Question

Newman, Inc. has collected the following data for November (there are no beginning inventories) (Click the icon to view the data.) Read the requirements: Requirement 1. Using absorption costing calculate the unit product cost. (Round your final answer to the nearest cent) Data Table Absorption costing Unit product cast Requirement 2. Prepare an income statement using the traditional format Newman, Inc. Income Statement (Absorption Costing) For the Month Ended November 30 Units produced and sold 700 units Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable seling and administrative costs Fixed selling and administrative costs 375 per unit 42 per unit 74 per unit 18 per unit 11,200 per month 10 per unit Operang Income 6.375 per month Print Done Choose from any list or enter a number in the input feks and then continue to the question

Answer 1

Cost of goods sold = [($42 + $74 + $18) X 700] + $11,200 = $105,000

Selling and administrative costs = ($10 X 700) + $4,375 = $11,375

Net Sales	262500
Cost of goods sold	-105000
Gross profit	157500
Selling and administrative costs	-11375
Operating income	146125