Question - During the first month of operations ended May 31, 2010, Dorm Room Appliance Company manufactured 10,300 microwaves, of which 9,700 were sold. Operating data for the month are summarized as follows:
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Sales
|
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$1,455,000
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|
Manufacturing costs:
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|
|
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Direct materials
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$721,000
|
|
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Direct labor
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216,300
|
|
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Variable manufacturing cost
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185,400
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|
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Fixed manufacturing cost
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92,700
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1,215,400
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Selling and administrative expenses:
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|
|
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Variable
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$116,400
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|
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Fixed
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53,350
|
169,750
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Prepare an income statement based on the absorption costing concept. Enter all amounts as positive numbers.
Prepare an income statement based on the variable costing concept. Enter all amounts as positive numbers.