Complete this question by entering your answers in the tabs

Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing FINCH COMPANY Income Statement (Absorption Costing) Cost of goods Sold

Solution

FINCH COMPANY Income Statement (Absorption Costing) Sale revenue (1500*181)= 271500 Cost of goods sold Direct materials 1500*39.60)= 59400 Direct labor (1500*28)= 42000 Variable MOH (1500*10.30)= 15450 Fixed MOH (1500*19.20)= 28800 145650 Gross Margin 125850 Variable selling & administrative expense 9,900 Fixed selling & administrative expense 15,000 Net income 100,950 FINCH COMPANY Income Statement (Variable Costing) Sale revenue (1500*181)= 271500 Cost of goods sold Direct materials 1500*39.60)= 59400 Direct labor (1500*28)= 42000 Variable MOH (1500*10.30)= 15450 Variable selling &administrative expense 9,900 126,750 Contribution margin 144,750 Fixed expense: Fixed manufacturing overhead 38,400 Fixed selling & administrative expense 15,000 Net income ( 91,350 Absorption costing (100,950*3%) 3029 Variable costing      (91,350*3%) 2741 which apporach is recommended Variable