Absorption and Variable Costing Income StatementsDuring the first month of operations ended July 31, YoSan Inc. manufactured 12,000 flat panel televisions, of which 11,300 were sold. Operating data for the monthare summarized as follows:SalesManufacturing costs:Direct materialsDirect laborVariable manufacturing costFixed manufacturing costSelling and administrative expenses:VariableFixed$1,020,000300,000264,000132,000$158,20072,800$2,034,0001,716,000231,000 Required:1. Prepare an income statement based on the absorption costing concept.YoSan Inc.Absorption Costing Income StatementFor the Month Ended July 31Line Item DescriptionCost of goods sold:2. Prepare an income statement based on the variable costing concept.YoSan Inc.Variable Costing Income StatementFor the Month Ended July 31Line Item DescriptionVariable cost of goods sold:Amount AmountFixed costs:Amount Amount33. Explain the reason for the difference in the amount of operating income reported in (1) and (2).The operating income reported undercosting exceeds the operating income reported undermanufacturing costs that are deferred to a future month undercosting.costing, due to

The income statement can be prepared using various methods as absorption and variable costing. The…

Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 12,000 flat panel televisions, of which 11,300 were sold. Operating data for the month are summarized as follows: Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $1,020,000 300,000 264,000 132,000 $158,200 72.800 $2,034,000 1,716,000 231.000

Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 12,000 flat panel televisions, of which 11,300 were sold. Operating data for the month are summarized as follows: Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $1,020,000 300,000 264,000 132,000 $158,200 72.800 $2,034,000 1,716,000 231.000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 1PB: Absorption and variable costing income statements During the first month of operations ended July...

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