Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 3 succulent juice company manufactures and sells p

3 Succulent juice Company manufactures and sells premium tomato juice by the gallon. Succulent just...

70.2K

Verified Solution

Question

Accounting

image

3 Succulent juice Company manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations. The following data relates to this first year of operations. Number of Gallons Produced 80,000 Number of Gallons sold 70,000 Sales Price $3.00 per gallon Unit Product Cost (variable costing) $1.45 per gallon Contribution Margin $84,000 Total Fixed Manufacturing Overhead Total fixed Selling & Administrative $25,000 Variable Selling and Administrative Costs Inventory value under absorption costing $29,500 3.1 Prepare an Income Statement for Succulent using the Absorption Costing Method. (Hints: How many units were in inventory? What was the cost per unit? Why is the CM only $84,000?). Sales COGS Gross Margin SG&A Net Income 3.2 Explain in one or two sentences, the key difference between the net income under Absorption and the net income under Variable costing. Determine the variable costing net income. Do not prepare a variable costing income statement

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

Biology
1.2K views

need new and unique answers, please. (Use your own words, don't copy and paste), Please Use your keyboard...

Physics
1.2K views

In a spring gun system, a spring with a spring force constant 420 N/mN/m  , is compressed...

Physics
1.2K views

The potential energy of a particle of mass 1 kg in motion along the x...

Basic Math
1.2K views

The water line on a dental unit fits through a rubber tube that is lined...

Statistics
1.2K views

In your own words what is the difference between a discrete and continuous variable

Accounting
1.2K views

Skidmore Music Company had the following transactions in March: a. Sold instruments to customers for...

Accounting
1.2K views

Una antigedad de las cuentas por cobrar indica que el monto de las cuentas incobrables...

Accounting
1.2K views

Jay Rexford, president of Photo Artistry Company, was just concluding a budget meeting with his...

Accounting
1.2K views

4 Exercise 9-6 Percent of sales method; write-off LO P3 20 points At year-end (December...

Accounting
1.2K views

Drop-down menu: Favorable, unfavorable and neither Question 18 Charlatte Company has determined that the...

Accounting
1.2K views

a. 515,900 b. 917,075 c. $19,800 d. $22,725

Accounting
1.2K views

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month...