The Variable Costing Income Statement for Bouve Company Is Seen $\begin{array} { l }\text { Sales }(6,000 \text { untits } \times \$ 35)&\$210,000\\\end{array}$

question 60

Essay

The variable costing income statement for Bouve Company is seen below:
$\begin{array} { l }\text { Sales }(6,000 \text { untits } \times \$ 35)&\$210,000\\\end{array}$

Variable expenses:
$\begin{array} { l }\text { Beginning inventory ( } 680 \text { units } \times \$ 20 \text { ) }&\$ 13,600\\\end{array}$

Variable cost of goods manufactured
$\begin{array}{ll}(6,400 \text { units } \times \$ 20) & 128,000 \\\text { Available for sale } & 141,600 \\\text { Less: Ending inventory }(1,080 \text { units } \times \$ 20) & 21,600\\\text { Variable manufacturing cost of goods sold }&120,000\\\text { Variable selling and administrative expenses }&24,000\\\text { Contribution margin }&66,000\end{array}$
Fixed expenses:
$\begin{array} { l } \text {Fixed factory overhead }&20,000 \\ \text {Fixed selling and administrative expenses }&15,300 \\ \text { Operating income}&\$30,700 \\\end{array}$

Required:
Prepare an absorption-costing income statement for the same period of time.Assume that actual fixed costs were equal to budgeted fixed costs and the budgeted fixed overhead rate was constant over the period examined.Assume the production volume variance equals zero.

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Definitions:

Ego

In psychoanalytic theory, the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual, defining their character and psychological identity.

Freud

Sigmund Freud, an Austrian neurologist known for founding psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Impulsively

Acting or done without forethought, driven by sudden desires or inclinations.