Exercise 6-9 Variable and Absorption Costing Unit Product Costs
and Income Statements [LO6-1, LO6-2, LO6-3]
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
$
28
Direct
labor
$
16
Variable
manufacturing overhead
$
4
Variable selling
and administrative
$
3
Fixed costs per
year:
Fixed
manufacturing overhead
$
320,000
Fixed selling
and administrative expenses
$
100,000
During its first year...