Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. trez company began operations this year. during th

Trez Company began operations this year. During this year, the company produced 100,000 units and...

80.2K

Verified Solution

Question

Accounting

Trez Company began operations this year. During this year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows.

Income Statement (Absorption Costing)
Sales (80,000 units $45 per unit) $ 3,600,000
Cost of goods sold 2,000,000
Gross profit 1,600,000
Selling and administrative expenses 490,000
Income $ 1,110,000

Additional Information

  1. Selling and administrative expenses consist of $350,000 in annual fixed expenses and $1.75 per unit in variable selling and administrative expenses.
  2. The company's product cost of $25 per unit consists of the following.
Direct materials $ 4 per unit
Direct labor $ 9 per unit
Variable overhead $ 4 per unit
Fixed overhead ($800,000 / 100,000 units) $ 8 per unit

Required: Prepare an income statement for the company under variable costing.

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

please don't answer unless you can do all parts, circle answer and show work please part 1) A...

Advance Math
Q

With the basic income-leisure choice model, show possible labor supply curve for the followings. a. The poor...

Economics
Q

Answer the following question in a composition of 10 to 20 sentences How can a marketer make...

General Management
Q

Find the value of the given trigonometric function directly from a calculator.sin 308.65sin 308.65 =(Round...

Basic Math
Q

Image Hospital emergency rooms ERS have a bad reputation for long wait times hospitals have...

Statistics
Q

Find the average cost function if cost and revenue are given by C(x) = 112+...

Calculus
Q

Assume the car can be purchased for 0% down for 60 months (in lieu of...

Algebra
Q

Companies can use Virtual Private Networks (VPN) For remote access to their in-house computing...

Accounting
Q

ollowing is the adjusted trial balance, with accounts in alphabetical order, for TRN Magazine as...

Accounting
Q

Assume that Shavonne's marginal tax rate is 37 percent and her tax rate on dividends...

Accounting
Q

Local government uses a fund structure of accounting. Describe the structure and why it is...

Accounting
Q

One of Sheridan Company's activity cost pools is inspecting, with estimated overhead of $950,000. Sheridan...

Accounting