Prepare an income statement for the upcoming year using variable costing. 2. Pre
ID: 2340879 • Letter: P
Question
Prepare an income statement for the upcoming year using variable costing.
2.
Prepare an income statement for the upcoming year using absorption costing.
3.
What causes the difference in income between the two methods?
Prepare an income statement for the upcoming year using variable costing.
2.
Prepare an income statement for the upcoming year using absorption costing.
3.
What causes the difference in income between the two methods?
Homework: Week 4 Homework (graded) Score: 0 of 10 pts S6-16 (similar to) 4 of 6 (2 complete) Amber Manufacturing manufactures a single product Cost, sales, and production antormation for the c (Click the icon to view the data.) Read the requirements Requirement 1. Prepare an income statement for the upcoming year using variable costing More Into L X Amber Manufacturing Contribution Margin Income Statement (Variable Costing) For the Year Ended December 31 Sales price per unit $5 .Vaiable manufacturing costs per unit manufactured (DM. DL and . Variable operating expenses per unit sold $4 r Fiwed manufacturing overhead (MOH) in total for the year $192,000 aniable MOH) S27 Less IFixed operating expenses in total for the year $49.000 Units manufactured during the year 16,000 units Units sold during the year 13,000 units Less: Print Done Choose from any list or enter any number in the input fields and then click Check Answer Clear All partsExplanation / Answer
(a) Amber manufacturing Contribution margin Income Statement (Variable Costing) For the year ended December 31 Sales(13,00 X $52) $ 6,76,000 Less: Variable expenses: Variable cost of goods sold (13,00 X $27) $ 3,51,000 Variable operating expenses (13,000 X $4) $ 52,000 Add: Contribution margin $ 2,73,000 Less: Fixed Expenses: Fixed Manufacturing overhead $ 1,92,000 Fixed operating expenses $ 49,000 Net operating Income $ 32,000 (b) Amber manufacturing Contribution margin Income Statement (Absorption Costing) For the year ended December 31 Sales(13,00 X $52) $ 6,76,000 Less: Cost of Goods Sold (W.N.) $ 5,07,000 GrossProfit $ 1,69,000 Less: Operating expenses Variable operating expenses (13,000 X $4) $ 52,000 Fixed operating expenses $ 49,000 Net Operating Income $ 68,000 Workings (W.N.): Cost of Goods Sold Variable cost of goods sold per unit $ 27 Fixed cost of goods sold per unit ($1,92,000 / 16,000 units) $ 12 $ 39 Cost of Goods Sold (13,000 X $39) $ 5,07,000 (c) Net operating income under variable costing $ 32,000 Add: Fixed Manufacturing overhead cost deferred in inventory under absorbtion costing (3,000 X $12) $ 36,000 Net operating income under absorbtion costing $ 68,000