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Home / Questions / The variable costing income statement for Jackson Company for this year is as follows

The variable costing income statement for Jackson Company for this year is as follows

The variable costing income statement for Jackson Company for this year is as follows:

 

Sales (5,000 units)$100,000

Variable expenses:

Cost of goods sold$30,000

Selling (10% of sales)10,00040,000

Contribution margin$  60,000

Fixed expenses:

Manufacturing overhead$24,000

Administrative14,40038,400

Net income$  21,600

 

Selected data for this year concerning the operations of the company are as follows:

 

Beginning inventory-0- units

Units produced8,000 units

 

Manufacturing costs:

Direct labour$3.00 per unit

Direct materials1.60 per unit

Variable overhead1.40 per unit

 

Required: Prepare an absorption costing income statement for this year.

 

 

2.Baker Company produced 30,000 units and sold 28,000 units in 2010. Beginning inventory was zero. During the period, the following costs were incurred:

 

Indirect labour$  60,000

Indirect materials30,000

Other90,000

Fixed manufacturing overhead180,000

Fixed administrative expenses150,000

Fixed selling expenses120,000

Variable selling expenses, per unit40

Direct labour, per unit80

Direct materials, per unit20

 

Required: Compute the dollar amount of ending inventory using:

A.Absorption costing

B.Variable costing

 

 

 

3.Ellie Manufacturing Company produces three products: A, B, and C. The income statement for this year is as follows:

 

Sales$200,000

Less: Variable expenses127,000

Contribution margin$  73,000

Less fixed expenses:

Manufacturing$20,000

Selling and administrative14,00034,000

Net income$  39,000

 

The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows:

 

A    BC

Sales$60,000$40,000$100,000

Contribution margin ratio35%30%40%

Direct fixed expenses of products$  8,000$  5,000$4,000

 

Required: Prepare income statements segmented by products. Include a column for the entire firm in the statement.

Mar 13 2020 View more View Less

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