ACCOUNTING Week # 12 HW: Chapter 19 3. volue: 2.00 polnts Saes commantyon omanuf

Question

ACCOUNTING Week # 12 HW: Chapter 19 3. volue: 2.00 polnts Saes commantyon omanufaure af tablet computers, began oerations on January 1, 2015. ts cost and sales information for this year follows. Manufacturing costs Direct materials Direct labor Overhead costs for the year 35 per unit 55 per unit Variable overhead $3,300,000 $7,700,000 Fixed overhead Selling and administrative costs for the year Variable Fixed $ 775,000 $5,000,000 · "oduction and sales for the year Units produced Units sold Sales price per unit 110,000 units 80,000 units S360 per unit 1. Prepare an income statement for the year using variable costing

Explanation / Answer

SIMS COMPANY Income Statement (Variable costing) Sales (80,000*$360) $ 28,800,000 Variable Expenses Direct Material (80,000*$35) $ 2,800,000 Direct Labour ($80,000*$55) $ 4,400,000 Variable Manufacturing overhead ($3,300,000/110,000*80,000) $ 2,400,000 Variable selling administrative expenses $     775,000 Total Variable expenses $ 10,375,000 Contribution Margin $ 18,425,000 Fixed Expenses Fixed Manufacturing overhead $ 7,700,000 Fixed selling and administrative expenses $ 5,000,000 Total Fixed Expenses $ 12,700,000 net operating income (Loss) $    5,725,000

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