Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. income statements under absorption costing and var

Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells...

80.2K

Verified Solution

Question

Accounting

image
image
image
Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (11,000 units) Production costs (14,000 units): $1,430,000 Direct materials $673,400 Direct labor 323,400 161,000 107,800 1,265,600 Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $196,200 75,900 272,100 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 1,430,000 Cost of goods sold 994,400 Gross profit $ 435,600 272,100 Selling and administrative expenses 163,500 Operating income b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Sales Variable cost of goods sold

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!
Become a Member

Other questions asked by students

Q

Note: Please rewrites these all paragraphs in other words because this all plagiarized please make in...

General Management
Q

Organ dysfunction most often occurs when an organ is injured or fails but so can...

Biology
Q

Use the Rational Zero Theorem to find a rational zero of the function f(x) =...

Geometry
Q

For a certain product the revenue is given by R 40x and the cost is...

Algebra
Q

Landmark Corp buys $410,000 of Schroeter Company's 8%, 5-year bonds payable,...

Accounting
Q

Following is a series of independent cases. Required: In each situation, indicate the cash distribution...

Accounting
Q

The cost-volume-profit graph: a. plots the total fixed cost line and the operating income line....

Accounting
Q

4 pts The next two questions are based on the following information: On October 1,...

Accounting
Q

Entries for Notes Receivable, Including Year-End Entries The following selected transactions were completed by Fasteners...

Accounting
Q

An investor wants to purchase shares in a firm that has no growth opportunities but...

Finance
Q

how do i solve Chapter 5 problem 54

Accounting
Q

Find accounting income. Bridgeport Property Management (Bridgeport) owns and manages apartment...

Accounting