Which of the folowing kindsCengage Online teaci x bsorption and Variable Costing

Question

Which of the folowing kindsCengage Online teaci x bsorption and Variable Costing Income Statements During the first month of ummarized as follows: operations ended July 31, YoSan Inc manufactured 9,200 fiat panel televisions, of which 8,600 were soid. Operating data for the month are $3,075,000 Direct materials $542,800 Variable manufacturing cost Fixed manufacturing cost 165,600 38,000 73,600 920,000 Seing and administrative expenses: 9, 600 125,600 Required Prepare an income statement based on the absorption costing concept Absorption Costing Income Statement Coot of goods sole 5 0.

Explanation / Answer

Absorption Costing income statement Sales 1,075,000 cost of goods sold cost of goods manufactured 920,000 less:Ending inventory (920,000/9200)*600 60000 cost of goods sold 860,000 Gross profit 215,000 less:Selling & administrative expense 125,600 Net operating income 89,400 Variable costing income statement Sales 1,075,000 Variable cost of goods sold Variable cost of goods manufactured 846400 less:Ending inventory (845600/9200)*600 55200 Variable cost of goods sold 791200 manufacturing margin 283,800 less:Variable and selling administrative expense 86,000 Contribution margin 197,800 Fixed costs: Fixed manufacturing cost 73,600 Fixed selling & administrative cost 39,600 total fixed expense 113,200 Net operating income 84,600 the income from operations reported under absorption costing exceeds the income from operations reported under variable costing by the difference between the two due to fixed manufacturing costs that are deferred to a future month under absorption costing.

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