Giovanni Company produces a product that requires four standard gallons per unit. The standard price is $34.00 per gallon. Assume the company produced 3,500 units of product. The 3,500 units required 14,400 gallons, which were purchased at $33.25 per gallon. The product requires five standard hours per unit at a standard hourly rate of $30 per hour. The 3,500 units required 17,700 hours at an hourly rate of $30.50 per hour. The standard variable overhead cost per unit is $3.50 per hour. The actual variable factory overhead was $63,400. The standard fixed overhead cost per unit is $1.80 per hour at 17,000 hours, which is 100% of normal capacity.
Prepare a 2014 income statement through gross profit for Giovanni Company. Assume Giovanni sold 3,500 units at $400 per unit. Enter all amounts as positive numbers. If an amount does not require an entry or is zero, enter "0".
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Income Statement Through Gross Profit
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For the Year Ended December 31, 2014
Sales ___________________
Cost of goods sold at Standard ___________________
Gross profit-at standard __________________
Less variances from standard cost:
Direct materials price __________ __________
Direct materials quantity __________ __________
Direct labor rate __________ ___________
Direct labor time __________ ___________
Factory overhead controllable __________ ___________
Factory overhead volume __________ ___________ _______________
Gross profit _______________
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