Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2.) rubber soleis a division of shoes products cor

2.) Rubber Soleis a division of Shoes Products Corporation. The division manufactures and sells rubber...

70.2K

Verified Solution

Question

Accounting

image
2.) Rubber Soleis a division of Shoes Products Corporation. The division manufactures and sells rubber soles. Last year, the division manager decided to produce 250,000 units. however total sales were 220,000 units for $9 per unit. Other information is presented below: Division Information for 2020 Beginninginventory 0 Sales in units 220,000 units Selling price per unit $9 Variable manufacturing costs per unit $3 (DM+DL+Variable MOH) Fixed manufacturing overhead costs (total) $500,000 Production amount 250,000 units Variable selling and administrative expense $0.30 Fixed selling and administrative expense (total) $17,000 (a) Prepare an absorption costing income statement (b) Prepare a variable costing income statement. (c) Reconcile the difference in operating incomes under the two approaches and explain what accounts for this difference

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students