Prepare an absorption costing income statement. In your computations, round unit
ID: 2465580 • Letter: P
Question
Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.
Income Statement-Absorption Costing
For the Month Ended June 30, 2014
$
Cost of goods sold:
$
$
Income from operations
$
Reconcile the variable costing income from operations of $1,255,000 with the absorption costing income from operations determined in (a).
Tudor Manufacturing Co.
Income Statement-Absorption Costing
For the Month Ended June 30, 2014
Variable costing income from operations
$
Absorption costing income from operations
Difference
$
Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.
Income Statement-Absorption Costing
For the Month Ended June 30, 2014
$
Cost of goods sold:
$
$
Income from operations
$
b.Reconcile the variable costing income from operations of $1,255,000 with the absorption costing income from operations determined in (a).
Tudor Manufacturing Co.
Income Statement-Absorption Costing
For the Month Ended June 30, 2014
Variable costing income from operations
$
Absorption costing income from operations
Difference
$
Explanation / Answer
b) variable costing income from operations = $ 1,255,000
absorption costing income from operations = $ 1,280,600
diffrence = $ 25,600
Sales $ 7,450,000 Less cost of goods sold: Beginning inventory 0 Cost of goods manufactured (500,000 × $14.32) 7,160,000 ——— Cost of goods available for sale 7,160,000 Closing inventory (80,000 × 14.32 ) (1,145,600) 6,014,400 ——— ——— Gross profit 1,435,600 Less marketing and administrative expenses: Variable expenses () 80,000 Fixed expenses 75,000 155,000 ——— ——— Net operating income 1,280,600 ———