AJ Manufacturing Company incurred $58,000 of fixed product cost and $46,400 of variable product cost during its first yearof operation. Also during its first year, AJ incurred $18,400 of fixed and $14,600 of variable selling and administrative costs.The company sold all of the units it produced for $192,000.Requireda. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).b. Prepare an income statement using the contribution margin approach.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare an income statement using the contribution margin approach.AJ MANUFACTURING COMPANYIncome Statement< Required ARequired B > AJ Manufacturing Company incurred $58,000 of fixed product cost and $46,400 of variable product cost during its first yearof operation. Also during its first year, AJ incurred $18,400 of fixed and $14,600 of variable selling and administrative costs.The company sold all of the units it produced for $192,000.Requireda. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).b. Prepare an income statement using the contribution margin approach.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare an income statement using the format required by generally accepted accounting Principles (GAAP).AJ MANUFACTURING COMPANYIncome StatementRequired ARequired B>

Three components of the income statement are as follows: Gross profit component ( it gives details…

AJ Manufacturing Company incurred $58,000 of fixed product cost and $46,400 of variable product cost during its first year of operation. Also during its first year, AJ incurred $18,400 of fixed and $14,600 of variable selling and administrative costs. The company sold all of the units it produced for $192,000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). p. Prepare an income statement using the contribution margin approach.

AJ Manufacturing Company incurred $58,000 of fixed product cost and $46,400 of variable product cost during its first year of operation. Also during its first year, AJ incurred $18,400 of fixed and $14,600 of variable selling and administrative costs. The company sold all of the units it produced for $192,000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). p. Prepare an income statement using the contribution margin approach.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 1CE

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