EXERCISE 7 - EXERCISE 7-2(a ASIAN WINDOWS Income Statement...

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EXERCISE 7-2 (a) ASIAN WINDOWS Income Statement For the Year Ended December 31, 2005 Absorption Costing _______________________________________________________ ________ Sales (8,500 shades X $90) $765,000 Cost of goods sold (8,500 shades X $50*) 425,000 Gross profit 340,000 Variable selling and administrative expenses (8,500 shades X $9) $ 76,500 Fixed selling and administrative expenses 250,000 326,500 Net income $ 13,500 *Variable manufacturing costs $40 per shade Fixed manufacturing overhead costs ($100,000 ÷ 10,000) 10 per shade Total cost $50 per shade
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EXERCISE 7-2 (Continued) (b) Variable costing: ASIAN WINDOWS Income Statement For the Year Ended December 31, 2005 Variable Costing _______________________________________________________ ________ Sales (8,500 shades X $90) $765,000 Variable cost of goods sold (8,500 shades X $40) $340,000 Variable selling and administrative expenses (8,500 shades X $9) 76,500 416,500 Contribution margin 348,500 Fixed manufacturing overhead costs 100,000
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This note was uploaded on 05/16/2011 for the course AC 303 taught by Professor Richardkido during the Spring '11 term at Chaminade University.

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EXERCISE 7 - EXERCISE 7-2(a ASIAN WINDOWS Income Statement...

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