The following data are available for Scream Company for the year ended December 31,2015:
Required:
A)Using the variable-costing approach,prepare an income statement for the year ended December 31,2015.Assume actual fixed costs were equal to budgeted fixed costs.
B)Using the absorption-costing approach,prepare an income statement for the year ended December 31,2015.Assume actual fixed costs were equal to budgeted fixed costs.

Question

The following data are available for Scream Company for the year ended December 31,2015:
  Required: 
A)Using the variable-costing approach,prepare an income statement for the year ended December 31,2015.Assume actual fixed costs were equal to budgeted fixed costs. 
B)Using the absorption-costing approach,prepare an income statement for the year ended December 31,2015.Assume actual fixed costs were equal to budgeted fixed costs.

Quizplus · Accepted Answer

The Answer of The following data are available for Scream Company for the year ended December 31,2015:
  Required: 
A)Using the variable-costing approach,prepare an income statement for the year ended December 31,2015.Assume actual fixed costs were equal to budgeted fixed costs. 
B)Using the absorption-costing approach,prepare an income statement for the year ended December 31,2015.Assume actual fixed costs were equal to budgeted fixed costs.

The Following Data Are Available for Scream Company for the Year