Transcribed Image Text: ENOWV2 | Online teachin X eAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Requiem:. a Britten’s War Requi… eBook Show Me How Calculator Fresno Industries Inc. manufactures and sells high-quality camping tents. The company

Transcribed Image Text: ENOWV2 | Online teachin X
eAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
Requiem:.
a Britten’s War Requi…
eBook
Show Me How
Calculator
Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of
capacity (150,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 130,000 units
during the month but sold 150,000 units at $500 per unit. The February manufacturing.costs and selling and administrative expenses were as
follows:
Number of
Unit
Total
Units
Cost
Cost
Manufacturing costs in February 1 beginning inventory:
Variable
20,000
$275.00
$5,500,000
Fixed
20,000
26.00
520,000
Total
$301.00
$6,020,000
Manufacturing costs in February:
Variable
130,000
$275.00
$35,750,000
Fixed
130,000
30.00
3,900,000
Total
$305.00
$39,650,000
Selling and administrative expenses in February:
Variable
150,000
$20.00
$3,000,000
Fixed
150,000
1.30
195,000
Total
$21.30
$3,195,000
a. Prepare an income statement according to the absorption costing concept for the month ending February 28.
Fresno Industries Inc.
Ahcorntion Costinn Incomo Cktonont
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