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Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. The company produced 15,000 units that required 36,000 pounds, which were purchased at $4.00 per pound. The product also requires 4 standard hours per unit at a standard hourly rate of $20 per hour. The 15,000 units required 61,800 hours at an hourly rate of $19.85 per hour. In addition, the standard variable overhead cost per unit is $0.90 per hour and the actual variable factory overhead was $52,770. Finally, the standard fixed overhead cost per unit is $1.15 per hour at 58,000 hours, which is 100% of normal capacity. Assume that Bellingham sold 15,000 units at $172 per unit.

Prepare a income statement through gross profit for Bellingham Company. Enter all amounts as positive numbers except favorable variances.

Prepare an income statement through gross profit for Bellingham Company for the month ended March 31. Assume that Bellingham sold 15,000 units at $172 per unit. Enter all amounts as positive numbers except favorable variances.

Bellingham Company

Income Statement Through Gross Profit

For the Month Ended March 31

1	Sales
2	Cost of goods soldat standard
3	Gross profitat standard
4		Unfavorable	Favorable
5	Less variance adjustment to gross profit at standard:
6	Direct materials price
7	Direct materials quantity
8	Direct labor rate
9	Direct labor time
10	Factory overhead controllable
11	Factory overhead volume
12	Net variance from standard costunfavorable
13	Gross profitactual

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