Prepare an income statement for the year ended December 31, 2014, through gross profit for Tip Top Corp. using the variance data in Example Exercises 22-1 through 22-4. Assume Tip Top sold 3,000 units at $100 per unit.

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Tip Top Corp
Income Statement through Gross Profit For the Year Ended December 31, 2014
Sales (3,000 units × $100)			$300,000
Cost of goods sold—at standard			194,250*
Gross profit—at standard			$105,750
	Favorable	Unfavorable
Less variances from standard cost:
Direct materials price (EE 22-1)	$2,775
Direct materials quantity (EE 22-1)		$2,250
Direct labor rate (EE 22-2)		2,226
Direct labor time (EE 22-2)	960
Factory overhead controllable (EE 22-3)		350
Factory overhead volume (EE 22-4)		450	1,541
Gross profit—actual			[latex]\underline{\underline{\$ \ 104,209}}[/latex]
*Direct materials (3,000 units × 6 lbs. × $4.50)	$ 81,000
Direct labor (3,000 units × 2.5 hrs. × $12.00)	90,000
Factory overhead [3,000 units × 2.5 hrs. × ($2.20 + $0.90)]	23,250
Cost of goods sold at standard	[latex]\underline{\underline{\$ \ 194,250}}[/latex]

Question 22.6: Prepare an income statement for the year ended December 31, ...

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