20-1B
During the first month of operations ended September 30, 2012, Sungsam Inc. manufactured 3,200 flat panel televisions, of which 3,000 were sold. Operating data for the month are summarized as follows.
Sales………………………………………………………………………………………………..$4,275,000
Manufacturing costs:
Direct Materials…………………………………………$1,680,000
Direct Labor………………………………………………….720,000
Variable manufacturing cost……………………… 272,000
Fixed manufacturing cost………………………………. 505,600 $3,177,600
Selling and admin. expenses:
Variable……………………………………………………..$ 408,000
Fixed…………………………………………………………… 195,000 603,000
Instructions
1)Prepare an income statement based on absorption costing concept
2)Prepare an income statement based on variable costing concept
3) Explain the reason for the difference in the amount of income from operations reported in (1) and (2)
20-3B
21-3B
