Leoparod Company Developed the Following Unit Information for January 2014

question 194

Essay

Leoparod Company developed the following unit information for January 2014 its first month of operations: $\begin{array}{lcc}&\text { Per Unit}&\text { Total Cost }\\ \text { Sales price } &\$20\\ \text { Variable costs } &\\ \text { Direct materials} &5\\ \text { Direct labor } &3\\ \text { Variable manufacturing overhead } &4\\ \text { Selling and administrative expenses } &2\\ \text { Fixed selling and administrative expenses } &&\$31,000\\ \text { Fixed manufacturing overhead } &&46,000\\\end{array}$
During January 16000 units were produced and 12000 units were sold.
Instructions
(a) Prepare an income statement under the variable costing approach using the CVP format.
(b) What would be the net income (loss) if the absorption cost approach had been used? Explain any income difference between absorption and variable costing.

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Definitions:

Unusual Food Products

Edible items that are distinct in origin, taste, or composition, often appealing to niche markets seeking novel or exotic culinary experiences.

National Brands

Products that are manufactured and marketed by a company under its own brand name across a country.

Society's Well-being

The overall health, happiness, and prosperity of a community or society, reflecting quality of life and economic success.