Question
In: Accounting
Tec Industries manufactures and sells one product. The following information pertains to each of the company’s...
Tec Industries manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
Variable costs per unit: Manufacturing: Direct Materials $ 35 Direct Labor $ 25 Variable manufacturing overhead $ 7 Variable Selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 125,000
During its first year of operations, BIA produced 40,000 units and sold 30,000 units. During its second year of operations, BIA produced 40,000 and sold 50,000 units. The selling price of the company’s product is $100 per unit.
1) Assume the company uses Variable Costing.
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2 using Variable Costing.
PLEASE SHOW ALL WORK!!
Solutions
ekkarill92 answered 3 hours agoRelated Solutions
Tec Industries manufactures and sells one product. The following information pertains to each of the company’s...
Tec Industries manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit: Manufacturing: Direct Materials $ 35
Direct Labor $ 25 Variable manufacturing overhead $ 7 Variable
Selling and administrative $ 5 Fixed costs per year: Fixed
manufacturing overhead $ 320,000 Fixed selling and administrative
expenses $ 125,000
During its first year of operations, BIA produced 40,000 units
and sold 30,000 units. During its second year of...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
20
Direct labor
$
13
Variable manufacturing overhead
$
4
Variable selling and administrative
$
3
Fixed costs per year:
Fixed manufacturing overhead
$
320,000
Fixed selling and administrative expenses
$
70,000
During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
29
Direct labor
$
15
Variable manufacturing overhead
$
3
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
320,000
Fixed selling and administrative expenses
$
70,000
During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations:
Variable costs
per unit:
Manufacturing:
Direct
materials
$
28
Direct
labor
$
20
Variable
manufacturing overhead
$
4
Variable selling
and administrative
$
3
Fixed costs per
year:
Fixed
manufacturing overhead
$
210,000
Fixed selling
and administrative expenses
$
150,000
During its first year of operations, Haas produced 60,000 units
and sold 60,000 units. During its second year of...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
24
Direct labor
$
13
Variable manufacturing
overhead
$
5
Variable selling and
administrative
$
4
Fixed costs per year:
Fixed manufacturing
overhead
$
240,000
Fixed selling and administrative
expenses
$
50,000
During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
30
Direct labor
$
22
Variable manufacturing overhead
$
6
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
540,000
Fixed selling and administrative expenses
$
240,000
During its first year of operations, Haas produced 60,000 units
and sold 60,000 units. During its second year of...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
21
Direct labor
$
14
Variable manufacturing
overhead
$
2
Variable selling and
administrative
$
1
Fixed costs per year:
Fixed manufacturing
overhead
$
240,000
Fixed selling and administrative
expenses
$
80,000
During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of...
Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s...
Ogilvy Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations:
Variable cost per unit:
Direct materials
$
30
Fixed costs per year:
Direct labor
$
1,702,000
Fixed manufacturing overhead
$
836,000
Fixed selling and administrative expenses
$
290,000
The company does not incur any variable manufacturing overhead
costs or variable selling and administrative expenses. During its
first year of operations, Ogilvy produced 74,000 units and sold
74,000 units. During...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
21
Direct labor
$
11
Variable manufacturing
overhead
$
5
Variable selling and
administrative
$
4
Fixed costs per year:
Fixed manufacturing
overhead
$
320,000
Fixed selling and administrative
expenses
$
90,000
During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
25
Direct labor
$
13
Variable manufacturing overhead
$
3
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
320,000
Fixed selling and administrative expenses
$
90,000
During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of...
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