In: Accounting
The following information is available for Cinrich Pools, a manufacturer of above-ground swimming pool kits:
2020 |
2021 |
Total |
||||
---|---|---|---|---|---|---|
Units produced |
11,800 | 7,800 | 19,600 | |||
Units sold |
9,800 | 9,800 | 19,600 | |||
Selling price per unit |
$4,230 | $4,230 | ||||
Direct material per unit |
$760 | $760 | ||||
Direct labor per unit |
$1,400 | $1,400 | ||||
Variable manufacturing overhead per unit |
$314 | $314 | ||||
Fixed manufacturing overhead per year |
$2,301,000 | $2,301,000 | ||||
Fixed selling and administrative expense per year |
$1,601,300 | $1,601,300 |
In its first year of operation, the company produced 11,800 units
but was able to sell only 9,800 units. In its second year, the
company needed to get rid of excess inventory (the extra 2,000
units produced but not sold in 2020), so it cut back production to
7,800 units.
Calculate profit for both years using full costing. (Round cost per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g.125.)
2020 |
2021 |
||||
---|---|---|---|---|---|
Net profit |
$enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places |