Sims Company began operations on January 1. Its cost and sales information for this year follow. $ 30 per unit $50 per unit $20 per unit $ 8,400,000 per year $ 11 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price $4,750,000 per year 105,000 units 75,000 units 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $ 350 per unit
Sims Company began operations on January 1. Its cost and sales information for this year follow. $ 30 per unit $50 per unit $20 per unit $ 8,400,000 per year $ 11 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price $4,750,000 per year 105,000 units 75,000 units 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $ 350 per unit
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Step 1: Introduction
VIEWStep 2: Fixed Manufacturing OH Absorption Rate
VIEWStep 3: Cost of Goods Sold Under Absorption Costing
VIEWStep 4: Selling & Administrative Expenses Using Absorption Costing
VIEWStep 5: Variable Costing Income Statement
VIEWStep 6: Absorption Costing Income Statement
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