At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
Answer:
Favaz
The income (loss) under absorption costing is
= $41,000.
Explanation:
a) Data and Calculations:
Variable manufacturing cost per unit, $7
Fixed manufacturing costs, $60,000
Variable selling and administrative costs per unit, $3
Fixed selling and administrative costs, $263,000
Selling price per unit = $48
Planned production in units = 10,000
Actual production in units = 10,000
Number of units sold = 9,500
Ending inventory = 500 (10,000 - 9,500)
Income Statement
Sales revenue ($48 * 9,500) $456,000
Cost of production:
Variable manufacturing $70,000 ($7 * 10,000)
Fixed manufacturing costs, 60,000
Total cost of production $130,000
Less Ending inventory 6,500 ($13 * 500)
Cost of goods sold 123,500
Gross profit $332,500
Expenses:
Variable selling and administrative
costs per unit, ($3 * 9,500) $28,500
Fixed selling and
administrative costs, 263,000
Total expenses $291,500
Net income $41,000
Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.