Prepare an income statement for the year ended December 31, 2012, through gross
ID: 2729896 • 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 1,100 units at $93 per unit. (Note: Normal production is 9,000 units) Standard: 3 yards per unit @ $4.50 per yard Actual yards used: 3,330 yards @ $6.00 per yard Standard: 3 hours per unit @ $14.40 Actual hours worked: 3,370 @ $12.90 per hour Standard: Variable overhead $0.70 per unit Standard: Fixed overhead $2.80 Actual total factory overhead $9,330 (budgeted and actual amount)
Explanation / Answer
Income Statement Amount in $ Amount in $ Actual Sales (1100Units * $ 93) 102,300.00 Less: Cost of Good sold: Cost of Yards used (3300yards * $6.00) 19,800.00 Labor cost (3370 hours * $12.90) 43,473.00 Total overhead cost 9,330.00 72,603.00 Gross Profit 29,697.00 Income statement Budgeted Sales (9000 Units *$ 93) 837,000.00 Less: Cost of Good sold: Cost of Yards used (9000 Units * 3 yards * $4.5 ) 121,500.00 Labor cost (9000 units * 3 hours * $14.40) 388,800.00 Variable Overhead costs (9000 units * $0.70) 6,300.00 Fixed Overhead costs (9000 units * $2.40) 21,600.00 538,200.00 Gross Profit 298,800.00