Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90. Fixed overhead costs are $78,000, and fixed selling and administrative costs are $65,200. The company also reports the following per unit costs for the year. Prepare an income statement under absorption costing. Variable production costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25 Variable selling and administrative expenses . . . . . . . . . . . . 2

Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90. Fixed overhead costs are $78,000, and fixed selling and administrative costs are $65,200. The company also reports the following per unit costs for the year. Prepare an income statement under absorption costing. Variable production costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25 Variable selling and administrative expenses . . . . . . . . . . . . 2

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Description: Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90. Fixed overhead costs are $78,000, and fixed selling and administrative costs are $65,2

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90. Fixed overhead costs are $78,000, and fixed selling and administrative costs are $65,200. The company also reports the following per unit costs for the year. Prepare an income statement under variable costing. Variable production costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25 Variable selling and administrative expenses . . . . . . . . . . . . 2
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,150 rackets and sold 4,980. Each racket was sold at a price of $90. Fixed overhead costs are $79,950 per year, and fixed selling and administrative costs are $65,600 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Prepare an income statement under variable costing. Contribution margin Less: Fixed expenses Income X Answer is not complete. Sales Less: Variable expenses Variable selling and administrative expenses Variable cost of goods sold ACES INCORPORATED Income Statement (Variable Costing) Fixed overhead Fixed selling and administrative expenses $ 448,200 2852 $12
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