Stonehenge Inc. a manufacturer of landscaping blocks, began operations on April 1 of the current year. During this time, the company produced 750,000 units and sold 720,000 units at a sales price of $9 per unit. Cost information for this period is shown below.

Produciton costs
Direct Materials $1.80 per unit
Direct Labor $.30 per unit
Variable overhead $495,000 in total
Fixed Overhead $450,000 in total
Non-Production costs
Variable selling and administrative $18,000 in total
Fixed selling and administrative $53,000 in total


(a.) Prepare Stonehenge's December 31st income statement for the current year under absorption costing.
(b.) Prepare Stonehenge's December 31st income statement for the current year under variable costing.

Under absorption its 26,00,200...
Further I hvnt done yet... plz telll me the nxt all levels through my e-mail... [email protected]...
I'm a fresh student so I hvnt done tat much... so please do me this favour

lifestress2000, our guidelines are not to just give people answer's away. The work is theirs (and yours) to do, so you need to show your attempts at having done the problem and not be giving nor asking people just for answers, but rather guidance.

The thread is also a year and a half old. I don't think the poster cares anymore.

(Also not a good idea to just plaster your email up on a public page like that.)

Here I found the answer which match your question u can take idea from it,
Delta Corporation
Income Statement (Under Absorption Costing System)
For the Quarter Ending ------------
-
(Rupees)
Sales (20,000 * 30) 600,000
Less: Cost of Goods Sold
Opening Stock 0
Add: Production Cost (15.50 * 24,000) 372,000
Less: Closing Stock (15.50 * 4,000) (62,000) 310,000
Gross Profit 290,000
Less: Operating Expenses
Selling & Administrative Expenses (Fixed) 60,000
Net Profit 230,000

Working:
Production Cost (Total) = 80,000+100,000+120,000+72,000 = 372,000
Per Unit Production Cost = 372,000/24,000 = 15.50


Part-2
Delta Corporation
Income Statement (Under Direct Costing System)
For the Quarter Ending -------------

(Rupees)
Sales (20,000 * 30) 600,000
Less: Variable Cost of Goods Sold
Opening Stock 0
Add: Variable Production Cost (12.50 * 24,000) 300,000
Less: Closing Stock (12.50 * 4,000) (50,000) 250,000
Gross Profit 350,000
Less: Fixed Expenses
Factory Over Heads (Fixed) 72,000
Selling & Administrative (Fixed) 60,000 132,000
Net Profit 218,000

Working:
Total Variable Cost = 80,000+100,000+120,000 = 300,000
Per Unit Cost (Variable) = 300,000/24,000 = 12.50

hi guys..


I have come to a solution and I'm sure of it


net income for absorption = 3989800
net income for variable = 3971800

If you want to make sure of my solution you can multiply the number 0.6 "that we get from divided Fixed Overhead over total unit produce" on the difference between units produced 750,000 and sold 720,000 units

So 0.6*(750000-720000) = 18000

3989800 - 3971800 = 18000


^^

under variable costing the net income is 5039200