{"id":23827,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/absorption-costing-variable-costing-income-statements"},"modified":"2017-08-03T16:09:29","modified_gmt":"2017-08-03T16:09:29","slug":"absorption-costing-variable-costing-income-statements","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/absorption-costing-variable-costing-income-statements\/","title":{"rendered":"Absorption costing-variable costing income statements"},"content":{"rendered":"<div class=\"the_content_wrapper\">\n<p> Duif Company\u2019s absorption costing income statement for the last year of operations is presented below:<\/p>\n<p>Sales\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026$70,000<\/p>\n<p>Less cost of goods sold:<\/p>\n<p>Beginning inventory\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026. 0<br \/> Add cost of goods manufactured\u2026\u2026\u2026\u2026\u2026\u202648,000<br \/> Goods available for sale\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.48,000<br \/> Less ending inventory\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u20266,000<br \/> Cost of goods sold\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..42,000<br \/> Gross margin\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.28,000<br \/> Less selling &amp; admin. expenses\u2026\u2026\u2026\u2026\u2026\u2026..25,000<br \/> Net operating income\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..$ 3,000<\/p>\n<p>Data on units produced and sold for the year are given below:<\/p>\n<p>Units in beginning inventory\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..0<br \/> Units produced\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.8,000<br \/> Units sold\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u20267,000<\/p>\n<p>Fixed factory overhead totaled $16,000 for the year. This overhead was applied to products at a rate of $2 per unit. Variable selling and administrative expenses were $3 per unit sold.<\/p>\n<p>Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Duif Company\u2019s absorption costing income statement for the last year of operations is presented below: Sales\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026$70,000 Less cost of goods sold: Beginning inventory\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026. 0 Add cost of goods manufactured\u2026\u2026\u2026\u2026\u2026\u202648,000 Goods available for sale\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.48,000 Less ending inventory\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u20266,000 Cost of goods sold\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..42,000 <a href=\"https:\/\/www.benedictsol.com\/blogs\/absorption-costing-variable-costing-income-statements\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-23827","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/23827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=23827"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/23827\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=23827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=23827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=23827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}