1a | |||
Direct materials | 15 | ||
Direct labor | 5 | ||
Variable manufacturing overhead | 1 | ||
Fixed manufacturing overhead | 11 | =286000/26000 | |
Unit product cost | 32 | ||
b | |||
Absorption Costing Income Statement | |||
Sales | 1012000 | =22000*46 | |
Cost of goods sold | 704000 | =22000*32 | |
Gross margin | 308000 | ||
Selling and administrative expenses | 218000 | =196000+(22000*1) | |
Net operating income (loss) | 90000 | ||
2a | |||
Direct materials | 15 | ||
Direct labor | 5 | ||
Variable manufacturing overhead | 1 | ||
Unit product cost | 21 | ||
b | |||
Variable Costing Income Statement | |||
Sales | 1012000 | =22000*46 | |
Variable expenses: | |||
Variable Cost of goods sold | 462000 | =22000*21 | |
Variable Selling and administrative expenses | 22000 | =22000*1 | |
484000 | |||
Contribution margin | 528000 | ||
Fixed expenses: | |||
Fixed manufacturing overhead | 286000 | ||
Fixed Selling and administrative expenses | 196000 | ||
482000 | |||
Net operating income (loss) | 46000 | ||
Exercise 6-6 Varieble and Absorption Costing Unit Product Costs and Income Statements (LO6-1, LO6-21 Lynch Company...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements (LO6-1, LO6-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: $ 13 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative 1 $ 288,000 $198,000 During the year, the company produced 24,000 units and sold 20,000 units. The...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] 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 $ 5 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 264,000 Fixed selling and administrative $ 174,000 During the year, the company produced 33,000...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] 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...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] 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 $ 5 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 385,000 Fixed selling and administrative $ 295,000 During the year, the company produced 35,000...
Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, L06-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: A A Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative wa A A $ 300,000 $ 190,000 During the year, the company produced 25,000 units and sold...
Exercise 7.b Variable and Absorption Costing Unit Product costs and income statements (LUT 1. L07-2) 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 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $380,000 $290,000 During the year, the company produced 38,000 units and sold 18,000 units. The selling price of...
Problem 6-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6- 2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing $ Direct materials 27 Direct labor 14 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: 6 1 $ 510,000 Fixed manufacturing overhead Fixed selling and administrative expenses 210,000 During its first year of operations, Haas produced...
Exercise 7-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7-2] 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 $ 4 Variable manufacturing overhead $ 2 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 370,000 Fixed selling and administrative $ 200,000 During the year, the company produced 37,000...
6-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, Lo6- 2) factures and sells one product. The following information pertains to each of the company's fist hree years of operations Manufacturing: Direct materials Direct labor Variable manufacturing overhead 21 Variable selling and administrative Fixed costs per yeari s 330,000 s 150,000 Fixed manufacturing overhead Pixed selling and administrative expenses During its first year of operations, Haas produced 40,000 units and sold 40,000 units. During its second year...
requiremnets 1a. 1b. 2a. 2b. Exercise 7-6 Variable and Absorption Costing Unit Product Costs and Income Statements (L07-1, LO7 Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costa per uniti Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costo per year. Fixed manufacturing overhead Fixed selling and administrative $276,000 $186.000 During the year, the company produced 23,000 units and sold 19,000 units....