nformation, C Oak Mart, A Producer Of Sc Hayek Bikes prepares the in + v cthtml
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nformation, C Oak Mart, A Producer Of Sc Hayek Bikes prepares the in + v cthtml No results Options ? k my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 325 bikes were produced and 215 were sold; this left 110 bikes in ending inventory. The income statement information under variable costing follows. sales (215 x $1,675) variable product cost (215 x $675) Variable selling and administrative expenses (215 x $50) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $360,125 145,125 10,750 284, 250 61,750 95,000 s 47,508 1. Prepare this company's income statement for its first month of operations under absorption costing. (Round your intermediate calculations to the nearest whole dollar.) ere to searchExplanation / Answer
1 Absorption costing Variable manufacturing cost 675 Fixed manufacturing (61750/325) 190 Total product cost 865 Units produced 325 Units sold 215 Income statement Sales revenue 360125 cost of goods sold Beginning inventory 0 cost of goods manufactured 281125 (865*215) Add Goods available for sale 281125 Ending inventory 95150 (865*110) Less Cost of goods sold 185975 Gross profit 174150 Selling and admin expenses Less Variable selling and admin expense 10750 Fixed Admin expense 95000 Total Selling and admin expenses 105750 Net operating income 68400 Net operating income variable costing 47500 Add Ending inventory Fixed manufacturing 20900 (190*110) Net operating income absorption costing 68400
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