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During the first month of operations ended July 31, YoSan Inc. manufactured 8,800 flat panel televisions,...

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Accounting

  1. During the first month of operations ended July 31, YoSan Inc.manufactured 8,800 flat panel televisions, of which 8,300 weresold. Operating data for the month are summarized as follows:

    Sales$1,494,000
    Manufacturing costs:
        Direct materials$748,000
        Direct labor220,000
        Variable manufacturing cost193,600
        Fixed manufacturing cost96,8001,258,400
    Selling and administrative expenses:
        Variable$116,200
        Fixed53,500169,700

    Required:

    1. Prepare an income statement based on theabsorption costing concept.

    YoSan Inc.
    Absorption Costing Income Statement
    For the Month Ended July 31
    $
    Cost of goods sold:
    $
    $
    $

    2. Prepare an income statement based on thevariable costing concept.

    YoSan Inc.
    Variable Costing Income Statement
    For the Month Ended July 31
    $
    Variable cost of goods sold:
    $
    $
    $
    Fixed costs:
    $
    $

    3. Explain the reason for the difference in theamount of income from operations reported in (1) and (2).

    The income from operations reported under___ costing exceeds theincome from operations reported under ____ costing by thedifference between the two, due to____ manufacturing costs that aredeferred to a future month under ____ costing.

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Answer & Explanation Solved by verified expert
3.9 Ratings (732 Votes)
Absorption Costing Sales 149400000 Product Cost Direct materials 74800000 Direct labor 22000000 Variable manufacturing cost 19360000 Fixed manufacturing cost 9130000 Period Cost Variable Selling and Admin Exp 11620000 Fixed Selling and Admin Expenses 5350000 Net    See Answer
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