32 Degrees, Inc., a manufacturer of frozen food, began operations on July 1 of the current year. During this time, the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit. Cost information for this period is shown in the following table:
a. Prepare 32 Degree's December 31^st income statement for the current year under absorption costing.
b. Prepare 32 Degree's December 31^st income statement for the current year under variable costing.

Question

32 Degrees, Inc., a manufacturer of frozen food, began operations on July 1 of the current year. During this time, the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit. Cost information for this period is shown in the following table:

a. Prepare 32 Degree's December 31^st income statement for the current year under absorption costing.
b. Prepare 32 Degree's December 31^st income statement for the current year under variable costing.

Quizplus · Accepted Answer

The Answer of 32 Degrees, Inc., a manufacturer of frozen food, began operations on July 1 of the current year. During this time, the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit. Cost information for this period is shown in the following table: a. Prepare 32 Degree's December 31^st income statement for the current year under absorption costing. b. Prepare 32 Degree's December 31^st income statement for the current year under variable costing.