Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The comp
ID: 2374667 • Letter: W
Question
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant%u2019s operation.
Because the new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.
Prepare an income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)
Prepare a contribution format income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant%u2019s operation.
Explanation / Answer
Determine the unit product cost. ( Direct material 17 ============================================================================================================================================================================================= Direct labour 8 ============================================================================================================================================================================================= Variable manufacturing overhead 2 ============================================================================================================================================================================================= Fixed manufacturing overhead= = 792 000 /44 000= 18 ============================================================================================================================================================================================= Absorption coting per product unit = 50 dollars ANSWER ============================================================================================================================================================================================= Absorption Costing Income Statement ============================================================================================================================================================================================= Sales 39,000 x 80 3120000 ============================================================================================================================================================================================= Cost of goods sold 39,000 x 50 1950000 ============================================================================================================================================================================================= Gross margin 1070000 ============================================================================================================================================================================================= Selling and adminstratin expenses 39,000 x 2+567,000 645000 ============================================================================================================================================================================================= Net opering income 425000 ANSWER =============================================================================================================================================================================================
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