Question
In: Accounting
The following costs were incurred for the single product produced during the first year of operations...
The following costs were incurred for the single product produced during the first year of operations for the Fairfax Manufacturing Company:
| Variable costs per unit: | ||
| Manufacturing: | ||
| Direct materials | $ 11 | |
| Direct labor | $ 5 | |
| Variable manufacturing overhead | $ 2 | |
| Variable selling and administrative | $ 2 | |
| Fixed costs per year: | ||
| Fixed manufacturing overhead | $ 350,000 | |
| Fixed selling and administrative | $ 260,000 | |
During the year, the company produced 35,000 units and sold 25,000 units. The selling price of the company’s product is $46 per unit.
Required:
1. Assume that the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
2. Assume that the company uses variable
costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
Solutions
ekkarill92 answered 3 days agoRelated Solutions
Maxwell Company manufactures and sells a single product. The following costs were incurred during 2014, the company’s first year of operations:
3. Variable and
Absorption Costing
Follow the directions below and answer
the following problem.
Maxwell Company manufactures and sells
a single product. The following costs were incurred during 2014,
the company’s first year of operations:
Variable Costs per Unit:
Production:
Direct
Materials
$16
Direct
Labor
8
Variable Manufacturing
Overhead
2
Selling and
Administrative
4
Fixed Costs per Year:
Manufacturing
Overhead
$ 140,000
Selling and
Administrative
110,000
During 2014, the company produced
20,000 units and sold 18,000 units. The selling price...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Lynch Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
11
Direct labor
$
5
Variable manufacturing overhead
$
2
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
350,000
Fixed selling and administrative
$
260,000
During...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
11
Direct labor
$
8
Variable manufacturing overhead
$
1
Variable selling and administrative
$
1
Fixed costs per year:
Fixed manufacturing overhead
$
420,000
Fixed selling and administrative
$
330,000
During the year, the company produced 30,000 units and sold
25,000 units. The selling price of the company’s product is $54...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Variable costs
per unit:
Manufacturing:
Direct
materials
$
11
Direct
labor
$
5
Variable
manufacturing overhead
$
2
Variable selling
and administrative
$
2
Fixed costs per
year:
Fixed
manufacturing overhead
$
350,000
Fixed selling
and administrative
$
260,000
During the year, the company produced 35,000 units and sold
25,000 units. The selling price of the company’s product is $46...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
12
Direct labor
$
9
Variable manufacturing overhead
$
2
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
403,000
Fixed selling and administrative
$
313,000
During the year, the company produced 31,000 units and sold
26,000 units. The selling price of the company’s product is $55...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company
manufactures and sells a single product. The following costs were
incurred during the company’s first year of operations:
Variable costs
per unit:
Manufacturing:
Direct
materials
$
13
Direct
labor
$
5
Variable
manufacturing overhead
$
1
Variable selling
and administrative
$
1
Fixed costs per
year:
Fixed
manufacturing overhead
$
320,000
Fixed selling
and administrative expenses
$
230,000
During the year, the
company produced 32,000 units and sold 17,000 units. The selling
price of the company’s product is...
Baxtell Company manufactures and sells a single product. The following costs were incurred during the company’s...
Baxtell Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
28
Direct labour
18
Variable
manufacturing overhead
4
Variable selling and
administrative
10
Fixed costs per year:
Fixed manufacturing
overhead
393,000
Fixed selling and
administrative expense
120,000
During the year, the company produced 32,750 units and sold
24,000 units. The selling price of the company’s product is $84 per
unit.
Required:
1....
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations: Variable costs per unit: Manufacturing: Direct
materials $ 11 Direct labor $ 8 Variable manufacturing overhead $ 1
Variable selling and administrative $ 1 Fixed costs per year: Fixed
manufacturing overhead $ 420,000 Fixed selling and administrative $
330,000 During the year, the company produced 30,000 units and sold
25,000 units. The selling price of the company’s product is $54...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
11
Direct labor
$
5
Variable manufacturing overhead
$
2
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
264,000
Fixed selling and administrative
$
174,000
During the year, the company produced 22,000 units and sold
18,000 units. The selling price of the company’s product is $45...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company
manufactures and sells a single product. The following costs were
incurred during the company’s first year of operations:
Variable costs
per unit:
Manufacturing:
Direct
materials
$
14
Direct
labor
$
5
Variable
manufacturing overhead
$
1
Variable selling
and administrative
$
1
Fixed costs per
year:
Fixed
manufacturing overhead
$
264,000
Fixed selling
and administrative
$
174,000
During the year, the
company produced 33,000 units and sold 15,000 units. The selling
price of the company’s product is $52...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Singh Development Co. is deciding whether to proceed with Project X. The cost would be $12...
- CS2123 Data Structures - Fall 2019 Assignment 1: Function Runtimes Table Due 9/11/19 by 11:59pm Completing...
- Question 2. Design a 16-1 MUX using any number of lower MUXs, such as 8-1 or...
- . Write a function that takes, as arguments, two objects, value1 and value2. If
- Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market...
- Consider the distillation of ethanol (C2H5OH) and the combustion of ethanol . Use a bullet point...
- 1.How does Economic exposure to exchange rate movements affect the capital budgeting of a firm? Provide...
ADVERTISEMENT