Chapter 20 Appendix Solutions

Chapter 20 Appendix Solutions - Sheet1 Page 1 Chapter 20...

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Unformatted text preview: Sheet1 Page 1 Chapter 20 Appendix Solutions S 20A-37 Limonade Income Statement (Variable Costing) Month Ended April 30, 2009 Sales revenue (10,000 ? $25) $2 Variable costs (10,000 ? $10) Contribution margin Fixed costs Operating income S 20A-38 Req. 1 Limonade Income Statement (Absorption Costing) Month Ended April 30, 2009 Sales revenue (10,000 ? $25) $2 Cost of goods sold [10,000 ? ($8 var. + $5 fixed*)] Gross Profit Selling and administrative cost [(10,000 ? $2) + $20,000] Operating income Sheet1 Page 2 *$55,000 / 11,000 = $5 per unit Req. 2 The difference in incomes of $5,000 is the 1,000 units in ending inventory ? $5 fixed cost per unit that will be expensed when E 20A-39 Req. 1 Seams Company Conventional (Absorption Costing) Income Statement Year Ended December 31, 2008 Sales revenue (185,000 ? $35) $6,4 Less: Cost of goods sold (185,000 ? $25*) Gross profit Operating costs [(185,000 ? $5) + $300,000] Operating income $6 __________ *Variable manufacturing cost per unit of $15 plus $10 fixed manufacturing cost per unit ($2,000,000 fixed manufacturing overhead / 200,000 units produced)....
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Chapter 20 Appendix Solutions - Sheet1 Page 1 Chapter 20...

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