Problem 19-2a variable costing income statement and conversion to absorption costing income lo p2, p3

trez company began operations this year. during this first year, the company produced 100,000 units and sold 80,000 units. the absorption costing income statement for this year follows.

sales (80,000 units × $40 per unit) $ 3,200,000
cost of goods sold
beginning inventory $ 0
cost of goods manufactured (100,000 units × $20 per unit) 2,000,000
cost of good available for sale 2,000,000
ending inventory (20,000 × $20) 400,000
cost of goods sold 1,600,000
gross margin 1,600,000
selling and administrative expenses 590,000
net income $ 1,010,000

additional information

selling and administrative expenses consist of $450,000 in annual fixed expenses and $1.75 per unit in variable selling and administrative expenses.

the company's product cost of $20 per unit is computed as follows.

direct materials $ 4 per unit
direct labor $ 5 per unit
variable overhead $ 3 per unit
fixed overhead ($800,000 / 100,000 units) $ 8 per unit
prepare an income statement for the company under variable costing.

Accounting! will give five star the bixby co. had the following transactions involving the purchase of merchandise. prepare the necessary general journal entries. any applicable freight costs are prepaid by the seller. the perpetual inventory method is in use. june 16 purchased merchandise having a price of 6,000 from the shelby manufacturing co. on account with credit terms 2/10, n/30. transportation terms fob destination. june 16 purchased merchandise having a price of 9,000 from the ajax supply house on account with credit terms 2/10, n/30. transportation terms fob shipping point. the freight costs were 175. june 17 received the goods from shelby june 17 received the goods from ajax june 20 returned for credit merchandise with an invoice price of 800 to ajax june 25 paid shelby the amount owed june 28 paid ajax the amount owed june 30 returned for cash, merchandise with an invoice price of 400 to shelby questions: prepare the necessary general journal entry for june 16, purchased merchandise having a price of 6000 from shelby manufacturing co prepare the necessary general journal entry for june 17, received goods from shelby merchandise inventory 6000 prepare the necessary general journal entry for june 25 prepare the necessary general journal entry for june 28