Variable costing income statement

Variable costing income statement - reconciliation

Assignment Help Financial Accounting

Reference no: EM13183617

Variable Costing Income Statement; Reconciliation

Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below:

655_What was the relation between unit sales2.png

The company's selling and administrative expenses consist of $210,000 per year in fixed expenses and $2 per unit sold in variable expenses. The $16 per unit product cost given above is computed as follows:

1029_What was the relation between unit sales3.png

Required:

1. Redo the company's income statement in the contribution format using variable costing.
2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above

Reference no: EM13183617

Questions Cloud

State the law of diminishing marginal utility : produce the product at the lowest variable cost and sell as many as you can at the highest acceptable price. produce the product at the lowest fixed cost and sell as many as you can at highest acceptable price in the marketc. produce the product at ..

State and specify the hybrid orbitals that overlap : Draw a Lewis structure for each of the following compounds. Specify the hybrid orbitals that overlap to form each bond. Then label each bond as a pi or sigma bond

Relation between unit sales and unit production : What was the relation between unit sales and unit production levels in each year? For each year, indicate whether inventories grew or shrank.

Define have a bunch of pennies and dimes : How many dimes do you need to buy as much candy as possible? How much should all these dimes weigh? How many pieces of candy could you buy? How much would this candy weigh? How many pieces of candy could you buy with twice as many dimes?

Variable costing income statement - reconciliation : Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above

Write a report addressing a quantitative analysis project : Write a report addressing a quantitative analysis (QA) project. Select a business of interest and develop QA best practices that can be developed and implemented to increase revenues and/or to decrease costs. Please provide at least three mathe..

State what is the concentration of calcium if the carbonate : The solid calcium carbonate is placed in water. It reaches equilibrium and has a solubility product constant of 4.95 x 10-9. What is the concentration of calcium if the carbonate concentration

Conversion equations to calculate the degrees in celsius : Generate the conversion equations to calculate the degrees in Celsius, Fahrenheit and Kelvin. Hint: Freezing point of water is found at 5.5 'N

What is the value of future amount at eoy : A future amount of $150,000 is to be accumulated through annual payments, A, over 20 years. The last payment of A occurs simultaneously with the future amount at EOY 20. If the interest rate is 9% per year, What is the value of A?

User Account

All Pages