Please do not give solution in image format thanku Happy Trails has the following information for its manufacturing:Direct MaterialsDirect LaborVariable Manufacturing OverheadFixed Manufacturing Overhead$24Units Produced27,000Units Sold19,000Its income statement under absorption costing is:SalesBeginning InventoryCost of Goods ManufacturedCost of Goods Available for Sale-Ending InventoryCost of Goods Sold$16$16$2Gross Profit-Sales and Admin, Expenses:VariableFixedTotal Sales and Admin. ExpensesNet Operating Income$1,901,000$01,566,000$1,566,000464,000$1,102,000$799,000$152,000200,000$352,000$447,000Prepare an income statement with variable costing and a reconciliation statement between both methods. If an amount box does not require an entry, leave it blank. Sales- VBeginning InventoryCost of Goods ManufacturedCost of Goods Available for SaleEnding Inventory - VCost of Goods Sold - Vhappy momVariable Costing Income StatementFeedback- VGross ProfitVanable Sales and Administrative ExpensesContribution MarginFixed Sales and Administrative ExpensesFixed Manufacturing Overhead -VTotal Sales and Administrative ExpensesNet Operating Income - VReconciliation:Net Operating Income: Variable- VFixed Manufacturing Overhead Deferred in InventoryNet Operating Inceme: Absorption100 000

Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Sales Variable Costing Income Statement Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inventory - V Cost of Goods Sold Gross Profit ✓ - V Variable Sales and Administrative Expenses Contribution Margin Fixed Sales and Administrative Expenses Fixed Manufacturing Overhead -V Total Sales and Administrative Expenses Net Operating Income -V Reconciliation: Net Operating Income: Variable - V

Sales Variable Costing Income Statement Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inventory - V Cost of Goods Sold Gross Profit ✓ - V Variable Sales and Administrative Expenses Contribution Margin Fixed Sales and Administrative Expenses Fixed Manufacturing Overhead -V Total Sales and Administrative Expenses Net Operating Income -V Reconciliation: Net Operating Income: Variable - V

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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