80.2K

Verified Solution

Link Copied!

Winslow Inc. Product Income Statements-Absorption Costing For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues $292,900 $246,000 $513,900 (267,200) (143,500) (164,800) Cost of goods sold Gross profit Selling and administrative expenses $246,700 $149,400 $81,200 (212,200) (107,600) (135,600) Operating income $34,500 $41,800 $(54,400) In addition, you have determined the following information with respect to allocated fixed costs: Golf Cross Training Shoes Running Shoes Shoes Fixed costs: Cost of goods sold $82,200 $38,100 $34,400 Selling and administrative expenses 61,700 35,100 34,400 These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determined that the effects of inventory may be ignored b. Prepare a variable costing income statement for the three products. Enter a net loss as a negative number using a minus sign. Winslow Inc. Variable Costing Income Statements-Three Product Lines For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues 513,900 292,900 246,000 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs 82,200 38,100 34,400 Fixed selling and administrative expenses Total fixed costs Operating income (loss)

Answer & Explanation Solved by verified expert

See Answer