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192. O’Keefe Company, which has only one product, has provided the following data
concerning its most recent month of operations:
Required:
a. Prepare a contribution format income statement for the month using variable costing.
b. Prepare an income statement for the month using absorption costing.
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193. Nesman Company, which has only one product, has provided the following data
concerning its most recent month of operations:
The company produces the same number of units every month, although the sales in units vary
from month to month. The company’s variable costs per unit and total fixed costs have been
constant from month to month.
Required:
a. Prepare a contribution format income statement for the month using variable costing.
b. Prepare an income statement for the month using absorption costing.
194. Carvey Corporation manufactures a variety of products. The following data pertain to the
company’s operations over the last two years:
Required:
a. Determine the absorption costing net operating income for last year. Show your work!
b. Determine the absorption costing net operating income for this year. Show your work!
195. Last year, Holroyd Corporation’s variable costing net operating income was $95,000. The
fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to
$29,000.
Required:
Determine the absorption costing net operating income last year. Show your work!
196. Last year, Teneyck Corporation’s variable costing net operating income was $63,500 and
ending inventory decreased by 200 units. Fixed manufacturing overhead cost per unit was $5.
Required:
Determine the absorption costing net operating income for last year. Show your work!
197. Salonia Corporation manufactures a variety of products. The following data pertain to the
company’s operations over the last two years:
Required:
a. Determine the absorption costing net operating income last year. Show your work!
b. Determine the absorption costing net operating income this year. Show your work!
198. Cassin Corporation manufactures a variety of products. Last year, the company’s variable
costing net operating income was $86,300 and ending inventory decreased by 1,700 units. Fixed
manufacturing overhead cost per unit was $8.
Required:
Determine the absorption costing net operating income for last year. Show your work!
199. Gordy Corporation manufactures a variety of products. Last year, variable costing net
operating income was $81,000. The fixed manufacturing overhead costs released from inventory
under absorption costing amounted to $39,000.
Required:
Determine the absorption costing net operating income last year. Show your work!
200. Camren Corporation has two major business segments-Apparel and Accessories. Data
concerning those segments for December appear below:
Common fixed expenses totaled $357,000 and were allocated as follows: $161,000 to the Apparel
business segment and $196,000 to the Accessories business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit
percentages; show only dollar amounts.
201. The IT Corporation produces and markets two types of electronic calculators: Model 11
and Model 12. The following data were gathered on activities last month:
Required:
Prepare a segmented income statement in the contribution format for last month.
202. Data for May concerning Dorow Corporation’s two major business segments-Fibers and
Feedstocks-appear below:
Common fixed expenses totaled $345,000 and were allocated as follows: $186,000 to the Fibers
business segment and $159,000 to the Feedstocks business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit
percentages; show only dollar amounts.
203. Mossor Corporation has two major business segments-Retail and Wholesale. In
December, the Retail business segment had sales revenues of $510,000, variable expenses of
$296,000, and traceable fixed expenses of $61,000. During the same month, the Wholesale
business segment had sales revenues of $510,000, variable expenses of $240,000, and traceable
fixed expenses of $82,000. Common fixed expenses totaled $191,000 and were allocated as
follows: $113,000 to the Retail business segment and $78,000 to the Wholesale business
segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit
percentages; show only dollar amounts.