Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. trez company began operations this year. during th

Trez Company began operations this year. During this first year, the company produced 100,000 units...

80.2K

Verified Solution

Question

Accounting

image
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. $3,500,000 Sales (80,000 units K $45 per unit) Coat of goods sold Beginning inventory Cont of yooda manufactured (100,000 units 025 per unit) Coat of goods available for sale Ending Inventory (20,000 $25) Cost of yoods sold Gross margin Belling and administrative expenses Net Income 2,500,000 2,500,000 500,000 2,000,000 1,600,000 530.000 $1,070,000 1 Additional Information a. Selling and administrative expenses consist of $350,000 in annual fixed expenses and $2.25 per unit in variable selling and administrative expenses. b. The company's product cost of $25 per unit is computed as follows. Direet material Direct labox Variable overhed Fixed overhead (1000.000 100.000 unita 0.4 per unit 511 per unit $2 per unit per unit Required: 1. Prepare an income statement for the company under variable costing 2. Fill in the blanks

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