Asked by Christopher Severson on Jun 16, 2024
Verified
Maloney Co.provided the following information for the year 20X1:
There are no beginning inventories.Prepare an income statement using the variable costing format.
Variable Costing
An accounting method that considers only variable costs as product costs and treats fixed costs as period costs that are expensed in the period incurred.
Income Statement
An income statement is a financial document that summarizes an organization's revenue, expenses, and profit or loss over a specific period.
- Examine the effect of cost allocation techniques on profit and loss statements across various costing approaches.
Verified Answer
AB
Andrea BlackJun 18, 2024
Final Answer : 
Variable costs = 4,400 units × ($85 + $55 + $40)= $792,000
Fixed costs = $130,000 + $165,000 = $295,000
Variable costs = 4,400 units × ($85 + $55 + $40)= $792,000Fixed costs = $130,000 + $165,000 = $295,000
Learning Objectives
- Examine the effect of cost allocation techniques on profit and loss statements across various costing approaches.
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