please enter a title 459588

The following information relates to Jorgensen Manufacturing Products for calendar year 2011, the company’s first year of operation:

Units produced 8,050

Units sold 7,300

Selling price per unit $4,800

Direct material per unit $2,030

Direct labor per unit $1,250

Variable manufacturing overhead per unit $990

Variable selling cost per unit $225

Annual fixed manufacturing overhead $829,150

Annual fixed selling and administrative expense $401,600

Prepare an income statement using full costing. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 2. Enter all amounts as positive amounts and subtract where necessary.)

Jorgensen Manufacturing

Income Statement

For the Year End December 31, 2011

$

Less

Gross margin

Less:

Net income $

Prepare an income statement using variable costing. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 2. Enter all amounts as positive amounts and subtract where necessary.)

Jorgensen Manufacturing

Income Statement

For the Year End December 31, 2011

$

Less:

Contribution margin

Less:

Net income $

Calculate the amount of fixed manufacturing overhead that will be included in ending inventory under full costing.

$

What is the difference between income computed under variable costing and income computed under full costing?

$

Suppose that the company sold 8,050 units during the year. What would the variable costing net income have been?

$

What would the full costing net income have been?

$