Stonehenge Inc., a manufacturer of landscaping blocks, began operations on April 1 of the current year. During this time, the company produced 750,000 units and sold 720,000 units at a sales price of $9 per unit. Cost information for this period is shown below.
(a.) Prepare Stonehenge's December 31^st income statement for the current year under absorption costing.
(b.) Prepare Stonehenge's December 31^st income statement for the current year under variable costing.

Question

Stonehenge Inc., a manufacturer of landscaping blocks, began operations on April 1 of the current year. During this time, the company produced 750,000 units and sold 720,000 units at a sales price of $9 per unit. Cost information for this period is shown below.

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

Quizplus · Accepted Answer

The Answer of Stonehenge Inc., a manufacturer of landscaping blocks, began operations on April 1 of the current year. During this time, the company produced 750,000 units and sold 720,000 units at a sales price of $9 per unit. Cost information for this period is shown below. (a.) Prepare Stonehenge's December 31^st income statement for the current year under absorption costing. (b.) Prepare Stonehenge's December 31^st income statement for the current year under variable costing.