Prepare an income statement for the year ended December 31, 2012, through gross
ID: 2493187 • Letter: P
Question
Prepare an income statement for the year ended December 31, 2012, through gross profit for Aframe Company using the following information. Assume Aframe Company sold 1,500 units at $115 per unit. (Note: Normal production is 9,000 units) Standard: 4 yards per unit @ $6.30 per yard Actual yards used: 6,060 yards @ $4.80 per yard Standard: 3 hours per unit @ $14.30 Actual hours worked: 4,410 @ $14.10 per hour Standard: Variable overhead $2.30 per unit Standard: Fixed overhead $2.80 Actual total factory overhead $12,350
Explanation / Answer
income statement for the year ended December 31, 2012 S,nl particulars amount $ 1 sales 1500*115 172500 2 material 6060*4.8 29088 3 labour 4410*14.1 62181 4 total factoryoverhead 1500*2.3 12350 income(1-2-3-4) 68881