Randy Company Has Obtained the Following Data for the First

question 18

Essay

Randy Company has obtained the following data for the first year of operations:
$\begin{array}{ll}\text { Sales }&\$2,868,750\\\text { Direct materials and labor }&\$1,125,000\\\text { Variable manufacturing overhead } & \$ 431,250 \\\text { Fixed manufacturing overhead } & \$ 656,250 \\\text { Variable selling expenses } & \$ 337,500 \\\text { Fixed selling expenses } & \$ 131,250 \\\text { Units produced } & 125,000 \\\text { Units sold } & 112,500 \\\text { Units expected to be produced } & 125,000\end{array}$
Required:
A) Using variable costing, prepare an income statement for the first year of operations. Assume budgeted fixed costs were equal to actual fixed costs.
B) Using absorption costing, prepare an income statement for the first year of operations. Assume budgeted fixed costs were equal to actual fixed costs.

• A) Using variable costing, prepare an income statement for the first year of operations. Assume budgeted fixed costs were equal to actual fixed costs.
• B) Using absorption costing, prepare an income statement for the first year of operations. Assume budgeted fixed costs were equal to actual fixed costs.

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Definitions:

Thurgood Marshall

The first African-American justice on the U.S. Supreme Court, serving from 1967 to 1991, known for his legal work in dismantling racial segregation.

Dixiecrats

A political party in the United States, officially known as the States' Rights Democratic Party, that split from the Democratic Party in 1948, advocating for racial segregation and states' rights.

States' Rights Democrats

A faction within the Democratic Party that emerged in the mid-20th century, advocating for states' rights to legislate and govern without federal intervention, particularly on issues of racial segregation.

J.Strom Thurmond

A long-serving U.S. senator known for his strong support of racial segregation and opposition to civil rights legislation.