20-1B During the first month of operations ended September 30, 2012, Sungsam Inc. manufactured 3,200 flat panel televisions, of which 3,000 were sold. Operating data for the month are summarized as follows.   Sales………………………………………………………………………………………………..$4,275,000 Manufacturing costs: Direct Materials…………………………………………$1,680,000 Direct Labor………………………………………………….720,000 Variable manufacturing cost……………………… 272,000 Fixed manufacturing cost…………..

Document Preview:

20-1B During the first month of operations ended September 30, 2012, Sungsam Inc. manufactured 3,200 flat panel televisions, of which 3,000 were sold. Operating data for the month are summarized as follows.   Sales………………………………………………………………………………………………..$4,275,000 Manufacturing costs: Direct Materials…………………………………………$1,680,000 Direct Labor………………………………………………….720,000 Variable manufacturing cost……………………… 272,000 Fixed manufacturing cost………………………………. 505,600 $3,177,600 Selling and admin. expenses: Variable……………………………………………………..$ 408,000 Fixed…………………………………………………………… 195,000 603,000   Instructions 1)Prepare an income statement based on absorption costing concept 2)Prepare an income statement based on variable costing concept 3) Explain the reason for the difference in the amount of income from operations reported in (1) and (2) 20-3B 21-3B????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Attachments: