Please be aware that I need a income statement for each year one for 2016 and on
ID: 2556689 • Letter: P
Question
Please be aware that I need a income statement for each year one for 2016 and one for 2017 a edugen.wileyplus.com -Privgte Browsing Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 4,000 tons of plastic and sold 3,500 tons. and sales results were exactly reversed. In each year, the selling price per ton was $2,000, variable manufacturing costs were 15% of the sales price of units fixed manufacturing costs were $2,800,000, and fixed administrative expenses were $500,000. In 2017, the production produced, variable selling expenses were 10% of the selling price of units sold, Prepare income statements for each year using variable costing ACKSON COMPANY Income Statement JACKSON COMPANY Income Statement a)Explanation / Answer
First year INCOME STATEMENT UNDER VARIABLE COSTING Sales revenue (3500 units @2000) 7,000,000 Less: Variable cost of goods sold Beginning inventory 0 Add: Current variable manufacturing Cost 1200000 Total goods available for sale 1200000 Less: Ending Inventory 150000 Variable cost of goods sold@300 1050000 Variable selling cost @200 700000 1750000 Contribution: 5250000 Less: Fixed manufacturing Cost 2,800,000 Less: Fixed Admin expense 500,000 3,300,000 Net Income 1,950,000 Ssecond Year INCOME STATEMENT UNDER VARIABLE COSTING Sales revenue (4000 units @2000) 8,000,000 Less: Variable cost of goods sold Beginning inventory 150,000 Add: Current variable manufacturing Cost 1050000 Total goods available for sale 1,200,000 Less: Ending Inventory 0 Variable cost of goods sold@300 1,200,000 Variable selling cost @200 800,000 20,000,000 Contribution: 6,000,000 Less: Fixed manufacturing Cost 2,800,000 Less: Fixed Admin expense 500,000 3,300,000 Net Income 2,700,000