Homework Help is Here – Start Your Trial Now!
Business
Accounting
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units x $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (20,000 × $25) Cost of goods sold Gross margin Selling and administrative expenses Net income Direct materials Direct labor Variable overhead Fixed overhead ($700,000/100,000 units) TREZ Company Variable Costing Income Statement $ Net income (loss) $ 4 11 $ 3 $ 7 $ per unit per unit per unit per unit Required: 1. Prepare an income statement for the company under variable costing. Additional Information Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit is computed as follows. 0 2,500,000 2,500,000 500,000 $ $ 3,600,000 2,000,000 1,600,000 610,000 990,000

Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units x $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (20,000 × $25) Cost of goods sold Gross margin Selling and administrative expenses Net income Direct materials Direct labor Variable overhead Fixed overhead ($700,000/100,000 units) TREZ Company Variable Costing Income Statement $ Net income (loss) $ 4 11 $ 3 $ 7 $ per unit per unit per unit per unit Required: 1. Prepare an income statement for the company under variable costing. Additional Information Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit is computed as follows. 0 2,500,000 2,500,000 500,000 $ $ 3,600,000 2,000,000 1,600,000 610,000 990,000

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
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 29P: Jellison Company had the following operating data for its first two years of operations: Jellison...
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units x $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (20,000 × $25) Cost of goods sold Gross margin Selling and administrative expenses Net income Direct materials Direct labor Variable overhead Fixed overhead ($700,000/100,000 units) TREZ Company Variable Costing Income Statement $ 4 $ 11 Net income (loss) $ 3 $ 7 $ per unit per unit per unit per unit Required: 1. Prepare an income statement for the company under variable costing. 0 2,500,000 2,500,000 500,000 Additional Information Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit is computed as follows. $ $ 3,600,000 2,000,000 1,600,000 610,000 990,000
Transcribed Image Text:Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units x $45 per unit) Cost of goods sold Beginning inventory Cost of goods manufactured (100,000 units x $25 per unit) Cost of good available for sale Ending inventory (20,000 × $25) Cost of goods sold Gross margin Selling and administrative expenses Net income Direct materials Direct labor Variable overhead Fixed overhead ($700,000/100,000 units) TREZ Company Variable Costing Income Statement $ 4 $ 11 Net income (loss) $ 3 $ 7 $ per unit per unit per unit per unit Required: 1. Prepare an income statement for the company under variable costing. 0 2,500,000 2,500,000 500,000 Additional Information Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $25 per unit is computed as follows. $ $ 3,600,000 2,000,000 1,600,000 610,000 990,000
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost estimation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS