Question

Prepare a 2016 income statement through gross profit for Dvorak Company, using the variance data in Practice Exercises 23-1B, 23-2B, 23-3B, and 23-4B. Assume Dvorak sold 1,000 units at $90 per unit. DVORAK COMPANY Income Statement Through Gross Profit For the Year Ended December 31, 2016 Sales (1,000 units × $90) Cost of goods sold—at standard* Gross profit—at standard Favorable Unfavorable Less variances from standard cost: Direct materials price (PE23–1B) Direct materials quantity (PE23–1B) 

          Prepare a 2016 income statement through gross profit for Dvorak Company, using the variance data in Practice Exercises 23-1B, 23-2B, 23-3B, and 23-4B. Assume Dvorak sold 1,000 units at $90 per unit.

DVORAK COMPANY
Income Statement Through Gross Profit
For the Year Ended December 31, 2016

Sales (1,000 units × $90)
Cost of goods sold—at standard*
Gross profit—at standard
Favorable
Unfavorable
Less variances from standard cost:
Direct materials price (PE23–1B)
Direct materials quantity (PE23–1B)
Show more…

Added by Kristina C.

Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Prepare a 2016 income statement through gross profit for Dvorak Company, using the variance data in Practice Exercises 23-1B, 23-2B, 23-3B, and 23-4B. Assume Dvorak sold 1,000 units at $90 per unit. DVORAK COMPANY Income Statement Through Gross Profit For the Year Ended December 31, 2016 Sales (1,000 units × $90) Cost of goods sold—at standard* Gross profit—at standard Favorable Unfavorable Less variances from standard cost: Direct materials price (PE23–1B) Direct materials quantity (PE23–1B)
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Transcript

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00:01 Hello, we have to complete the income statement given in the question.
00:08 So first prepare a column for particulars 2026 2025 2024 and 2023 under particulars first will be sales and sales can be calculated by subtracting 50 ,000 and 31 ,000 divided by 30 31 ,000 multiplied by 100 so it will be 61 .29 % similarly in the year 2025 it will be 45 ,000 less 31 ,000 divided by 31 ,000 multiplied by 100 so it will be 45 ,000 one six person we will perform the same formula for 2029 24 2023 we will subtract the 31 ,000 from 42 ,000 in 2024 and 31 ,000 from 36 ,000 in 2023 so the ultimate answer in 2024 will be 35 .48 % and 2023 it will be 16 .13 % and cost of goods sold for 2026 we will subtract 20 ,000 from 29 ,000 and will divide 20 ,000 into 100 so cogs will be 45 % here we will subtract 20 ,000 from 28 ,000 and we will get 40 % we will apply the same formula in every year by subtracting 20 ,000 from the given cogs so here it will be 10 % and here also it will be 10 % now we get gross profit so the gross profit here we will subtract 21 ,000 and 11 ,000 and base will be 11 ,000 multiplied by 100 so it will be 90 .91 % similarly we will do in every year by subtracting 11 ,000 from the given gross profit so it will be 54 .55 % 81 .82 % and 27 .27 % now operating expenses we will subtract 7 ,000 from 12 ,000 and divide 7 ,000 into 100 so it will be 71 .43 % and we will perform the same step in each year by subtracting the 7 ,000 from the given operating expenses of each year so 57 .14 % will be it and it also it will be also 57 .14 % and last it will be 14 .29 % net income will be 1 to 5 % 50 % 1 to 5 % and 50 % as we have subtracted 4 ,000 from the given net income...
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