Answer Happy

Global Music produces student-grade violins for beginning violin students. The company produced 2,600 violins in its first month of operations. At month-end, 750 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $110.00 each. Total costs from the month are as follows: (Click on the icon to view the data.) The company prepares traditional (absorption costing) income statements for its bankers. Global would also like to prepare contribution margin income statements for management use. Read the requirements. Compute the following amounts that would be shown on these income statements: Requirement 1. Gross Profit Identify the formula, then compute the gross profit. Requirement 2. Contribution Margin Identify the formula, then compute the contribution margin. M Gross profit Contribution margin Requirement 3. Total expenses shown below the gross profit line.
21 PHERE 311.000 1722 MERE Requirement 3. Total expenses shown below the gross profit line + = Total expenses below the gross profit line Requirement 4. Total expenses shown below the contribution margin line + = Total expenses below the contribution margin line. Requirement 5. Dollar value of ending inventory under absorption costing The dollar value of ending inventory under absorption costing is Requirement 6. Dollar value of ending inventory under variable costing The dollar value of ending inventory under variable costing is
Global Music produces studen finished violins remained unsc (Click on the icon to view The company prepares traditio for management use. Read the requirements. Requirement 4. Total expense = Total expenses below the c Requirement 5. Dollar value The dollar value of ending inv Requirement 6. Dollar value Data table The Direct materials used $ Direct labor $ $ Variable manufacturing overhead Fixed manufacturing overhead $ Variable selling and administrative expenses $ Fixed selling and administrative expenses ....S Print Done The dollar value of ending inventory under variable costing is Requirement 7. Which income statement will have a higher operating income? By how much? Explain. income statement will have a higher operating income by 1 133,600 50,000 27,000 59,800 12,000 13,700 X first month of operations. At month-end, 750 al costs from the month are as follows: repare contribution margin income statements Under absorption costing Under variable costing, these costs are