following accounts were taken from the unadjusted trial balance of orion co a congressional lobby firm. indicated

User Account

All Pages