Prepare income statements using variable costing and absorption costing. Alexandra Manufacturing manufactures a single product.? Cost, sales, and...

50.1K

Verified Solution

Question

Accounting

Prepare income statements using variable costing andabsorption costing.
Alexandra Manufacturing manufactures a single product.? Cost,sales, and production information for the company and its singleproduct is as? follows:
Sales price per unit $49
Variable manufacturing costs per unit manufactured (DM,DL andvariable MOH) $30
Variable operating expenses per unit sold $3
Fixed manufacturing overhead (MOH) in total for the year$114,000
Fixed operating expenses in total for the year $46,000
Units manufactured during the year 19,000 units
Units sold during the year 16,500 units
Requirement 1. Prepare an income statement forthe upcoming year using variable costing.
Requirement 2. Prepare an income statement forthe upcoming year using absorption costing.

Answer & Explanation Solved by verified expert

3.6 Ratings (484 Votes)

Answer1 Alexandra Manufacturing Income statement Using variable costing approach Particulars Amount Sales a 16500 units49 per unit 808500 Less Variable cost of goods sold b Opening inventory NIL Add Variable cost of goods manufactured 19000 units30 per unit 570000 Variable cost of goods available for sale 570000 Less See Answer

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