its long but i need help!! Thank you! BACK Extra Problem 19-7A Jackson Company p
ID: 2548711 • Letter: I
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its long but i need help!! Thank you! BACK Extra Problem 19-7A Jackson Company produces plastic that is used for injection-molding applications produced 3,500 tons of plastic and sold 2,800 tons. In 2017, the production and sales results were exactly reversed. In each varat ema acturing costs were 15% oft esa es pice of units produced, war able se ng expenses were % ofthe sea ng pree or such as gears for small motors. In 2016, the first year of operations, Jackson year, the selling price per ton was $2,200, nied manner n g its sol $510,000. a by Study Prepare Income Prepare income statements for each year using variable costingExplanation / Answer
1 Absorption costing 2016 2017 Variable manufacturing cost 330 330 Fixed manufacturing (2555000/3500) 730 913 (2555000/2800) Total product cost 1060 1242.5 Units produced 3500 2800 Units sold 2,800 3,500 Income statement 2016 2017 Sales revenue 6160000 7700000 cost of goods sold Beginning inventory 0 742000 cost of goods manufactured 3710000 3479000 Add Goods available for sale 3710000 4221000 Ending inventory 742000 0 Less Cost of goods sold 2968000 4221000 Gross profit 3192000 3479000 Selling and admin expenses Less Variable selling and admin expense $242 677600 847000 Fixed Admin expense 510000 510000 Total Selling and admin expenses 1187600 1357000 Net operating income 2004400 2122000 2 Variable costing 2016 2017 Variable manufacturing cost 330 330 Units manufactured 3500 2800 Units sold 2,800 3,500 Income statement Sales revenue 6160000 7700000 Less Variable expense Variable cost of goods sold 924000 1155000 Variable selling and admin expense 677600 847000 Total variable expense 1601600 2002000 Contribution margin 4558400 5698000 Less Fixed cost Fixed manufacturing expense 2555000 2555000 Fixed Admin expense 510000 510000 Total fixed expenses 3065000 3065000 Net operating income 1493400 2633000
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