Question

In: Accounting

The following information is available for Cinrich Pools, a manufacturer of above-ground swimming pool kits: 2020...

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

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