Question

Translate Income statements under absorption costing and variable costing Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (166,000 units) during the first month, creating an ending inventory of 21,000 units. During February, the company produced 145,000 units during the month but sold 166,000 units at $540 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Total Unit Cost Units Cost Manufacturing costs in February 1 beginning inventory: Variable 21,000 $270.00 $5,670,000 Fixed 21,000 25.00 525,000 $295.00 $6,195,000 Total Manufacturing costs in February Variable Fixed 145,000 145,000 $270.00 $39,150,000 28.80 4,176,000 $298.80 $43,326,000 Total Selling and administrative expenses in February: Variable 166,000 19.20 $3,187,200 664,000 166,000 4.00 Fixed 23.20 $3,851,200 Total This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below She

Answer 1

come statement ine Fresno indrestries Absorption costing income statement the month en dud teh 26 Sales (166000 x5 40 pu) K9640,000 coof of good Soled, Begenning investy, vorable 5 674000 Firved 52500 a Loof of goods nana feeferred variable 139450,000 Fixed 417 6000 Zotal cost of Good Soled 4952 2000 Croes profit 40119000 helling ang administreren variable Fined 3157200 664000 3451200 operating . 10 cone 36267400