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The following absorption income statement and additional data are available from the accounting records of Bernon co. for the mont ended May 31, XXXX. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were r beginning inventories. Bernon Co. Absorption Costing Income Statement For the Month ended May 31, XXXX Sales (17,000 @ $60) 1,020,000 Cost of goods sold 612,000 Gross Profit 408,000 Selling and administrative expanses 66,000 Income from operations 342,000 Additional information: Cost total cost 442,000 170,000 number of units 612,000 manufacturing costs: Variable Fixed Total Selling and Administrative expenses : Variable ($2 per unit sold) Fixed 32,000 total 66,000 Prepare a new income statement for the year using variable costing. Comment on the differences, if any, between the absorption costing and variable costing income statements. unit cost 17,000 17,000 10 36 $26 34,000

The following absorption income statement and additional data are available from the accounting records of Bernon co. for the mont ended May 31, XXXX. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were r beginning inventories. Bernon Co. Absorption Costing Income Statement For the Month ended May 31, XXXX Sales (17,000 @ $60) 1,020,000 Cost of goods sold 612,000 Gross Profit 408,000 Selling and administrative expanses 66,000 Income from operations 342,000 Additional information: Cost total cost 442,000 170,000 number of units 612,000 manufacturing costs: Variable Fixed Total Selling and Administrative expenses : Variable ($2 per unit sold) Fixed 32,000 total 66,000 Prepare a new income statement for the year using variable costing. Comment on the differences, if any, between the absorption costing and variable costing income statements. unit cost 17,000 17,000 10 36 $26 34,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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The following absorption income statement and additional data are available from the accounting records of Bernon co. for the month ended May 31, XXXX. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories. Bernon Co. Absorption Costing Income Statement For the Month ended May 31, XXXX Sales (17,000 @ $60) 1,020,000 Cost of goods sold Gross Profit 612,000 408,000 Selling and administrative expanses 66,000 Income from operations 342,000 Additional information: Cost total cost manufacturing costs: Variable Fixed Total Selling and Administrative expenses : Variable ($2 per unit sold) Fixed total 442,000 170,000 612,000 number of units 17,000 17,000 unit cost $26 10 36 34,000 32,000 66.000 Prepare a new income statement for the year using variable costing. Comment on the differences, if any, between the absorption costing and variable costing income statements.
Transcribed Image Text:The following absorption income statement and additional data are available from the accounting records of Bernon co. for the month ended May 31, XXXX. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories. Bernon Co. Absorption Costing Income Statement For the Month ended May 31, XXXX Sales (17,000 @ $60) 1,020,000 Cost of goods sold Gross Profit 612,000 408,000 Selling and administrative expanses 66,000 Income from operations 342,000 Additional information: Cost total cost manufacturing costs: Variable Fixed Total Selling and Administrative expenses : Variable ($2 per unit sold) Fixed total 442,000 170,000 612,000 number of units 17,000 17,000 unit cost $26 10 36 34,000 32,000 66.000 Prepare a new income statement for the year using variable costing. Comment on the differences, if any, between the absorption costing and variable costing income statements.
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