Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
Answer:
1a Absorption Costing Income Statement for July:
Sales $104,000
Cost of Goods Sold:
Variable ($81,920/6,400*5,200) $66,560
Fixed ($15,360/6,400*5,200) $12,480 $79,040
Gross Profit $24,960
Less: Selling and Administrative Expenses
Variable $10,920
Fixed $5,200 $16,120
Operating Income/(Loss) $8,840
1b. Absorption Costing Income Statement for August
Sales $104,000
Cost of Goods Sold
Variable $66,560
Fixed $18,240 $84,800
Gross Profit $19,200
Less: Selling & Admin Exp.
Variable $10,920
Fixed $5,200 $16,120
Operating Income (Loss) $3,080
2. Variable Costing Income Statement for July and August:
July August
Sale A $104,000 $104,000
Variable Expenses
Manufacturing $66,560 $66,560
Selling and Administrative $10,920 $10,920
Total Variable Expenses B $77,480 $77,480
Contribution Margin A-B $26,520 $26,520
Less: Fixed Costs
Manufacturing $15,360 $15,360
Selling and Administrative $5,200 $5,200
Operating Income $5,960 $5,960
3 Reconciliation Statement for July and August:
July August
Absorption Costing Operating Income $8,840 $3,080
Add: Fixed Manufacturing Cost in $0 $2,880
Beginning Finished Goods Inventory
Less: Fixed Manufacturing Cost in ($2,880) $0
Ending Finished Goods Inventory
Variable Costing Operating Income $5,960 $5,960
Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.