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Income statement with variances

Bellingham Company produces a product that requires 2.5 standard pounds per unit at a standard price of $3.00 per pound. Assume Bellingham sold 19,000 units at $162 per unit. The company used 35,000 pounds to produce 19,000 units, which were purchased at $3.25 per pound. Each unit requires 3 standard direct labor hours per unit at a standard hourly rate of $20.05 per hour. For the 19,000 units produced, 62,200 hours were needed and employees were paid an hourly rate of $19.90 per hour. The company uses a standard variable overhead cost per unit of $0.80 per direct labor hour. Actual variable factory overhead was $30,400. The company uses a standard fixed overhead cost per unit of $1.05 per direct labor hour at 45,000 hours, which is 100% of normal capacity.

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Prepare an income statement through gross profit for Bellingham Company for the month ending March 31. For those boxes in which you must enter subtractive or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank.

Bellingham Company
Income Statement Through Gross Profit
For the Month Ended March 31
Sales						$
Cost of goods sold at standard
Gross profit at standard						$
		Favorable		Unfavorable
Variances from standard cost:
Direct materials price		$		$
Direct materials quantity
Direct labor rate
Direct labor time
Factory overhead controllable
Factory overhead volume
Net variances from standard cost - unfavorable
Gross profit						$

Prepare an income statement through gross profit for Bellingham Company for the month ending March 31. For those boxes in which you must enter subtractive or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank. Bellingham Company Income Statement Through Gross Profit For the Month Ended March 31 $ Sales 3,078,000 Cost of goods sold - at standard 1,390,800 $ Gross profit - at standard 1,687,200 Favorable Unfavorable Variances from standard cost: $ Direct materials price 0 Direct materials quantity DEL Direct labor rate Direct labor time o Factory overhead controllable 0 Factory overhead volume 0 Net variances from standard cost - unfavorable -0 X $ Gross profit 1,687,200 x

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