1a. Product cost per unit | |
Per unit product cost using: | Absorption costing |
Direct material per unit | $60 |
Direct labor per unit | $22 |
Variable overhead per unit | $8 |
Fixed overhead per unit [Fixed overhead ÷ Number of units produced = $552,000 ÷ 46,000 units] |
$12 |
Total Cost per unit | $102 |
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COOL SKY | ||
Absorption Costing Income Statement | ||
Sales [38,000 units x $140 per unit] | $5,320,000 | |
Less: Cost of goods Sold | ||
Direct materials [38,000 units x $60] | $2,280,000 | |
Direct labor [38,000 units x $22] | $836,000 | |
Variable overhead cost [38,000 units x $8] | $304,000 | |
Fixed overhead cost [38,000 units x $12] | $456,000 | |
Cost of goods sold | $3,876,000 | |
Gross Margin [Sales - Cost of goods sold] | $1,444,000 | |
Selling, General, and Administrative expenses | ||
Variable selling and administrative expenses [38,000 units x $10] | $380,000 | |
Fixed selling and administrative cost | $110,000 | |
$490,000 | ||
Net Income (loss) [$1,444,000 - $490,000] | $954,000 |
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2a. Product cost per unit | |
Per unit product cost using: | Variable Costing |
Direct material per unit | $60 |
Direct labor per unit | $22 |
Variable overhead per unit | $8 |
Cost per unit | $90 |
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COOL SKY | ||
Variable Costing Income Statement | ||
Sales [38,000 units x $140 per unit] | $5,320,000 | |
Less: Variable Costs | ||
Variable Production Costs [38,000 units x $90] | $3,420,000 | |
Variable Selling and administrative expenses [38,000 x $10] | $380,000 | |
Total Variable Costs | $3,800,000 | |
Contribution Margin [Sales - Total Variable Costs] | $1,520,000 | |
Less: Fixed expenses | ||
Fixed Overhead costs | $552,000 | |
Fixed selling and administrative cost | $110,000 | |
Total fixed expenses | $662,000 | |
Net Income (loss) [$1,520,000 - $662,000] | $858,000 |
Required Information Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 (The...
Required Information Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below) Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 46,000 units and sold 38.000 units at a price of $140 per unit. 60 5552.000 Manufacturing costs Direct materials per unit 60 Direct labor per unit 22 Variable overhead per unit Fixed overhead...
Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 The following information applies to the questions displayed below) Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 40,000 units and sold 32,000 units at a price of $140 per unit Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling...
Required information Exercise 6-9 Income statement under absorption costing and variable costing LO P1, P2 The following information applies to the questions displayed below Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year $60...
Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 The following information applies to the questions displayed below] Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units ata price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and...
Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 The following information applies to the questions displayed below.) Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $130 per unit. $ $ 54 20 Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead...
Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below. Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $130 per unit. Manufacturing costs Direct materials per unit 54 Direct labor per unit 20 Variable overhead per unit Fixed overhead for the...
19 Homework W Required information Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below) Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. . Manufacturing costs Direct materials per unit Direct later per unit Variable overhead per unit Fixed Overhead...
Seed Ch 19 Homework 4 Exerclse 10-9 Income statement under absorption costing and varlable costing LO P1, P2 The following information applies to the questions displayed below) Cool Sky reports the following costing data on ts product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unt Part 4 of 4 166 polnts Manufacturing costs Direct materials per unit Direct labor per unit Variable...
CH 06 Ex 6-9 Saved Part 1 of 4 Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] points Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 46,000 units and sold 38,000 units at a price of $150 per unit. Skipped Manufacturing costs Direct materials per unit Direct labor per...
! Required information Exercise 19-7 Income reporting under absorption costing and variable costing LO P2 The following information applies to the questions displayed below.) Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 330 per unit 100,000 units 103,250 units 3,250 units $ 422,500 260,000 $ 682,500 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $130)...