The following information pertains to the first year of operation for Crystal Co
ID: 2394635 • Letter: T
Question
The following information pertains to the first year of operation for Crystal Cold Coolers Inc.. 2,900 2,500 $ 360 Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($188,500/2,900 units) Total variable selling expenses ($13 per unit sold) Total fixed general and administrative expenses 60 15 65 32,500 60,000 Required Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year. Do not leave any numeric cells blank, enter a zero wherever required.) CRYSTAL COLD COOLERS INC. Full Absorption Costing Income Statement CRYSTAL COLD COOLERS INC. Variable Costing Income Statement Less: Variable Cost of Goods Sold Less: Cost of Goods Sold Cost of Goods Available for Sale Cost of Goods Available for Sale Variable Cost of Goods Sold Cost of Goods Sold Gross Margin Less: Non-Manufacturing Expenses Contribution Margin Less: Fixed Costs Net Operating Income Net Operating IncomeExplanation / Answer
Crystal Cold Coolers Inc.
Full Absorption Costing
Income Statement
Crystal Cold Coolers Inc.
Variable Costing
Income Statement
Sales (2,500 x 360) (A) 900,000 Less: Cost of goods sold Direct material (2,900 x 55) 159,500 Direct labor (2,900 x 60) 174,000 Variable manufacturing overhead (2,900 x 15) 43,500 Fixed manufacturing overhead 188,500 Cost of goods produced 565,500 Less: Ending inventory of finished goods (565,500/2,900) x 400 -78,000 Cost of goods sold (B) 487,500 Gross margin (A - B) 412,500 Less: Non manufacturing expenses Variable selling expenses -32,500 Fixed general and administrative expenses -60,000 Net operating income 320,000Related Questions
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