90.2K

Verified Solution

Link Copied!

Arcade Away manufactures video games that it sells for $40 each. The company uses a fixed manufacturing overhead allocation rate of $4 per game. Assume all costs and production levels are exactly as planned. The following data are from Arcade Away's first two months in business during 2018: (Click the icon to view the data.) Read the requirements. - X Data table costing costing $ 17 $ costing 13 costing $ 17 $ Total product cost per game 13 Requirement 2a. Prepare monthly income statements for October and November, including columns for each month and a total column, using absorption costing. October Sales 1,300 units 2,200 units November 3,000 units 2,200 units $ 13 S 13 Production Variable manufacturing cost per game Sales commission cost per game Total fixed manufacturing overhead Total fixed selling and administrative costs 3 3 8,800 Arcade Away Absorption Costing Income Statement October 2018 November 2018 Total Net Sales Revenue $ 52,000 $ 120,000 $ 172,000 Cost of Goods Sold 22,100 51,000 73,100 Gross Profit 29,900 69,000 98,900 Selling and Administrative Costs 12,400 17,500 $ 17,500 $ 51,500 $ 69,000 Operating Income Requirement 2b. Prepare monthly income statements for October and November, including columns for each month and a total column, using variable costing. 8,800 8,500 8,500 29,900 Print Done Arcade Away Variable Costing Income Statement October 2018 November 2018 Total Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Help me solve this Demodocs example Get more help Clear all

Answer & Explanation Solved by verified expert

See Answer