Connect ?·> Secure | https://newconnect.mheducation.com/flow/connect.html Ch 06

Question

Connect ?·> Secure | https://newconnect.mheducation.com/flow/connect.html Ch 06 Ex 6-4 6 Saved Help Save& Exit Submit my work Exercise 6-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,025 kayaks and sold 775. at a price of $1,025 each. At this first year-end, the company reported the following income statement information using absorption costing points eBook Sales (775 $1,825) Cost of goods sold (775 x $475) Gross margin Selling and administrative expense:s Net income $794,375 368,125 426,258 248,808 $ 186,250 Hint Ask Print Additional Information a. Product cost per kayak totals $475, which consists of $375 in variable production cost and $100 in fixed production cost-the latter amount is based on $102,500 of fixed production costs allocated to the 1,025 kayaks producec b. The $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed Required 1. Prepare an income statement for the current year under variable costing. KENZI KAYAKING Graw Prev lofi Next 40 PM 0 Type here to search 4/27/2018

Explanation / Answer

Variable costing income statement :

Sales (775*1025) 794375 Variable cost of goods sold (775*375) -290625 Manufacturing margin 503750 Variable selling and administrative expense -95000 Contribution margin 408750 Fixed cost Fixed manufacturing overhead -102500 Fixed selling and administrative expense -145000 -247500 Net operating income 161250

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.