70.2K

Verified Solution

Link Copied!

Variable costing income statement: please just correct the 4 incorrect spaces

8 Calculator eBook Absorption Costing Income Statement The demand for aloe vera hand lotion, one of numerous products manufactured by Smooth Skin Care Products Inc., has dropped sharply because of recent competion from a similiar product The company's chemists are currenty completing tests of various new formulas, and iR is anticlpated that the manufacture of a superior product can be started on December 1, one month in the futue No changes wil be needed in the present production facilities to manufacture the new product because only the maxture of the various materials will be changed The controliler has beon asked by the president of the company for advice on whether to continue production during November or to suspend the manufacture of aloe vera hand lotion unti Docember 1. The controller has assemblod the tollowing pertinent data: Smooth Skin Care Products inc Income Statement-Aloe Vera Hand Lotion For the Month Ended October 31, 2016 Sales (400,000 units) Cost of goods sold Gross profit 32,000000.00 8,330,000.00 $3,670,000.00 270,000.00 $(600,000.00) 4 Selling and administrative expenses Operating loss The production costs and selling and administrative expenses, based on production of 400,000 units in October, are as folows Check My Work Previous Next eBook and Amount D Absorption Costing Income Statement The production costs and selling and administrative axpenses, bsed on production of 400,000 units in $15 per unt 17 per unit 35 per unit 10 per unit $1,530,000 for October 270,000 for October Direct materials Direct labor Variable manufacturing cost Variable seling and administrative expenses Fixed manutacturing cost Fixed selling and administrative expenses anticipated in the fixed costs or variable costs per unit. No extra costs wil s expected Saled for November are expected to dop about 20% below those of the preooing mont. No signiteant changes are The inventory of aloe vera hand lotion at the beginning and end of November i be incurmed in discontinuing operations in the portion of the plant associated with aloe vera hand lodon 10 be Inconsequential Required: .Prepare an estimated income statement in absorption cassing torm for November tor aloe v vera hand ionion, assuming that production conminues during the month Round amounts to two decimals 2. Prepare an estimated income s statement in variable costing torm for November for albe vera hand lotion, assuming thar production conainues during the month. Round amounts to two decimals. 3 what would be t 4, What advice should the controller give to management? the estimated loss in income from operation s if me aloe vera hand lotion production wore temporarily suspended for November? of Labels and Amount Descriptions for the exact wording of sne answer choices for text entries. Be sure to compiete the sreoured, at a ner oss is named, ener hat amount as a nerne numbe, usng appear Previous Next Check My Work Submit Assignment for Grading Instructions Labels and Amount Descriptions Labels Fixed costs For the Month Ending November 30, 2016 November 30, 2016 Selling and administrative expenses Variable cost of goods sold Amount Descriptions Contribution margin Contribution margin ratio Cost of goods sold Direct labor Direct materials Fixed manufacturing costs Fixed selling and administrative expenses Gross profit Operating income Operating loss Manufacturing margin Plannad contribution marnin Sa to mbe er ar of net Check My Work Labels and Amount Descriptions Variable cost of goods sold ns Contribution margin Contribution margin ratio Cost of goods sold Direct labor Direct materials Sa onth. No beFixed manufacturing costs to vera ha Fxed selling and administrative expenses Gross profit Operating income Operating loss Manufacturing margin Planned contribution margin Sales Sales mix Variable manufacturing cost Variable selling and administrative expenses mber for a er for aloe hand lotic of the an net loss is Check My Work Absorption Costing Income Statement Variable Costing Income Statement Score: 91/108 Smooth Skin Care Products Inc. Estimated Income Statement-Variable Costing-Aloe Vera Hand Lotion For the Month Ending November 30, 2016 $25,600,000.00 1 Sales 2Variable cost of goods sold: 3 Direct materials 4 Direct labor s Variable manufacturing cost 6 Manufacturing margin 7 Selling and administrative expenses $4,800000.00 5,440,000.00 11,200,000.00 21,440,000.00 $4,160,000.00 Contribution margin Fixed costs $960,000.00 Fixed selling and administrative expenses Fixed manufacturing cost 10 $270,000.00 ,530,000. 00 1,800,000.00 12 Selling and administrative expenses $1.00 Check My Work

Answer & Explanation Solved by verified expert

See Answer