Question

Boston, Inc., planned and actually manufactured 190,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixed manufacturing costs were $950,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $360,000. Boston sold 130,000 units of product at $40 per unit.

Answer 1

To. of units produced - 190,000 units Variable manufacturing & $ 20 per unit cost Vanable $9 per unit operating (mop - erating (map Cost Fired boosts - mot = $ 950,000 fined cost operating = $360,000 No. of units sold = 130,000 @ 401- per unit 5 Absorbtion costing ( fined veanut cost -nou a particulars I Amourt a) Net sales 130,000 @ 401- $ 5,200,000 6 Less: Cost of goods sold in Varsable manufact coil $2,600,000 130,000 X920 ( fined oanuf cost $950,000 3,550,000 Gross profit 1650,000 d) Less: Copenses. w Frand cost @roof $360,000 1,530,000 Variable cost $1,150,000 30,000xg. 120,000 e) Net Income

ariable costine Statement on particulars (30,000 x 40) n ext $15,200,000 Les Variable manufacting cost $2,600,000 ( 130,000 xdlo) An C) Variable manufacty marhn 2,600,000 OP Fined D) les amatele mart op. $ $ 950,000 a) Variable Jotal cot 11,680,000 of Fined cost & Vanable cost ofada (130000 9) = $ 1,170,000 1.530,000 Fe r o 360,000 Met Incore (20000 Total Door Toral a absorphon costo d Met brome Variable cost Met Income 100 Total $120,000