Megredy Company prepared the following absorption costing income statement for the year ended May 31, 2019. Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold.There was no beginning inventory, and 17,500 units were produced.Variable manufacturing costs were $11 per unit.Actual fixed costs were equal to budgeted fixed costs.Required:
Prepare a variable-costing income statement for the same period.

Question

Megredy Company prepared the following absorption costing income statement for the year ended May 31, 2019.  Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold.There was no beginning inventory, and 17,500 units were produced.Variable manufacturing costs were $11 per unit.Actual fixed costs were equal to budgeted fixed costs.Required:
Prepare a variable-costing income statement for the same period.

Quizplus · Accepted Answer

The Answer of Megredy Company prepared the following absorption costing income statement for the year ended May 31, 2019.  Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold.There was no beginning inventory, and 17,500 units were produced.Variable manufacturing costs were $11 per unit.Actual fixed costs were equal to budgeted fixed costs.Required:
Prepare a variable-costing income statement for the same period.

Megredy Company Prepared the Following Absorption Costing Income Statement for the Year