Wrap-It Company,a manufacturer of wrapping paper,began operations on June 1 of the current year.During this time,the company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit.Cost information for this period is shown in the following table:
a.Prepare Wrap-It's December 31st income statement for the current year under absorption costing.
b.Prepare Wrap-It's December 31st income statement for the current year under variable costing.

Question

Wrap-It Company,a manufacturer of wrapping paper,began operations on June 1 of the current year.During this time,the company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit.Cost information for this period is shown in the following table:
 a.Prepare Wrap-It's December 31st income statement for the current year under absorption costing.
b.Prepare Wrap-It's December 31st income statement for the current year under variable costing.

Quizplus · Accepted Answer

The Answer of Wrap-It Company,a manufacturer of wrapping paper,began operations on June 1 of the current year.During this time,the company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit.Cost information for this period is shown in the following table:
 a.Prepare Wrap-It's December 31st income statement for the current year under absorption costing.
b.Prepare Wrap-It's December 31st income statement for the current year under variable costing.

Wrap-It Company,a Manufacturer of Wrapping Paper,began Operations on June 1