During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 44,000 mini...
50.1K
Verified Solution
Link Copied!
Question
Accounting
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 44,000 mini refrigerators, of which 39,000 were sold. Operating data for the month are summarized as follows:
1
Sales
$7,020,000.00
2
Manufacturing costs:
3
Direct materials
$3,080,000.00
4
Direct labor
1,056,000.00
5
Variable manufacturing cost
880,000.00
6
Fixed manufacturing cost
616,000.00
5,632,000.00
7
Selling and administrative expenses:
8
Variable
$663,000.00
9
Fixed
273,000.00
936,000.00
Required:
1.
Prepare an income statement based on the absorption costing concept.*
2.
Prepare an income statement based on the variable costing concept.*
3.
Explain the reason for the difference in the amount of income from operations reported in (1) and (2).
* Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if required. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
