Huang Company operates with a single product. The followingsimple income statement relates to last...

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Accounting

Huang Company operates with a single product. The followingsimple income statement relates to last year when sales unitstotaled26,500
                         VariableCosting                                              GAAP Absorption Costing
                                                  Total $     Per unit$                                        Total $
Sales                                         530,000    20.00            Sales                               x
VariableCOGS                        185,500      7.00            COGS                             x
Variable S&Aexpense              92,750       3.50             Grossmargin                 x
Contributionmargin               251,7509.50             S&Aexpenses               x
Fixed Man Ovrhd expenses    121,500                          Net operating income       x
Fixed S&Aexpenses                42,000
Net operatingincome               88,250
Huang Company unit production for the year totaled 27,000.
Prepare a GAAP income statement for Huang Company. Reconcile anydifference between the Variable costing and GAAP net operatingincomes.

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Solution Part A GAAP income statement for Huang Company Huang Company Income Statement for the Year Particulars Amount Amount Sales 27000 20unit 540000 Cost of Goods sold Variable COGS 27000 7unit 189000 Fixed Man Overhead 121500 310500 Gross Profit 229500 Operating Expenses Selling See Answer

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In: AccountingHuang Company operates with a single product. The followingsimple income statement relates to last year...Huang Company operates with a single product. The followingsimple income statement relates to last year when sales unitstotaled26,500 VariableCosting GAAP Absorption Costing Total $ Per unit$ Total $Sales 530,000 20.00 Sales xVariableCOGS 185,500 7.00 COGS xVariable S&Aexpense 92,750 3.50 Grossmargin xContributionmargin 251,7509.50 S&Aexpenses xFixed Man Ovrhd expenses 121,500 Net operating income xFixed S&Aexpenses 42,000Net operatingincome 88,250Huang Company unit production for the year totaled 27,000.Prepare a GAAP income statement for Huang Company. Reconcile anydifference between the Variable costing and GAAP net operatingincomes.