Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations:
Variable costs per unit: | ||
Manufacturing: | ||
Direct materials | $ | 10 |
Direct labor | $ | 7 |
Variable manufacturing overhead | $ | 3 |
Variable selling and administrative | $ | 3 |
Fixed costs per year: | ||
Fixed manufacturing overhead | $ | 380,000 |
Fixed selling and administrative | $ | 290,000 |
During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company’s product is $61 per unit.
1. Prepare an income statement for the year. Assume that the company uses variable costing.
Particulars | Amount |
Sales (18,000 X $61) | $1,098,000 |
Variable expense: | |
Direct material | $180,000 |
Direct labour | $126,000 |
Variable manufacturing overhead | $54,000 |
Variable selling and administrative | $54,000 |
Total variable cost | $414,000 |
Contribution margin | $684,000 |
Fixed expense: | |
Fixed manufacturing overhead | $380,000 |
Fixed selling and administrative | $290,000 |
Net operating income | $14,000 |
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $12 Direct labor $9 Variable manufacturing overhead $2 Variable selling and administrative $2 Fixed costs per year: Fixed manufacturing overhead $403000 Fixed selling and administrative $313000 During the year, the company produced 31,000 units and sold 26,000 units. The selling price of the company’s product is $55 per unit. Assume that the company...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 12 Direct labor $ 3 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 324,000 Fixed selling and administrative $ 234,000 During the year, the company produced 27,000 units and sold 23,000 units. The selling price of the company’s product is $42...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 14 Direct labor $ 3 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 Fixed selling and administrative $ 240,000 During the year, the company produced 33,000 units and sold 24,000 units. The selling price of the company’s product is $44...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 10 Direct labor $ 4 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 231,000 Fixed selling and administrative $ 141,000 During the year, the company produced 21,000 units and sold 17,000 units. The selling price of the company’s product...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 11 Direct labor $ 4 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 308,000 Fixed selling and administrative $ 218,000 During the year, the company produced 28,000 units and sold 24,000 units. The selling price of the company’s product is $41...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 10 Direct labor $ 4 Variable manufacturing overhead $ 2 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 374,000 Fixed selling and administrative $ 284,000 During the year, the company produced 34,000 units and sold 26,000 units. The selling price of the company’s product is $44...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 11 Direct labor $ 8 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 420,000 Fixed selling and administrative $ 330,000 During the year, the company produced 30,000 units and sold 25,000 units. The selling price of the company’s product is $54...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 14 Direct labor $ 8 Variable manufacturing overhead $ 2 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 250,000 Fixed selling and administrative $ 160,000 During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company’s product is $47...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 13 Direct labor $ 7 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 288,000 Fixed selling and administrative $ 198,000 During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company’s product is $48...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations Variable costs per unit: Manufacturing: Direct materials 10 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 5380,000 5290,800 During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company's product is $61 per unit Required 1. Assume that the company...