ew History Bookmarks Window Help Problem 11-23A Absorption versus variable costi

Question

ew History Bookmarks Window Help Problem 11-23A Absorption versus variable costing LO 11-4 Baird Manufacturing Company makes a product that sells for $74.20 per unit. Manufacturing costs for the product amount to $26.80 per unit variable, and $84,050 fixed. During the current accounting period, Baird made 4,100 units of the product and sold 3,500 units. Selling and administrative expenses were zero. a. Prepare an absorption costing income statement b. Prepare a variable costing income statement Complete this question by entering your answers in the tabs below. Required A Required B Prepare an absorption costing income statement. (Do not round intermediace calculations.) G COMPANY CPrev 3 o 0 Next> 8 MacBook Air 3 4 5 7

Explanation / Answer

Absortion Costing Income statement:

Units sold :3,500*74.20 = 259,700

Less: Variable cost: 26.80*3,500 = 93,800

Less: Fixed overhead cost: 84.050*4100 = 344,605

Income = 178,705

PartB. Variable Income Statement

Units sold :3,500*74.20 = 259,700

Less: Variable cost: 26.80*3,500 = 93,800

Less: Fixed overhead cost: 84.050*3,500 = 294,175

Income = 128,275.

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